Marketing Misstep: Aeroplan breaks faith with customers

I had just happily settled into my seat on Air Canada 443 from Ottawa to Toronto this morning when I read the headline in today’s Globe and Mail, “Frequent fliers riled by Aeroplan changes.” (registration required) Sure got my attention quickly.

I seems that Aeroplan announced yesterday that miles accumulated by members will expire if not redeemed within seven years.

Hey Aeroplan, I’m a frequent flier, logging over 60 flights a year on Air Canada. And I’m one of those people with over a million miles in my Aeroplan account (when do I get the time to use all those miles? I’m too busy travelling!)

How did I learn about the news that you had changed the terms of the program? Via an email addressed directly to me, a valued customer? Not a chance. By reading about it in the newspaper.

So, I guess that’s how much I count to Aeroplan. Not much!

Dumb move Aeroplan. You lost the opportunity to make your case directly to me. Instead, I read about it from the perspective of the Globe and Mail report – a report that gave full voice to critics of Aeroplan.

And as a consequence, I’m even angrier at this further depreciation of the Aeroplan benefits than I would have been if you’d only taken the time to talk directly to me.

Am I alone? How many other frequent fliers feel that once again Aeroplan has left them high and dry?

  • http://trafcomnews.com donna papacosta

    Joe, a letter-writer in the Globe and Mail today suggests that Air Canada change the name of the program along with the redemption policy. One of names he put forward: Aerosham.

  • http://www.propr.ca Joseph Thornley

    Hi Donna,
    I tend to hold back from criticizing organizations and people on my blog (“If you can’t say something good, don’t say nuthin’”).
    But in this case, I feel that aeroplan has really violated the spirit of its relationship with me. I’ve been a faithful member since the program started 20 years ago. And now they change the terms retroactively. Boy, does that suck.
    And they do it on the same day that they announce a multi-million dollar distribution to shareholders. Way to go aeroplan. You’ve just sent out a message that you are limiting benefits to members and siphoning off the value to shareholders. Not nice.
    Do I sound angry? Do I sound betrayed? Darn tootin.
    And it has me looking seriously at Porter Airlines for my weekly commute.

  • Sean Reid

    Actions like these just continue to demonstrate the institutionalized arrogance that seems to be the rule of thumb at Air Canada/Aeroplan.

    I am definitely looking at alternatives. I hope competitors like Porter, WestJet and the like will seize this opportunity to present an attractive, cost-effective and long-term option to domestic air travellers in this country.

  • Ron Evans

    A couple of weeks ago, I read a news article explaining either Ontario or Quebec was passing legislation that would not permit stores to end date gift certificate thereby prevening stores from basically stealing from consumers. As Areoplan is not dealing in cash, and it’s difficult to tell the difference, they think they can do as they please. Besides that, I find it frustrating when you try to make points reservations for Hawaii eleven months in advance and you are told all seats are filled. Like Sean, I will be looking for an alternative as well.

  • Richard Mroczek

    Joe, I as you, have over a million points. I have been a member since 1984. I find what Aeroplan and by extension Air Canada did was dishonest, we have supported this airline during the rough times and now that things are going well, they find a way to discourage loyalty. One of my favourite sayings is “Stepping over dollars to pick up pennies” and this policy change certainly fits. I am all for having points expire if you do not use the plan. There are so many opportunities to remain active. However a “shelf life” of 7yrs. is unacceptable. I wonder if they are looking at reconsidering their decision.

    Great Blog!!

  • William

    I had not used my card for sometime and as a result, as noted in the very fine print I forfeited the points and now must pay to get them back. I am certain my not using Aeroplan will not be missed by them. I do know however my Esso dealer will miss my business as I move over to someone doing Air Miles. Its when business drops that people take notice, so if less people use Aeroplan maybe they will adjust their thinking.

  • Brian

    I just found out that they had removed 57000 pts from my account in 2004. I had been saving these pts for a trip to Victoria next Feb. I had received no notice in advance of the theft. Bad faith. They have forced me to pay over $700 to buy them back which I had to do because it still was cheaper than 2 return tickets, Wpg to Victoria. I am outraged but decided to get what little I could but will not use AC again!

