ARE FREQUENT FLYER SPIN-OFFS DEAD?

Ever since Air Canada started the process of divesting its Aeroplan Frequent Flyer Program (FFP) in 2005 — the global loyalty zeitgeist has seen virtually every loyalty consultant, major consulting firm, coalition program operator, financial analyst, and long-term “loyalty insider” — place Air Canada and Aeroplan on a pedestal whilst preaching the new-world-order of FFP spinoffs.

If you were to listen to the propaganda of the pro-spinoff brigade over the last decade, you would likely believe that spinning-off your FFP could even solve world peace.

That all came crashing down yesterday, with the tectonic-plate-shifting news that Air Canada and Aeroplan will be divorcing in 2020. Air Canada has decided to (re)launch its own FFP and bring the program in-house.

Aeroplan will continue to be able to purchase seats from Air Canada at market rates, but will no longer have access to 8% guaranteed inventory, and will no longer have access to sought-after Star Alliance redemption seats.

The response has been seismic in nature.

First — Aimia Inc. (the parent company of Aeroplan) had its stock re-accommodated to the tune of…