Hello everyone, this is financial author Amit Dunn of AmitDunn.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 AmitDunn of AmitDunn.com. Today I'll talk about what will happen to Airplan without AirCanada. It must have heard by now that AirCanada is living Airplan loyalty program and by June 2020 you'll not be able to collect or use Airplan program with AirCanada. Now before I go into further details I'd like to look at a few points about Airplan and AirCanada. Airplan has been looking after AirCanada's loyalty program for a while and Airplan has 5 million active members, 75 worldwide partners and 150 brands. However, all these members they are not aware that Airplan is a separate entity than AirCanada or Airplan is not owned by AirCanada. And most of these members they are in Airplan program for AirCanada not for Airplan. So this is questionable that without AirCanada how many of these Airplan members will stay in Airplan and wouldn't mind AirCanada living Airplan. Without AirCanada Airplan 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 AirCanada, Brasus Airlines, Thai Airlines, Singapore Airlines, Swiss Airlines, Air India and many more. These airlines offer fantastic redemption opportunities for any Redim Airplan 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. Now without AirCanada, Airplan will not have this type of opportunities to redeem and for that many members will leave Airplan because it will not offer any value or any redemption when you try to fly in business class. I'll touch in an itinerary and shot a version of the AirCanada Fair where it will show how much I paid for my trip which would usually cost $4000 to $5000 to fly from Toronto to Asia. However due to Airplan and its attachment to Star Alliance which is coming from AirCanada I paid only $61 when I redeemed my Airplan points to fly business class from Toronto to Asia. Without AirCanada, Airplan will still be able to offer flight redemption on its own. This will just like work a proprietary reverse program for example BMORIUS program or Scotia VERS program. However you'll not be able to fly business class being 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 Airplan just to redeem flights for regular redemption not on business class paying much lesser. All the banks who are issuing Airplan freight cars for example TDI, CIVC, American Express they'll be reluctant to renew its contract with Airplan once its existing terms expire. And there are other retailers who are using Airplan program to revert their clients and these retailers will be also reluctant to renew Airplan's contract once the existing contracts expire. Definitely Airplan will have to come up with new freight cars with a new partner or several new partners but this is questionable how many of the clients will willing to accept that type of freight car where Airplan is no longer means flying with AirCanada 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 cars from AirCanada once the existing contract expires in 2020 and then Airplan will have to come up with new freight cars with new partners and both of these companies will start attracting new clients or keep existing clients fiercely among other freight car companies or other loyalty programs in Canada. What it means that more competition better opportunities for clients and you'll offer you'll be able to see more rewards, more bonus points, more freight cars with more opportunities in the future. So this splitting up between AirCanada and Airplan 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 Airplan and I'll put a link on top of this video and watch those videos if you are interested to know more about Airplan 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.