Air Miles’ crash landing

In case bank executives didn’t have enough to worry about these days (read: near-collapse of Credit Suisse), the Bank of Montréal is also trying to stave off a run against Air Miles.

Catch-up: Everyone remembers Air Miles, even if you’re not totally sure what you can redeem them for these days. Once a Canadian customer loyalty kingpin, the company saw irreversible reputational damage after announcing it would start scrapping old points

  • Although the business backtracked, Canadians started to take their loyalty elsewhere. As a result, Air Miles started to lose some of its biggest retail partners.
     
  • Revenues fell by 10% in 2020 after Rona and the LCBO pulled out of the program, and took another 10% tumble last year after Safeway and Sobeys dipped.

Then came the bankruptcy filing. BMO swooped in to save Air Miles (along with members’ points) last week, but the Air Miles website has since reportedly crashed for some users last week as members rushed to redeem points that they fear might soon become worthless. 

What’s next: BMO wants to revitalize the program—the deal is still pending approval—but whether they can pull it off is anyone’s guess. The points landscape is full of players like Aeroplan and PC Optimum that are increasingly looking like a safer place to park rewards.