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Air Canada and Amex Bank of
Canada today announced that they have signed final agreements for their co-branded charge card and Membership
Rewards partnership after receiving approval on December 10th from the court overseeing Air Canada's restructuring
proceedings.
Aeroplan will become a partner in American Express's Membership
Rewards points programs and Amex will issue co-branded consumer and corporate charge
cards early in 2004, subject to customary closing conditions being met.
American Express will provide Air Canada with an $80 million cash
advance, repaid as Aeroplan Miles are purchased. In addition, American Express
committed to provide on-going marketing support throughout the term of the
contract.
"Partnering with Amex represents another critical step in the expansion
of Aeroplan," said Rupert Duchesne, President and Chief Executive Officer
of Aeroplan. "It will also allow Aeroplan to significantly grow its business
in Canada and in key international markets. We look forward to introducing,
together with our new partner, exciting products that will offer our members
additional ways to quickly accumulate valuable Aeroplan Miles."
In addition to partnering in Amex's Canadian Membership Rewards
program, Aeroplan will join American Express's U.S. Membership Rewards points program.
Aeroplan also has the opportunity to participate in Membership Rewards
programs in other markets, subject to agreement on final terms.
"Today's
announcement is such great news," said Beth Horowitz, President and CEO, Amex Bank of Canada. "This partnership is an ideal fit for our
brands and our customers, and we look forward to working with Air Canada and Aeroplan
to build our mutual businesses over the long-term."
"Partnering with Air Canada and Aeroplan means we'll have
one of the best and broadest choices of products in the Canadian marketplace."
Horowitz added.
American Express in Canada operates as Amex Bank of Canada and
Amex Canada Inc. Both are wholly owned subsidiaries of the New York based American
Express Travel Related Services Company, Inc., the largest operating unit of
the American Express Company. Amex Bank of Canada is the issuer of American
Express Cards in Canada. Amex Canada Inc. operates the Corporate Travel,
Consulting, Travel Services Network and Travellers Cheque divisions in Canada. |
