CIBC considering Aeroplan options
May 30, 2013, 9:33 pm
#46
Original Member
Join Date: May 1998
Location: Vancouver, Canada
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And it came to pass that nothing came to pass...
Negotiating ploys, nothing more. AP starts dropping hints it's looking for a new card partner. CIBC responds by dropping hints it's looking for a new points partner. Neither have palatable alternatives.
Come this time next year things will be the same (at least on the outside.)
And it came to pass that nothing came to pass...
Negotiating ploys, nothing more. AP starts dropping hints it's looking for a new card partner. CIBC responds by dropping hints it's looking for a new points partner. Neither have palatable alternatives.
Come this time next year things will be the same (at least on the outside.)
May 30, 2013, 11:33 pm
#47
Join Date: Feb 2007
Location: YVR
Programs: Erstwhile Accidental AC E35K
Posts: 2,916
Non-event for me. I dumped Aerogold about 10 years ago because of the non-availability of award seats. I occasionally get accosted by the CIBC touts in the airports, and when I explain why I dumped they always insist it's better now. Utter crap! And now we have scam charges to boot.
The word schadenfreude comes to mind.
The word schadenfreude comes to mind.
May 31, 2013, 7:26 am
#48
Join Date: Mar 2013
Posts: 252
Interesting quote in the Globe;
"CIBC gets a great deal from Aimia. While Aeroplan charges new entrants 1.5 cents per point and 1.24 cents on average, “CIBC, as the program’s key accumulation partner, is obviously paying less” although the size of the discount is unknown, a pair of National Bank Financial analysts said in a note last month."
Hard to believe that companies are paying 1.5 cents to buy AE miles!!
I tend to think this is all just negotiating between CIBC and AE. A much bigger threat to AE is the upcoming Competition Bureau ruling on credit card fees - which could potentially allow retailers to charge consumers extra for using premium cards.
"CIBC gets a great deal from Aimia. While Aeroplan charges new entrants 1.5 cents per point and 1.24 cents on average, “CIBC, as the program’s key accumulation partner, is obviously paying less” although the size of the discount is unknown, a pair of National Bank Financial analysts said in a note last month."
Hard to believe that companies are paying 1.5 cents to buy AE miles!!
I tend to think this is all just negotiating between CIBC and AE. A much bigger threat to AE is the upcoming Competition Bureau ruling on credit card fees - which could potentially allow retailers to charge consumers extra for using premium cards.
May 31, 2013, 7:35 am
#49
Join Date: May 2012
Location: BKK/SIN/YYZ/YUL
Programs: DL, AC, Bonvoy, Accor, Hilton
Posts: 2,920
A "B" bank such as ING Canada might try and step up.
ING doesn't have a bricks and mortar position but is the 8th largest in Canada. Or, the Credit Unions/Caisse Populaires might make a move. There is a possibility the CC could also use Master Card and not Visa as the platform.
ING doesn't have a bricks and mortar position but is the 8th largest in Canada. Or, the Credit Unions/Caisse Populaires might make a move. There is a possibility the CC could also use Master Card and not Visa as the platform.
May 31, 2013, 7:40 am
#50
Join Date: Jan 2007
Location: Toronto
Programs: AC*E50
Posts: 594
A "B" bank such as ING Canada might try and step up.
ING doesn't have a bricks and mortar position but is the 8th largest in Canada. Or, the Credit Unions/Caisse Populaires might make a move. There is a possibility the CC could also use Master Card and not Visa as the platform.
ING doesn't have a bricks and mortar position but is the 8th largest in Canada. Or, the Credit Unions/Caisse Populaires might make a move. There is a possibility the CC could also use Master Card and not Visa as the platform.
Could easily be a MasterCard or even an Amex.
May 31, 2013, 7:48 am
#51
Join Date: Aug 2010
Location: Why? Why? Zed! / Why? You? Elle! / Gee! Are You!
