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Air miles program grounded

Residents unable to cash in points

Jorge Barrera
Northern News Services

Yellowknife (Nov 08/00) - There is bad news for Yellowknifers planning to cash in Air Miles -- points cannot be used to purchase airline tickets.

Ian Ferrier tried to book a ticket last week but when he used his Air Miles points he was told they didn't work in Yellowknife.

"I was surprised," said Ferrier. "It would have been nice for them to let us know.

"I got a flyer in the mail about a month ago advertising Air Miles," Ferrier said.

It turns out the contract between Canadian North and Loyalty Group -- owners of the Canadian division of Air Miles -- expired after the Air Canada-Canadian Airlines merger.

Loyalty Group did not tell Canadian North about the situation and it caught the company by surprise.

Mike King, vice-president and general manager of Canadian North, said they weren't informed about the situation.

"A couple of months ago people called asking about Air Miles. We were never notified and we found out only after we doubled back with Air Miles."

King added Canadian North has held discussions with Loyalty.

Loyalty Group sells Air Miles points to businesses which then gives a specified number of points to a customer based on what they spend. Loyalty Group director of marketing, Joe Palombo, would not comment on any contract discussions but said the company will do what's needed to take care of Air Miles collectors.

"As you know there is a lot of stuff in the airline industry," he said. "We find out things at the last minute.

Palombo said Edmonton-based Calm Air, a Canadian Airlines regional carrier serving central Canada, would provide services to Yellowknife.

But Calm Air does not provide regular passenger services in the NWT.

Despite the fact that Loyalty Group currently has no contracts with any Northern airlines, Palombo said collectors will be compensated even if it means buying tickets from other airlines.