Aeroplan safe as Air Canada files for bankruptcy

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Aeroplan safe as Air Canada files for bankruptcy
Last Updated Tue, 01 Apr 2003 22:54:08

TORONTO - Air Canada has promised its customers that it's business as usual=
=20
as the airline files for bankruptcy protection. Clients who are already=20
travelling or who have booked with the airline should not be expecting any=
=20
changes =97 at least in the next couple of months.  "Whatever you do, make=
=20
sure that you pay with your credit card," warns Duncan Macintosh of=20
tripcentral.ca, a Hamilton-area travel company.  Macintosh says credit card=
=20
users are protected when a company doesn't follow through with a service or=
=20
product. It's in the cardholder agreement.  During the fallout from the=20
Canada 3000 bankruptcy in November 2000, just about all the customers who=20
paid with a credit card got their money back. Clients who didn't could be=20
waiting another six to eight months for compensation. Even then, refunds=20
aren't guaranteed.  Macintosh says Aeroplan members should be safe.  "The=20
airline's only asset is its customers," Macintosh told CBC News Online.=20
"Aeroplan is a gold mine. If it gets rid of that, it might as well roll up=
=20
the red carpet."

Rick Erickson, a Calgary airline analyst, agrees. He says Aeroplan is one=20
of the most viable parts of the company.
"I don't think that any of the Aeroplan frequent flyer point holders are=20
going to take any kind of a haircut. They're too valuable to the airline as=
=20
customers," says Erickson.  Macintosh says he doesn't believe there will be=
=20
trip disruptions. He says the carrier is depending on the "good will" of=20
its customers to keep it going.  Other airline analysts say consumers=20
should make sure their flights are leaving at the time they booked it at.=20
They say Air Canada will have to re-schedule some routes and reduce=20
frequency on others.  Further down the road, the carrier may pull out of=20
smaller destinations. Other airlines are expected to fill the=20
gap.  Macintosh does have some predictions for future Aeroplan rewards and=
=20
redemptions. "I think they will cut how you can earn your points and=20
they'll tighten up the redemption requirements=85make the points higher for=
=20
getting to some destinations."  Macintosh points out Aeroplan members can't=
=20
collect points while flying economy with Singapore Airlines, an alliance=20
member.  He expects that will be the case with discount flights.

Written by CBC News Online staff

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