Did Air Miles go bankrupt in Canada?
Lower than a day after phrase received out that Loyalty Ventures Inc., the U.S. father or mother firm of the Air Miles Reward Program, was getting ready to file for chapter, BMO Monetary Group stepped as much as purchase this system, at a value of USD$160 million.
We’re excited to share that BMO, our anchor associate, has introduced its intention to accumulate AIR MILES, the main loyalty program, topic to court docket approval. To learn extra about this information go to https://t.co/BMXunXuJql.
— AIR MILES Reward Program (@AIRMILES) March 10, 2023
Does Air Miles nonetheless exist? Are you able to redeem the rewards?
Sure, Air Miles continues to be round, and it needs to be for some time but, due to BMO. “As a founding associate of the Air Miles program since 1992, BMO is nicely positioned to strengthen and develop Canada’s most acknowledged loyalty program,” in accordance with a BMO assertion issued on the morning of March 10. (The acquisition continues to be topic to court docket and regulatory approval.)
For a number of hours between March 9 and the official bulletins from BMO and Loyalty Ventures on the morning of March 10, collectors had been in the dead of night in regards to the destiny of their Air Miles. Twitter and Reddit customers urged one another to money of their miles ASAP. Nonetheless, for a lot of collectors, the webpages the place they normally redeem their Air Miles for “eVouchers” (digital present playing cards) and merchandise returned solely server errors. Guests had been additionally unable to view claimed vouchers of their accounts. Finally, the error messages had been changed with a generic be aware about scheduled upkeep.
At 9:40 a.m. on March 10, Air Miles tweeted that its redemption website was up and working, which we’ve confirmed. The identical day, a message added to the Air Miles house web page introduced BMO’s intention to accumulate this system and reassured guests that the method “won’t have an effect on collectors’ reward miles balances or their skill to gather and redeem Air Miles reward miles.”
Liquidated 33000 @airmiles yesterday resulting from imminent chapter. Now BMO is stepping in to avoid wasting #airmiles. What to do. I’ve as much as 24hrs to cancel my orders and maintain my “dream miles”
— Mike van der Velden (@mikevdvelden) March 10, 2023
What occurred to Air Miles
Air Miles is without doubt one of the nation’s largest loyalty packages—its 10 million accounts symbolize practically two-thirds of Canadian households. Collectors earn reward miles at all kinds of outlets and thru credit score and debit playing cards, and they are often redeemed for merchandise, journey, leisure and a variety of vouchers for manufacturers like Hole, Decathlon, H&M, The Supply and a collection of eating places. Collectors can even redeem Air Miles for money rewards at in-store companions equivalent to Metro and Shell. (Companions range by province or territory.)
It’s unclear what adjustments we’ll see, if any, to standalone Air Miles playing cards, however BMO has supplied Air Miles bank cards for a few years—2022 was the 30th anniversary of its partnership with this system. And the financial institution said that the proposed acquisition “can be a made-in-Canada alternative to allow a reinvigoration for considered one of Canada’s largest loyalty packages.”
That reinvigoration is sorely wanted. The Air Miles program has suffered setbacks previously two years, notably the departure of main retailers in the summertime of 2022: Staples and Empire Co. Ltd.—proprietor of the Sobeys and Safeway grocery store chains. Staples now affords its personal loyalty program, and Empire grew to become a co-owner of the Scene+ program. In 2021, the Liquor Management Board of Ontario (LCBO) additionally left Air Miles, however to work with Air Miles’ competitor Aeroplan. Lowe’s Canada additionally left in 2021; it joined RBC’s Avion Rewards program in September 2022.