 Hello everyone, this is financial author Amit Dan of amitdan.com. On this channel you'll find financial travel and more videos just like the one you're watching right now. If you like what you see please give me the thumbs up and consider subscribing. Hello everyone, this is financial author Amit Dan of amitdan.com. Today I'll talk about what will happen to Aeroplan without Air Canada. You must have heard by now that Air Canada is living Aeroplan loyalty program and by June 2020 you'll not be able to collect or use Aeroplan program with Air Canada. Now before I go into further details I'd like to look at a few points about Aeroplan and Air Canada. Aeroplan has been looking after Air Canada's loyalty program for a while and Aeroplan has 5 million active members, 75 worldwide partners and 150 brands. However all these members they were not aware that Aeroplan is a separate entity than Air Canada or Aeroplan is not owned by Air Canada and most of these members they're in Aeroplan program for Air Canada not for Aeroplan. So this is questionable that without Air Canada how many of these Aeroplan members will stay in Aeroplan and wouldn't mind Air Canada living Aeroplan. Without Air Canada Aeroplan will lose its access to Star Alliance program. Star Alliance is the world's largest alliance which has 27 members and some of these members are Air Canada, Brussels Airlines, Thai Airlines, Singapore Airlines, Switzerland Airlines, Air India and many more. These airlines offer fantastic redemption opportunities when you redeem Aeroplan to fly business class. For example I have a trip coming up in November for which I'll be flying from Toronto to Istanbul and Istanbul to Dhaka Bangladesh on business class for only 61 dollars. Now without Air Canada Aeroplan will not have this type of opportunities to redeem and for that many members will leave Aeroplan because it will not offer any value or any redemptions when you try to fly in business class. I'll attach in an itinerary and short version of the fare where it will show how much I paid for my trip which would usually cost 4,000 to 5,000 dollars to fly from Toronto to Asia. However due to Aeroplan and its attachment to Star Alliance which is coming from Air Canada I paid only 61 dollars when I redeemed my Aeroplan points to fly business class from Toronto to Asia. Without Air Canada Aeroplan will still be able to offer flight redemptions on its own. This will just like work a proprietary reverse program for example BMO reverse program or Scotia reverse program. However you will not be able to fly business class paying very little because it will not be attached to any alliances where you can redeem points for business class for very little money. So for that reason it will lose its value among the members and it's questionable how many members will stick to Aeroplan just to redeem flights for regular redemption not on business class paying much lesser. All the banks who are issuing Aeroplan credit cards for example TD CIBC American Express they'll be reluctant to renew its contract with Aeroplan once its existing terms expire and there are other retailers who are using Aeroplan program to reward their clients and these retailers will be also reluctant to renew Aeroplan's contract once the existing contracts expire. Definitely Aeroplan will have to come up with new credit cards with a new partner or several new partners but this is questionable how many of the clients will willing to accept that type of credit card where Aeroplan is no longer means flying with Air Canada or other redemption value where you can fly business or first class for very little. So all these points I just mentioned and many more will lead more competition for example there will be more or newer cards from Air Canada once the existing contract expires in 2020 and then Aeroplan will have to come up with new credit cards with new partners and both of these companies will start attracting new clients or keep existing clients fiercely among other credit card companies or other loyalty programs in Canada. What it means that more competition better opportunities for clients and you will offer you'll be able to see more rewards more bonus points more credit cards with more opportunities in the future. So this splitting up between Air Canada and Aeroplan will open up new opportunities for clients and this is a good thing because more competition means better opportunity and newer options. I do have other videos on Aeroplan and I'll put a link on top of this video and watch those videos if you are interested to know more about Aeroplan and other travel rewards programs. Thank you for watching and if you like what you see please give it a thumbs up and consider subscribing because on this channel you'll find articles like you just watch right now and there will be more to come that's all for now thank you