Stranger

You are indeed correct. I include myself among those who wanted this to happen. But I was unwilling to believe it would.

It appears the amounts paid by AE to AC for tickets may have quite a bit lower than I imagined...

KenHamer

That's how I burned the bulk of my miles in 2011. Mostly on LH.



You can invent. I prefer destructive testing.



It's only a "story" if you believe AC.




But what's the catch?

InTheAirGuy

This.

I would expect that behind the scenes is an unholy mess of a divorce, and that their hands are pretty much tied to do anything up until the date of.

mikeycanuk

Looks like the AIM dead cat bounce is dead. Heading for a new record low.

JustSomeGuy1978

If CC earners are the problem than why are people saying that Air Canada needs to partner with a bank (I.E. CC spending)?

One would think that the aim would be a pure FF model where status is gained on flights flown and money spent within the airline/alliance group

martyYOW

Because today AE is the one who reaps the benefit of selling points to the Credit Card issuers. AC has missed out on this revenue stream because they don't own their own FFP. My guess is that this is the main driver for the decision to break with AE. Take a look at the US carriers:

https://www.bloomberg.com/news/artic...les-than-seats

AC needs to bring the program in house.

canadiancow

Exactly. It's not that credit card points are bad. They're just bad when Aeroplan makes $10x from selling them, but only passes along $x to AC.

24left

Thread from March 31

http://www.flyertalk.com/forum/air-c...han-seats.html

As I wrote in the OP:

I loved the sub-headline:
"The golden goose isn’t your ticket or bag fee—it’s the credit card you use to collect frequent flier miles."

jerryhung

Indeed
AIM -12% to $3.14 day low and almost 52w low ($3.13)
AC +5% with $17.04 day HIGH

As some mentioned elsewhere, AIM Preferred shares are relatively stable, interesting enough

KenHamer

So how much better would everyone (exceot Aimia) have been if AC had never disposed of Aeroplan?

rehoult

Seeing as that spinoff gave them the cash they desperately needed to replace their long haul fleet and undertake the XM project, probably not much better.

KenHamer

Not "much" better?

So just a little better, then?

Jma12

wow I thought they will stabilize around 3.5-4.0 by now. If they drop below $2, I will need to burn off my AP immediately.

Guava

And yet, as of yesterday, this is what some Sell Side Research Analysts were saying:

Source

That was yesterday, May 15th. Today, a wave of these Sell Side analysts had a sudden change of heart after trying to hold out for days.

Based on today's closing price, Aimia has a dividend yield of 25.157%, that is if anyone believes it can continue to maintain the current payout. In plain English, this payout ratio cannot possibly be sustainable under any stretch of imagination. Remember that from a taxation view point, dividend payment from a qualified Canadian company is tax efficient. In theory, Aimia should be extremely attractive to a value and/or dividend investor. So clearly, this payout ratio cannot be maintained and why it won't be maintained is evidently a question of liquidity and future profitability. If dividend payout ratio needs to be drastically reduced or outright eliminated, then share prices will likely face further downward pressure even if at this point, the market has already factored the strong probability that such event may occur in the future - the market may not yet priced it in completely because no one knows for sure the magnitude or when it would take place.

This is not all that different to us here, wondering how long Aeroplan will remain afloat and whether the redemption tickets both on AC, *A and other airline partners will be protected in the event Aimia goes under. If and when Aimia eliminates its dividend payout entirely, it would signal to the market and to us, FFs and points collectors, that it's time to brace for impact and to those clinging on to "business as usual": Get your "behind" off the ship or sink with it!

longtimeflyin

Is there a list of Star Alliance partners that would get paid by Aimia only after a trip is made?

As per upthread, there is monthly reconciliation between Air Canada and Aeroplan.

Basically - should we be worried about our Aeroplan redemptions on non Air Canada airlines for travels not yet partaken given where Aimia's stock price is and a potential 'bankruptcy'?