AMEX AND AIR MILES HOPING NEW CARD TAKES OFF
By Adnews Staff
American Express Canada Inc. of Markham, Ont. and its Air Miles Reward Program have launched the American Express Air Miles Credit Card. This marks the first time American Express has introduced a co-branded credit card in Canada. Over the last 18 months, the company has launched co-branded cards in the U.S. and France. The new card carries no annual fee and offers an introductory interest rate of 9.9% for six months. The regular rate for the card is 17.95%. Users of the card will collect one Air Miles travel mile for every $20 spent. Cash advances and interest charges cannot be used towards earning air miles. Holders of the Air Miles Collector Card will be able to earn air miles faster by using both cards together at retail locations that sponsor the collector card. Air Miles travel miles can be redeemed for free air travel and a variety of non-flight rewards. A national TV campaign, including a 30-second awareness spot and a 60-second direct response spot, begins airing today. It will be followed by a direct mail campaign beginning next week. In addition, free-standing inserts will appear in newspapers in Western Canada and application forms will be available at the locations of Air Miles sponsors. Ogilvy & Mather of Toronto handled the advertising. Air Miles will also pump up awareness for the card by advertising it on Air Miles members' statements and in the Air Miles newsletter. More than five million Canadian households are members of the Air Miles Reward Program and the business boasts over 110 participating sponsors. In addition to American Express, the list includes such names as Bank of Montreal, Shell Canada, Blockbuster Video and Sears Canada. Air Miles is run by Loyalty Management Group Canada with offices in Toronto, Montreal and Calgary. American Express has made several recent efforts to boost its presence in the Canadian marketplace. Last year it launched four new credit cards in Canada offering such incentives as financial rewards and lower interest rates.