BMO to Buy Air Miles Program from Bankrupt Owner

BMO announced on Friday it has signed a purchase agreement to acquire the Air Miles Reward Program from LoyaltyOne, with the latter having filed for bankruptcy protection.

The Air Miles program has fallen to the wayside over the past few years and now BMO says this acquisition will “enable a reinvigoration for one of Canada’s largest loyalty programs.”

BMO was a founding partner of the Air Miles program since 1992. The program has roughly 10 million active collector accounts and points earned allow for airline travel and other product redemptions.

“As a leading partner, we have always believed in the value of the AIR MILES program for Canadians and are confident about the continued opportunities to build even greater customer loyalty,” said Ernie Johannson, Group Head, North American Personal & Business Banking, BMO, in a statement.

“If our acquisition of the AIR MILES business is successful, we will bring the ownership of AIR MILES home to Canada and strengthen its offering for Canadian consumers and businesses together with leading Canadian, global and online program partners and merchants,” added Johannson.

Air Miles parent owner, LoyaltyOne, filed for bankruptcy in the U.S. and Canada. The company made an ill-fated decision years ago and said unused miles would expire, causing customers to quickly redeem them over fear of losing miles. Backlash ensued and the company reversed the decision, but that didn’t help the cause. Numerous companies have ditched the Air Miles program in the past year.

The Air Miles website now has a notice that announces BMO plans to buy the rewards program. “This process will not affect collectors’ reward miles balances or their ability to collect and redeem AIR MILES reward miles,” explains Air Miles.

The Air Miles program was one way for collectors to redeem or shop for Apple products. There are only two Apple products under merchandise rewards on the site, Apple’s Magic Keyboard and Magic Trackpad.

The deal is subject to court and regulatory approvals still and other closing conditions.