 Hello everyone, this is Amit Dan and on this channel you find financial travel and more videos. If you like what you see, please do the thumbs up and consider subscribing. Thank you. Hello everyone, this is Amit Dan of amitdan.com. Today I'll talk about Air Canada buying back airplane and what does that mean for your points. Before I start, I would like to introduce myself. This is Amit Dan and if you're watching this channel for the first time, congratulations, you found me. On this channel I do videos on travel videos, credit cards, points, miles and other videos. Utilizing credit card viewers points and miles, I travel the world for free or paying very little, mainly on business class and I document my travel and you see those videos on this channel as well. So let's start with Airplan and Air Canada. Air Canada created Airplan in 1984 to reverse its member and partner alliance members but in 2008 Air Canada sold Airplan as a separate entity. However, the partnership remained intact and members were still able to collect and redeem Airplan points on Air Canada and its alliance members. Then last year Air Canada declared that they will be separating from Airplan and they will create their own viewers program and then this year we are seeing that Airplan or sorry Air Canada is buying back Airplan again. So that's what I'll talk about today. So we all heard the news that recently Air Canada and its consortium which are made of TD, CIBC and Nissan have agreed to buy back Airplan for $450 million and they will assume the liability of the Airplan redemptions which should be at approximately $1.9 billion. So I'll talk about what it means for Air Canada to buy back Airplan. Now the members are worried that once Air Canada completes the buyback of Airplan what will happen to their points whether it's going to be devalued or not or whether there will be other cutbacks on reverse or anything. Air Canada has confirmed that the points will be transferable from Airplan to Air Canada's viewers program which they haven't announced any name yet. However they haven't mentioned anything about the transfer ratio or whether the points are going to be devalued under the new program or not. So what it means that let's say if you have 1000 Airplan you will be able to transfer it to the new viewers program which will be created by Air Canada. But they didn't mention anything or they didn't confirm that whether it's going to be transferred at one is to one ratio. So for each 1000 points you're going to get 1000 new Air Canada viewers program points or not. So that's one thing and the other thing that once the transfer or buyback completes then there might be devaluation because of the huge amount of Air Canada and its consortium. This consortium is spending on buying back Airplan and also there is the assume liability of $1.9 billion. So I can see that there is a good chance that Air Canada has to devalue Airplan to make up for the losses or for the amount for these shortfalls. So now if you're worried about what will happen to the points to your points or whether this is going to be devalued or this is going to go decreasing value or reverse once the transfer happens. The answer is no one knows anything for sure. But if it was me then I would if it was me I wouldn't be waiting to see what happens. If you right now you still have access to business class flights for Air Canada Alliance which is the Star Alliance partnership members. And you'll get very good value if you redeem your points for business class flights for those which do not charge any surcharges or fees when you redeem airplanes. So if you do that then definitely you'll get good value for your airplane. And I doubt that you're going to get better value than this after the transfer from Airplan to Air Canada's new membership programs. Because Air Canada hasn't confirmed yet that what type of yours accessibility will have that point and whether we'll be able to access the business class flights or economy flights or what type of redemption values will have. So at this point if you are able to redeem for business class flights for those partners which do not charge any fuel surcharges or fees to redeem airplane points then definitely I doubt you're not going to get the better value than that. I have redeemed airplane points for partnership members which do not charge fuel surcharges for example one of the most Turkish airlines in the past. And I got very good value I have other videos on that which I'll link provide link in the description box below. Now in terms of freight cars and other rewards programs or other freight cars which offer airplanes we do not know that whether these freight cars will continue giving the same reward structures and benefits after the transfer takes place. And I see there is a good possibility that there will be more freight cars coming up in the future with the huge sign of bonuses. So that's something I don't see you need to worry about at this point. So if you have any airplane freight cars just keep earning and in the future there might be better opportunities so keep an eye for that. And if you see something that you know which offers you better more earning opportunities or more bonuses then definitely it's a good idea to sign up for those in the future. But as of now just you know things are as usual. So if you have any airplane freight cars just like you know keep using them as usual because no one knows at this point what's going to happen for these freight cars whether they're going to be moved through a smooth transition to the new program or if their things will change. And then the other thing I'd like to mention that if you do not need to redeem anything right now, if you do not have any travel plan or anything before the end of the contract which is 2020 then there is no need to rush to redeem your points. So if you need to redeem them and try to redeem it from business class fights to get the maximum value out of your points. But if you are not able to if you don't have to redeem them then you know just keep earning them and don't rush to redeem anything because you know when you take rush decisions then they're likely it's likely that you're going to be you know making poor choices resulting lower value for your points. So at this point no need to rush on those but if possible or if you need to travel then definitely go ahead with redeeming for business class flights which will give you the most value of your airplane and I doubt that you'll get better value than this in the future. Even you know Air Canada allows you to access the business class flights with the new program and to Air Canada and its alliance partners which is the star alliance partners in the future. So that's the summary of what I wanted to talk about. So let's just go through quickly. So you're going to get the best value when you redeem airplane for business class flights using star alliance partners which do not charge fuel surcharges. And for those partners which do not charge fuel surcharges you can watch my other videos I have mentioned those partners which I'll give you a description which I'll give you a link in the description box below. And if you don't need to redeem anything or if you do not have any travel plan coming up then there's no need to rush to redeem anything. And at this point if you have those credit cards which are new airplane points there's no need to rush to cancel them or to do anything drastically so just keep you know earning them. And definitely I see there will be more credit cards coming up on the Canadian credit card market and there will be more opportunities. And no one knows at this point what transfer ratio airplane will get when it gets transferred over to the new Air Canada Rewards program. And if they will like you know devalue or if they will cut any benefits or what's going to happen. So if it was me I would be definitely redeeming my airplane to get the maximum value out of it flying business class. So that's all for today. If you like what you see please give it a thumbs up and consider subscribing and there will be more videos coming up. So I'll see you shortly. Thank you for watching. Bye.