  • Jasmin Desmarais

    Aeroplan has surpassed itself in not respecting its best customers… just beacuse some bean counter inside the organization decided that all those points not used by US were a ”liability” for them, that they should find a way of eliminating ”it”.

    As for stripping me of my 50 000 points accumulated over the years, its like if Canadian Tire said to me: all those CT $ youve stashed on top of your refrigerator are value-less now because you’ve not used them…

    MEGA big shame. Aeroplan should be the object of a class action by its customers !

  • Doug King

    I think it’s OK for Aeroplan to impose such a policy, but just out of courtesy to their members, you’d think they would at least put a warning in the statements with the closest expiry dates for their points or at least a one month warning before points are to be deleted. Without such a warning, it’s almost as if Aeroplan wants people to let their accounts lapse so that they can improve their numbers. Great for the short term but I’m not sure if it’s a good long term policy

  • Keith Jacobs

    Here one to add to the pot, I’ve been in contact with aeroplan on behalf of my son who is a member of the canadian armed forces, Aeroplan dropped 20,000 points off of his account due to inactivity (not suprising since the canadian army is currently a pretty busy group) I spoke to a rep and pointed out that due to his service it was not possible for him to take any flights or redeem any points during that period.
    Their comment was “members of the canadian armed forces are not elligable for any special treatment” even though they are fighting on behalf of their country, wow that’s patriotic!
    Maybe if the forces started using someone other than air canada for booking they’d sit up and take notice.

  • Nancy

    I started off being a member of Canadian Airlines loyalty program and have been collecting points for the past 20 years only to find out that they expired my 25,000 points without any notice. When I phoned to enquire (and complain) I was told to write a letter and that the letter would be forwarded back to the telephone agent for review and based on their history, NO ONE (unless your under 18 – so why this age discrimation?) gets them back without paying. Why should I pay? I already paid when I bought an air ticket – choosing to fly Air Canada instead of another carrier ! Don’t bother phoning or writing because, regardless of your situation, the aeroplan agents have already been pre-programmed to say “no”. Trust me, I was on the phone with “Bosco” who towed that line and who later admitted he had made no notes of my situation to even consider or review. This loyalty program sure makes you want to be unloyal.

  • E Hudson

    I too will no longer bother with Air Canada nor Aeroplan – What a load of hooey! As above, I had not used my points for some time, in order to save them for a visit to my in-laws and I have now been told that almost 2000 flight miles have been forfeited and the rather unpleasant call taker hung up on me.
    I would appear I was less then pleasant when told the above malarky

  • Jean Leroux

    And the “sham” continues… You know how Aeroplan’s advertising states that every seat, every flight is available… Well, yes and no. Yes they are available but at a very HIGH mileage price. As a further example, I just tried to book direct flights to Florida for February 2009 (8 months ahead of time) and NO AVAILABILITY for Classic level… Yet, I check on Air Canada and all these flights are largely EMPTY at this stage (you can see from seat allocation). So, again, I call Aeroplan and they explain that less than 8% (yep, eight percent!) of seats are reserved for classic level… WHich means that not all seats are available unless you accept to pay with 5, 6 or even 7 times the normal mileage required. Boy, I wish there were other options in Canada.

  • Sam S

    I booked a trip with aeroplan a few years back (Montreal – Edmonton) and they told me that they only way to book was by booking a business class ticket. Having enough points and wanting to use them I said fine and looked forward to a business class trip.

    The trip was broken down like this, Montreal (Stops in Toronto and Regina) Edmonton…

    The first leg (the 1 hour flight) was great, I got exactly what I paid for. Afterwards the trip was on planes without business class and anyone with remotely any knowledge of geography knows that the distance between Toronto and Edmonton is much more significant than Montreal – Toronto. I called them about and they said tough luck.

    As for my future business with Aeroplan, all I can say is tough luck.

  • Ichatlots

    Just had 98,000 points “stolen” from my account because of 15 days over the 1 year expiry date.
    They said they emailed me but the emailed bounced back. Funny, I’m still getting their promo emails (same email address)
    When Air Canada goes bankrupt, I will be dancing on the roof of my house!!!!!