Aeroplan Redemption Points: An Asset or a Liability? Yes, "that is the question" that been a popular topic in the negotiations between Aimia/Aeroplan and the bully Air Canada and its gang of thugs.
The loyalty points that the 5 million Aeroplan members have earned are a net asset.
It is the hook that keeps the Aeroplan eco-system thriving and provides travel dreams for millions of Aeroplan members that have been saving their loyalty points and are ready to use them.
It also is an net asset that serves as a runway for new innovative services, and global expansion.
Yes, the loyalty points will have a cost to Aeroplan when the members redeem those loyalty points.
However, there is a intangible goodwill asset that is correspondingly associated with those loyalty points.
"Goodwill is an intangible asset that arises when one company purchases another for a premium value. The value of a company’s brand name, solid customer base, good customer relations, good employee relations ,and any patents or proprietary technology represent goodwill."
Hence, the net effect is that the loyalty points are an asset.
However, when one is a bully, like Air Canada, it does not understand or appreciate the concept or value of goodwill since it has no goodwill of its own.
Aimia/Aeroplan is a data analytics company that understands the needs of its 5 million members in terms of travel, vacation experiences, shopping habits etc….and…can influence the airline industry, travel industry, and other shopping expenditures.
Air Canada is an airline…not a data analytics company…enough said.