Should More Airlines Spin Off Their Loyalty Programs?
Skift Take
Joseph DeNardi, an analyst with Stifel, is passionate about his thesis — that airlines should sell their frequent flyer programs. Yes, an airline can make money doing so. But airlines that don't operate their own programs sometimes get into trouble. They have far less data about customers than their competitors. And in 2017, access to data is a big deal.
When Air Canada made its frequent flyer program an independent company in 2002, many insiders expected other airlines would follow, spinning off profitable loyalty schemes.
Airlines could raise cash — they needed it in the early 2000s more than today — and they would no longer need to run businesses that didn't mesh with their core mission of transporting passengers.
Fifteen years later, few airlines express interest in selling one of their most lucrative assets. Even Air Canada, which by 2008 no longer had any investment its program, Aeroplan, is bringing loyalty back in-house. Aeroplan's current owner, Aimia, will keep the name and the data, but by 2020 Air Canada will start anew with a fresh program.
However, one influential investment analyst said this week he expects the trend to return. Joseph DeNardi of Stifel, who tracks loyalty programs, said in a res
