What Happens to Your Aeroplan Miles?

Air Canada Buys Aeroplan

Air Canada created Aeroplan in 1984 to reward Air Canada and its alliance members. Then in 2008 Air Canada sold Aeroplan, but still maintained its partnership. Last year, Air Canada declared its intention to abandon Aeroplan in 2020 to create its own frequent flyer program and then this year (2018), Air Canada - along with its partners such as TD, CIBC, and VISA - have bought back Aeroplan for $450 million with its 1.9 billion miles liability.

If you are an Aeroplan member and not sure what to do with your miles after all these developments, I will shed some light today in simple terms so you can get the most out of your Aeroplan miles.

Aeroplan provides the best value when you redeem them for business class flights. However, make sure you don’t pay fuel and other surcharges levied by some airlines including Air Canada. Watch this video to learn more about it: How Not to Get Dinged by Air Canada on Aeroplan Rewards

So if you have a trip coming up before 2020, redeeming Aeroplan for business class will provide the most value. Although, Air Canada mentioned Aeroplan will be transferable to the new Air Canada loyalty program, I doubt that you will get better value than redeeming your miles now for business class flights.

However, if you are not taking a trip, don’t rush to redeem your miles. Rush decisions often make poorer judgements and lower redemption values.

In terms of Aeroplan credit cards, no one knows at this point whether these cards will continue as is or will have decreased rewards and benefits. As far as you are concerned, you can keep using these cards to earn miles. I don’t see any need to cancel and change these Aeroplan cobranded credit cards yet.

I do see more credit cards with hefty sign-up bonuses and a variety of benefits & rewards coming up in the future, once Air Canada is set to go with its new frequent flyer loyalty program in 2020 and beyond.  

There is a possibility that Air Canada will devalue Aeroplan at the time of the transfer or after that. This is because of the humongous amounts Air Canada and its partners are paying to absorb Aeroplan will have to come from somewhere and devaluing seems to be the easiest way to make that happen.

So, to summarize everything in brief:

- If you need to redeem Aeroplan, redeeming for business class flight will provide the best value and I doubt you will getter better value than now even after the transfer to the new program.

- Keep using your Aeroplan credit cards as usual.

- Keep an eye out for more credit cards with mega bonuses and possibly better reward structure and benefits in the future.

If you are interested to learn more about Aeroplan, watch my Aeroplan videos here:

Aeroplan 101 - Tips, Tricks, & the Basics

Companion Flies to Hawaii only for $121 |Cheap Flight to Hawaii

Alaska Airlines MBNA World Elite MasterCard Annual Fee Goes Up

Alaska Airlines recently increased its World Elite MasterCard and Platinum Plus MasterCard annual fees to $75 and $99. However, these cards still provide a lot more value than their annual fees.

These cards come with a bonus 20,000 and 30,000 Mileage Plan miles after spending $1,000 within the first three months. 30,000 miles are good enough to fly one-way business class (for example, Vancouver to New York) short distance or one-way economy class long distance (for example, Toronto to Iceland) on Alaska Airlines partner members.

And then Alaska Airlines MBNA World Elite and Platinum Plus MasterCard let your companion fly for $121 US only when you pay full fare for yourself.

You can fly anywhere Alaska Airlines flies and one popular destination is Hawaii, which could cost around $1000 to $1200 for your companion. The only drawback is that companion fare can be used only on Alaska Airlines and they serve only Western Canadian cities such as Calgary, Edmonton, Kelowna, Vancouver, and Victoria.

Fly Companion to Hawaii for $121 | Alaska Airlines

Companion fare can easily pay off the cost of the annual fees for these cards: $75 and $99 for Alaska Airlines Platinum Plus & World Elite Mastercard every year.

In the first year, you will have to meet the minimum $1000 spent requirement within the first three months and then the companion fare will be awarded to the primary account holder’s Mileage Plan account after two billing cycles.

Starting the 2nd year, companion fare will be awarded after the anniversary date + within 2 billing cycles.

The anniversary date is not the date when you opened your account, but when you opened the account + an additional 6 to 8 weeks.

As you can see, these two Alaska Airlines cards still provide value if you use them tactically.

