AEROPLAN TO FLY SOLO
By Adnews Staff
Montreal-based Air Canada plans to convert its Aeroplan division into a wholly-owned subsidiary by the end of this summer. The airline moved the loyalty program into its own division last August in search of increased efficiency and revenues. The new subsidiary will pursue what the company describes as an "aggressive growth strategy" involving the expansion of existing agreements in the travel, entertainment and credit card industries, as well as the development of new ties to other consumer categories. Aeroplan will also proceed with previously-outlined plans for an online shopping mall at which members will earn Aeroplan miles by making purchases. "Our vision is that within five years, Aeroplan will be North America's leading customer loyalty program," said Aeroplan president and CEO Rupert Duchesne. "By negotiating partnerships with major brand retailers and e-commerce partners, we will offer our members a greater range of ways to accumulate and redeem Aeroplan miles." According to Air Canada executive vice-president of corporate development and strategy Calin Rovinescu, the possibility of taking the new subsidiary public is still being reviewed.