A lot of its assets, including its frequent flyer program, Aeroplan, offer strategies to raise cash to stabilize its balance sheet and return capital to its shareholders.
Frequent flyer programs have been core marketing tools for airlines since their start in the early 1980's. Aeroplan represents an important asset for Air Canada as both a strategic as well as a financial resource that provides rewards through its profitable frequent flyer program and allows it to reap the monetary benefits of its own relationship with the Canadian Imperial Bank of Commerce (CIBC) Aerogold credit card.
On the other hand, as Aeroplan is diversifying away from the travel and airline industry into its resource requirements a broader loyalty program, organizational needs, and urge to command its cash flow aren't always aligned with those of Air Canada. Air Canada must decide how it should divest Aeroplan and what type of relationship it should have with Aeroplan after that divestment. What business and corporate relationship would best satisfy all parties concerned: Air Canada and its particular investors, on the one hand, and Aeroplan and its commercial partners on the other?
This is just an excerpt. This case is about STRATEGY & EXECUTION
PUBLICATION DATE: May 08, 2015 PRODUCT #: HEC100-PDF-ENG
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