Redeem Aeroplan or Hold On It To As Aeroplan & Porter Form Partnership

Aeroplan, Air Canada, Oneworld, & Porter Airlines

Loyalty Program Aeroplan had a few runs in the news again for some recent developments. We heard about the failed unsolicited $250 million hostile bid where Air Canada partnered with 3 other financial institutions—TD Bank, CIBC Bank, and Visa —and attempted to purchase Aeroplan.

Also, more news broke out that Aeroplan and Toronto-based airline Porter formed a partnership that will make Porter Airlines a preferred Canadian partner for the Aeroplan loyalty points program and let Aeroplan members earn and redeem miles on Porter flights starting July 2020.

July 2020 is also the deadline when Air Canada splits from Aeroplan.

And then there was the news that Aeroplan is in talks with another alliance, Oneworld, to form a partnership. Oneworld is an alliance of 13 of the world's leading airlines (+ other affiliate partners) and has partners such as American Airlines, British Airways, Qantas, Cathay Pacific, Canadian Airlines, etc.

Currently, Aeroplan is a part of Star Alliance through Air Canada, which will end in 2020.

After absorbing all these developments, readers may naturally ask whether they should redeem Aeroplan now or hold on to it to redeem later? I will answer these questions in a video I just published.

Aeroplan Partners with Porter Airlines | Redeem Aeroplan Now or Wait?

Aeroplan Points for Amazon Shopping

Amazon and Aeroplan Team Up

If you shop on Amazon and feel frustrated for not getting any rewards, there is good news on the horizon. Amazon customers will soon be able to collect Aeroplan miles for spending money on Amazon. However, there are a few conditions that apply and I will go through those in this post.

Here is what you need to know to collect Aeroplan shopping on Amazon:

-          Starting April 24, 2018, Aeroplan members will be able to earn miles for shopping with Amazon Canada. This is only applicable to those shopping from Canada on Amazon Canada.

-          Aeroplan members will be able to earn at least one mile per dollar. Elite members will earn more; Black and Silver members earn at least 2 miles per dollar and Diamond members earn at least 3 miles per dollar spent on Amazon.

-          You must visit the Aeroplan website first to earn miles. Shopping directly from Amazon or their app will not earn you any Aeroplan miles.

Once you go to the Aeroplan eStore at aeroplan.com/estore, look or search for Amazon.ca. Then click and enter your Aeroplan number and last name, and hit shop now. This will take you to Amazon’s website and then continue shopping on Amazon as you would normally do to receive Aeroplan miles.

This is a good opportunity to earn lots of miles for those who shop on Amazon a lot. It’s even possible to earn miles 3 separate times on the same transaction. I am not talking about earning 3 miles but earning on 3 separate instances. I will do another post on how to do that after April 24.

Keep an eye on my YouTube Channel and on this website for more to come. I will see you shortly.

Air Canada Departs Aeroplan – 3 Things You Must Know

Aeroplan and Air Canada

The Date – The first thing you need to know is June 30, 2020 is that date when Air Canada terminates its contract from Aimia, which is the parent company of Aeroplan. After this date you will not be able to use Aeroplan to earn or redeem Air Canada or any other Star Alliance members’ points.

Aeroplan Points – The second thing you need to know is that your Aeroplan points after June 30, 2020 remain intact. Aeroplan points or miles will remain the same and they are not going anywhere. However, what you are losing is access to Air Canada or Star Alliance flights. Why this is so important? That’s in #3.

Flight Redemptions – The third and most important thing is that after June 30, 2020 you will not be able to redeem Aeroplan for flight resumptions for Air Canada or any Star Alliance members. Star Alliance is the world’s largest alliance and it has partners such as Air Canada, Singapore Airlines, Thai Airlines, Turkish Airlines, Lufthansa, Swiss Air and many others—28 total. Because Air Canada is a part of this alliance, Aeroplan has access to any alliance members for flight redemptions, especially for business class flights. Once Air Canada departs Aeroplan, you will lose that privilege and will not be able to redeem points for flights. You will still be able to redeem Aeroplan for gifts and merchandise but you will not get value out of your points.

Let me give you an example. My business class flight for my upcoming trip from Toronto to Dhaka gave me 7 cents per point return. You will never get this type of return redeeming for non-flight categories. So the best use for Aeroplan would be to redeem them for business class flights before the termination.

But be careful redeeming for business class flights, as some of the Star Alliance members charge hefty fuel surcharges. I have a video discussing the details of everything I mentioned here:

| Aeroplan & Air Canada Departure | 3 Things You Must Know Now |