Programs: Irrelevant
Posts: 3,543
Although all of what they were proposing to offer would have been of little benefit to me. I already have status, always fly in J usually on C/D/Z and the occasional J & F fares.
I would really like some better ways to actually use all the miles I have accumulated, but at this point I am content to let the liability sit on the books of Aimia.
May 31, 2013, 7:56 am
#52
FlyerTalk Evangelist
Join Date: Oct 2011
Location: Anywhere I need to be.
Programs: OW Emerald, *A Gold, NEXUS, GE, ABTC/APEC, South Korea SES, eIACS, PP, Hyatt Diamond
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Interesting quote in the Globe;
"CIBC gets a great deal from Aimia. While Aeroplan charges new entrants 1.5 cents per point and 1.24 cents on average, “CIBC, as the program’s key accumulation partner, is obviously paying less” although the size of the discount is unknown, a pair of National Bank Financial analysts said in a note last month."
Hard to believe that companies are paying 1.5 cents to buy AE miles!!
I tend to think this is all just negotiating between CIBC and AE. A much bigger threat to AE is the upcoming Competition Bureau ruling on credit card fees - which could potentially allow retailers to charge consumers extra for using premium cards.
"CIBC gets a great deal from Aimia. While Aeroplan charges new entrants 1.5 cents per point and 1.24 cents on average, “CIBC, as the program’s key accumulation partner, is obviously paying less” although the size of the discount is unknown, a pair of National Bank Financial analysts said in a note last month."
Hard to believe that companies are paying 1.5 cents to buy AE miles!!
I tend to think this is all just negotiating between CIBC and AE. A much bigger threat to AE is the upcoming Competition Bureau ruling on credit card fees - which could potentially allow retailers to charge consumers extra for using premium cards.
May 31, 2013, 10:04 am
#54
FlyerTalk Evangelist
Join Date: Feb 2000
Posts: 12,068
May 31, 2013, 11:12 am
#55
Join Date: Nov 2011
Posts: 6,385
Interesting quote in the Globe;
"CIBC gets a great deal from Aimia. While Aeroplan charges new entrants 1.5 cents per point and 1.24 cents on average, “CIBC, as the program’s key accumulation partner, is obviously paying less” although the size of the discount is unknown, a pair of National Bank Financial analysts said in a note last month."
Hard to believe that companies are paying 1.5 cents to buy AE miles!!
I tend to think this is all just negotiating between CIBC and AE. A much bigger threat to AE is the upcoming Competition Bureau ruling on credit card fees - which could potentially allow retailers to charge consumers extra for using premium cards.
"CIBC gets a great deal from Aimia. While Aeroplan charges new entrants 1.5 cents per point and 1.24 cents on average, “CIBC, as the program’s key accumulation partner, is obviously paying less” although the size of the discount is unknown, a pair of National Bank Financial analysts said in a note last month."
Hard to believe that companies are paying 1.5 cents to buy AE miles!!
I tend to think this is all just negotiating between CIBC and AE. A much bigger threat to AE is the upcoming Competition Bureau ruling on credit card fees - which could potentially allow retailers to charge consumers extra for using premium cards.
I would say sub 1 cent...
May 31, 2013, 1:21 pm
#56
Join Date: Sep 2012
Location: YYZ (YUL/LHR)
Programs: AC - E50, CX - G, Accor Plat, SPG Gold
Posts: 903
Just goes to show how bad the CIBC product is from a consumer value perspective.
Presuming they have a deep discount around 0.8c per mile, their sign up bonus of 15k costs $120 = annual fee and their reward payouts are 0.8% and 1.2% on bonus categories, compared to the cost of other programmes giving rewards like Cap 1 Aspire, CIBC are raking it in! And there must be 10 Aero cards out there for every Aspire, I would even venture a number closer to 50.
