Aeroplan's new redemption schedule for short-haul flights out of the North came at the request of the newly merged airlines, confirmed Sandie Dexter, manager of corporate communications for Air Canada in Vancouver.

She could not confirm the date of the request, but the move came only weeks before First Air bought NWT Air.

The points required to claim a short-haul flight on Air Canada or any of its regional airline partners was recently changed from 15,000 points to 25,000 points, but only for travel originating in the NWT and Yukon.

The change was made because the points were "unrealistically low" and it was to bring it in step with the rest of the country for distances in the reward chart, said Dexter.

Air Canada "has the right to modify the terms and conditions of the program -- which includes reward charts," she said.

The Aeroplan system allows customers to accumulate points through travel or CIBC Visa's Aerogold card -- to be used toward free air travel.

Rankin's Bob Crawford called the changes "unfair" and "unethical," in that "it harms every customer who used their Aerogold cards in good faith."

Dexter said "we will certainly investigate it," referring to a letter of complaint written by Crawford.

According to Aeroplan's brochure, the current reward schedule for short hauls remains in effect until Sept. 1, 1997.

The changes "have a seriously negative impact on every person who lives in the Central Arctic, who uses the CIBC Visa Aerogold card," said Crawford.

As a result, Northerners who used to fly between Rankin Inlet and Winnipeg or between Yellowknife and Edmonton for 15,000 points will have to give up 25,000, he says.

"The thing that burned me is that I don't see this applied to the South," said Crawford. It's only Northerners that are being hit by the change. "We pay unusually high airfares to begin with. We pay more for each fare than you would pay to travel to Europe from southern Canada," he said.

"I feel the whole thrust of this is to facilitate the sale of NWT Air to Makivik Corporation's First Air.

By devaluing air miles by almost half, there's less of a liability First Air takes on," Crawford said. "I think it's purely and simply to the benefit of First Air in the sale."

"Any airline who uses an air miles scheme to attract customers, accumulates a significant liability on their books, which is directly related to their future cost of honoring the delivery of those air miles to their customers," he wrote in his letter to CIBC Visa.

After recent negotiations, First Air announced it was buying NWT Air last month.

"It does not take much of a stretch to realize that by altering the 'short-haul' destinations for our region, Air Canada has reduced their accumulated Air miles liabilities by nearly 50 per cent."

Crawford accumulated his points through CIBC Visa's Aerogold card. "We purposely conduct our business to facilitate Aeroplan -- some of our large transactions go through CIBC Visa's gold card," he said.

Andy Campbell, vice-president of First Air, was not available for comment.

Crawford wrote to CIBC Visa's customer service office in Vancouver on June 20, addressing the letter to Joan Fan.

Fan said she faxed a copy of the letter to Visa's Toronto office.

CIBC Visa consultant for national media relations in Toronto, Paul Howard, said he has seen the letter and it's been forwarded to Aeroplan via the card products division. No response had been received at News/North's deadline.