Originally Posted by
Guava
Oh? You have a lot more trust in AC than some of us here, it seems. Even back in the early 2000s when AC and AE were one, annual `enhancements` have never taken a pause. Don`t believe me? Try dig up some antiquate threads and read them. If you do, you`d understand Ken and Dorian`s reactions.
Oh I've been around long enough to be very aware of all the "enhancements". I'm not saying the program will be better, I'm saying there is more than a remote possibility that it
could become better. I agree AC's track record in this regard is less than stellar - but we will see.
Originally Posted by
Guava
Maybe from an accounting perspective, it ain`t so bad except we don`t live inside a big spreadsheet. The danger here is the question of customer loyalty and retention. Many SEs, arguably they are the bread and butter of AC, are now forced to find a new FFP in lieu of Aeroplan until such time AC actually comes up with their own FFP because any miles they accumulate in Aeroplan from now on runs the risk of not being recognized by AC in 3 years and they will essentially become Air Miles or worse, turns into dust overnight if Aimia goes under. If AC thinks they will all come back to the AC FFP in 3 years, I have a bridge to sell.
Agree. I think it will be very important for AC to clarify their intentions quickly - especially with regards to potentially stranded aeroplan miles.
Originally Posted by
Guava
And being accused of market manipulation with such a well timed announcement? Not bloody likely. If and when AC decides to buy AE at fire sale, expect some major lawsuits from AE shareholders.
I don't think AC will buy AE. If you re-read my post I said they could pay Aimia to
operate the program that they AC would own - just as Aeroplan currently operates altitude for AC.
Originally Posted by
Guava
This argument actually counts heavily against AC. There was indeed a time Aimia was worth more than AC, which again underscored the why AC spun off Aeroplan in the first place. What makes you think AC won`t attempt to spin off its FFP again à la Aeroplan? Fool me once, shame on me, fool me twice...
They may indeed do that if they get in desperate financial straights. Didn't kill me last time they did it, wouldn't kill me if they did it again.
Originally Posted by
Guava
But their actions matter. If it is determined that AC`s move today is a form of market manipulation, hoping that AE will go under and thereby wiping out the said liabilities which could be indirectly linked to AC, there will be fireworks, just not the good ones. I have a feeling AE will not go down without a fight and if AE must die, it will likely want to drag AC down to hell with it, just a hunch.
I don't believe AE will go down. It will survive as a smaller, less profitable program that competes with Air Miles and whatever AC names its new program.
Originally Posted by
Guava
Something tells me the Canadian Courts will place the rights of millions of consumers above such contractual obligations.
We don't live in a populist nirvana. Something tells me the Canadian courts will uphold the law.
Originally Posted by
GUWonder
Which percentage of Aimia shares is currently held by AC?
Zero.
Originally Posted by
PB53x11
Right. The points are a liability for AE. So if they transfer to New FFP, the liability becomes a liability for AC. Who presumably would want to be paid for taking on that liability. So unless I'm missing something, I'm with Fiordland - AE (Aimia) would have to write a cheque to AC.
You and Fiordland are correct. Can't see AE wanting to write a big cheque when they can give people toasters instead.