Aeroplan’s UK loyalty program signs on major airline partner

Discussion in 'Air Canada | Aeroplan' started by AmericanGirl, Mar 14, 2011.  |  Print Topic

  1. AmericanGirl
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    AmericanGirl Silver Member

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    Ross Marowits The Canadian Press
    MONTREAL—Groupe Aeroplan’s United Kingdom Nectar loyalty program has signed one of Britain’s biggest airlines as its partner beginning at the end of this month.

    Nectar members will be able to redeem their points for seats or combine them with cash payments on easyJet flights.

    Aeroplan’s Canadian program airline partner is Air Canada.

    “From our experience with the Canadian Aeroplan program, we know how incredibly valuable flight rewards are to loyalty program participants,” said Aeroplan CEO Rupert Duchesne.

    EasyJet flies to more than 550 destinations in 30 countries.

    Aeroplan said nearly one million Nectar members have enough points to redeem for flights to popular destinations such as Amsterdam, Spain’s Malaga, or Nice in France.

    It estimates that about 300,000 seats will be booked annually using Nectar points.

    Grocery partner Sainsbury’s will support the easyJet addition through in-store promotional activity as well as other direct marketing initiatives.

    Martin Landry of Desjardins Securities said adding an air travel redemption partner won’t add direct revenues for Aeroplan but is key to keeping members engaged in the program.

    About 75 per cent of miles redeemed in Canada are for air rewards, highlighting the importance of an airline redemption partner.

    “With this partnership, Nectar UK fills an important redemption vertical that will enable it to strengthen its leadership position in the U.K.’s loyalty coalition market,” he wrote in a report. Landry said it remains to be seen whether the agreement will translate into an accumulation partnership since easyJet’s low-cost business model makes it less conducive to join a full-fledged loyalty program, such as Nectar.

    The 17 million Nectar members represent an attractive customer base for the airline given the intense competition among European carriers, he added.

    “This partnership is a good first step in strengthening the ties between both companies.”

    The global loyalty business is expected to reach $100 billion by 2015

    http://www.thestar.com/travel/artic...oyalty-program-signs-on-major-airline-partner
     
  2. ACMM
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    Thanks for the update! Appreciated!
     
  3. flying-gal
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    After reading that... I can't tell exactly what they are saying or how this ties in with AC.

    If you have a UK nectar card.. you can now use those nectar points to buy a seat on Easy Jet and travel around Europe. Are they also allowing your nectar points to buy seats on AC?
    Can we also use our aeroplan points to buy seats on Easy Jet?
    I don't really understand how this is useful to us aeroplan members.

    I have a nectar card and frequent both Sainsbury's and Home Base a lot while in the UK. :)
    If somebody can explain how the above announcement benefits Aeroplan people, I would appreciate it.
    thanks folks.
     
  4. FG,
    There is no link to AC whatsoever. It just so happens that Aeroplan owns Nectar and that division has created an outlet for people with Nectar points by hooking up with Easy jet as an airline partner. People with Nectar cards and points will be able to get reward seats on Easy Jet but the airline won't be giving Nectar points for flying with them.
     
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  5. "The global loyalty business is expected to reach $100 billion by 2015"
    That brings to mind Robert Milton's foresight in spinning aeroplan off from AC and creating lots of real value for shareholders at the time. Say what we want about him but he was a visionary and I think Ac is now coming full circle in its long awaited turnaround. Unfortunately we are now paying much more for airfares but that was long overdue. Milton also made AC a founding member of *A which is now maturing into a "de facto" huge conglomerate with all the code and revenue sharing activity between the partners. They also share their loyalty business by making points earned on one carrier available for reward use on other *A carriers.

    Its become a great business model, but, I would still prefer that AC owned its own FF program and simply hired AE to administer it. its not going to happen for some time, if ever, though.
     
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  6. flying-gal
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    Thanks Terry, as always you have great information to share.

    I must have read that link about Nectar /Easy-Jet/ AC about 5 times. [​IMG] Feeling rather stupid because I just couldn't see the value in this promo for Aeroplan members and wondered what I was missing.
     
  7. flying-gal
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    I too would like to see AC own its own FF program, but doubt that will happen.
     
  8. TRAVELSIG
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    Hey I just found a use for my Nectar points (which I get mostly through gasoline and grocery purchases)!
     
  9. flying-gal
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    flying-gal Silver Member

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    Like yourself I have a nectar card, collecting points for groceries, gas, homebase etc... but do not fly EasyJet. However, with Bmi no longer flying between LHR and MAN... I guess I could use EasyJet to get from London up to Glasgow/ Preswick. Not a convenient option though, since EasyJet don't fly from Heathrow.
     

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