May 31, 2013, 1:27 pm
#57
Join Date: Apr 2000
Location: Mississauga Ontario
Posts: 4,104
CTV NEWS ON CIBC AEROPLAN POTENTIAL SPLIT
"CIBC (TSX:CM) says it has taken steps to create alternative options in case it decides not to renew its Aeroplan credit card agreement with Aimia, which is set to expire at the end of the year.
"While the launch of the alternative card would result in short-term costs for CIBC, we believe it would generate benefit over the longer term for our clients and shareholders," CIBC president and chief executive Gerry McCaughey said during a conference call Thursday"
"CIBC (TSX:CM) says it has taken steps to create alternative options in case it decides not to renew its Aeroplan credit card agreement with Aimia, which is set to expire at the end of the year.
"While the launch of the alternative card would result in short-term costs for CIBC, we believe it would generate benefit over the longer term for our clients and shareholders," CIBC president and chief executive Gerry McCaughey said during a conference call Thursday"
Man, I gotta become a CEO. You just get paid for being stupid!
May 31, 2013, 1:47 pm
#58
Join Date: Feb 2005
Posts: 7,156
CIBC probably has many unhappy Aerogold cardholders who have found out, after collecting for many years, that there is simply no seat available for redemption. When they are lucky to be able to redeem seats, they are probably shocked at the charges.
You can have all the points in the world but what good are they if there is no seat to redeem.
You can have all the points in the world but what good are they if there is no seat to redeem.
May 31, 2013, 1:56 pm
#59
Join Date: Nov 2011
Posts: 6,385
What"s this about DM for 1.1c ???
Just goes to show how bad the CIBC product is from a consumer value perspective.
Presuming they have a deep discount around 0.8c per mile, their sign up bonus of 15k costs $120 = annual fee and their reward payouts are 0.8% and 1.2% on bonus categories, compared to the cost of other programmes giving rewards like Cap 1 Aspire, CIBC are raking it in! And there must be 10 Aero cards out there for every Aspire, I would even venture a number closer to 50.
Just goes to show how bad the CIBC product is from a consumer value perspective.
Presuming they have a deep discount around 0.8c per mile, their sign up bonus of 15k costs $120 = annual fee and their reward payouts are 0.8% and 1.2% on bonus categories, compared to the cost of other programmes giving rewards like Cap 1 Aspire, CIBC are raking it in! And there must be 10 Aero cards out there for every Aspire, I would even venture a number closer to 50.
That's why this is purely speculation. The contract is profitable for both parties so I have no idea why they wouldn't renew.
http://boardingarea.com/blogs/viewfr...es-in-october/
May 31, 2013, 2:25 pm
#60
Join Date: Sep 2010
Location: Canadia
Programs: A loyal Amerisuites customer... oh wait
Posts: 2,033
(Repeat of an earlier question. I think it's legit, so I'm gonna ask it again.)
I place a moderate value on Aeroplan points. I haven't had a CIBC Aeroplan card for a few years, and am considering a churn. What's the best strategy here?
A: Apply for a CIBC Aeroplan card now. Get 15,000 miles. In the event that CIBC's agreement with Aeroplan ends, CIBC should offer some kind of incentive to cardholders to keep a card that no longer earns Aeroplan points.
B: Wait it out. Expect both CIBC and Aeroplan or their new suitor to enter a "war" with better incentives.
C: It's not worth the hit to my credit limit; stick with generating Aeroplan miles through Amex.
What would you do?
I place a moderate value on Aeroplan points. I haven't had a CIBC Aeroplan card for a few years, and am considering a churn. What's the best strategy here?
A: Apply for a CIBC Aeroplan card now. Get 15,000 miles. In the event that CIBC's agreement with Aeroplan ends, CIBC should offer some kind of incentive to cardholders to keep a card that no longer earns Aeroplan points.
B: Wait it out. Expect both CIBC and Aeroplan or their new suitor to enter a "war" with better incentives.
C: It's not worth the hit to my credit limit; stick with generating Aeroplan miles through Amex.
What would you do?