(Adds shares, analyst comment)
May 11 Air Canada said on Thursday it
would launch its own loyalty program in 2020, replacing the
current program, Aeroplan, sending its shares to their highest
in nearly 10 years.
Shares of Canada's biggest carrier gained for the sixth
straight day and rose as much as 7.3 percent to C$15.97 in
Air Canada's contract with Aimia Inc, which owns
and operates Aeroplan, will be in effect until June 29, 2020.
The move "greatly improves" Air Canada's ability to manage
its revenue, analysts at AltaCorp Capital said in a client note.
"The new program, launching in 2020, will offer additional
earning and redemption opportunities, more personalized service
and a better digital experience for Air Canada customers,"
Benjamin Smith, president of Air Canada's passenger airlines
The airline said last week that it had not ruled out
expanding its own discounted offering to take on the new ultra
low-cost carrier planned by smaller rival WestJet Airlines
(Reporting by John Benny in Bengaluru; Editing by Martina