Aug 21, 2018, 8:23 am
Last edit by: yyznomad
For those of you interested only in the revised $450-million deal and related discussion, it starts on post 418:
https://www.flyertalk.com/forum/air-canada-aeroplan/1926409-update-aimia-accepts-air-canada-td-cibc-visa-revised-450-million-aeroplan-bid-28.html#post30109427
https://www.flyertalk.com/forum/air-canada-aeroplan/1926409-update-aimia-accepts-air-canada-td-cibc-visa-revised-450-million-aeroplan-bid-28.html#post30109427
Update: Aimia accepts Air Canada, TD, CIBC & Visa revised $450-million Aeroplan bid
Aug 2, 2018, 12:30 pm
#241
Join Date: Sep 2009
Location: YYZ
Programs: AC SE MM, Bonvoy Plat, Hilton G,Nexus, Amex MR Plat,IHG Plat
Posts: 4,428
Aug 2, 2018, 2:39 pm
#242
Join Date: Jul 2013
Location: Toronto
Programs: AC, UA, IHG, SPG, Carlson
Posts: 193
So in your world view, Aimia are an innocent victim in this?
OK, but that's not my view. My read is that Aimia was spun off as a separate business a full 15 years ago. For that entire time, they have known that the contract with AC was up for renewal (and thus, potentially ending) in 2020. Despite this knowledge, in 15 years Aimia failed to diversify their customer base. Now, their primary customer is walking away, and Aimia are in desperate straits as a result.
If Aimia had done a proper job of diversifying and expanding their operations and their customer base, then the loss of a single customer (AC) would not have had a significant impact on their stock price. AC may still have wished to purchase the Aeroplan assets, in order to ease the transition of their (AC) customers from Aimia's loyalty program to AC's loyalty program .... but if Aimia had done a proper job over the past 15 years, then AC would have had to pay a premium for those assets.
The collapse of Aimia's stock price is entirely due to Aimia's lack of execution and business accumen over the past 15 years. Your anger (Dirty, Sleazy, Betrayal) seems like a reasonable set of emotions for how an Aimia shareholder should be feeling about the Aimia board. AC were just a customer who decided to walk away.
OK, but that's not my view. My read is that Aimia was spun off as a separate business a full 15 years ago. For that entire time, they have known that the contract with AC was up for renewal (and thus, potentially ending) in 2020. Despite this knowledge, in 15 years Aimia failed to diversify their customer base. Now, their primary customer is walking away, and Aimia are in desperate straits as a result.
If Aimia had done a proper job of diversifying and expanding their operations and their customer base, then the loss of a single customer (AC) would not have had a significant impact on their stock price. AC may still have wished to purchase the Aeroplan assets, in order to ease the transition of their (AC) customers from Aimia's loyalty program to AC's loyalty program .... but if Aimia had done a proper job over the past 15 years, then AC would have had to pay a premium for those assets.
The collapse of Aimia's stock price is entirely due to Aimia's lack of execution and business accumen over the past 15 years. Your anger (Dirty, Sleazy, Betrayal) seems like a reasonable set of emotions for how an Aimia shareholder should be feeling about the Aimia board. AC were just a customer who decided to walk away.
Aug 2, 2018, 2:50 pm
#244
Suspended
Join Date: Nov 2007
Location: YVR
Programs: Air Canada Super Elite 2+ Million Miles
Posts: 2,478
Aug 2, 2018, 2:55 pm
#247
Join Date: Jun 2018
Location: YVR
Programs: AC SE100K, Bonvoy Platinum Elite, IHG Gold, Hertz 5*
Posts: 2,132
And the Aimia board has just completed a 2.5 hour "working lunch". At present they are tied up with trying to decide where to dine and imbibe for dinner. In about 6 hours they will suddenly realize they actually have to make a decision. Given their consistent ability to do virtually everything incorrectly, some half-drunk nitwit will say "AC is bluffing. Let's leave it for tomorrow."
Aug 2, 2018, 2:57 pm
#248
Join Date: Nov 2017
Posts: 3,359
And the Aimia board has just completed a 2.5 hour "working lunch". At present they are tied up with trying to decide where to dine and imbibe for dinner. In about 6 hours they will suddenly realize they actually have to make a decision. Given their consistent ability to do virtually everything incorrectly, some half-drunk nitwit will say "AC is bluffing. Let's leave it for tomorrow."
Aug 2, 2018, 3:14 pm
#249
A FlyerTalk Posting Legend
Join Date: Sep 2012
Location: SFO
Programs: AC SE MM, BA Gold, SQ Silver, Bonvoy Tit LTG, Hyatt Glob, HH Diamond
Posts: 44,353
They might have one seat available per month at those rates if they care to meet the advertising speculation.
But someone with more knowlage of magic may be able to explain how they could possibly continue at the same redemption rate in some useful inventory when they no longer have access to Air Canada's empty seats.
But someone with more knowlage of magic may be able to explain how they could possibly continue at the same redemption rate in some useful inventory when they no longer have access to Air Canada's empty seats.
So instead of a cheap ticket being 23k miles, it will now be max(actual cost, 25k). Which will result in a bunch of 25k redemptions becoming available.
Aug 2, 2018, 3:24 pm
#250
Join Date: Nov 2017
Posts: 3,359
For instance, here's one of those market fare offers that cost less than the standard redemption:
Here's that same itinerary on flights:
Are you telling me it is worth forking out 20,000+ points to save $100 on a fare and forgo all the benefits of purchasing a revenue ticket such as RDM, elite milage and BIS accrual? I think not!
I can certainly understand why people are burning their Aeropesos left and right since they have no sense what the value of those will be under a new program, especially when you have bogus fees like carrier surcharge that eat away at the benefit of spending miles in the first place (if I'm going to spend money on a fare I may as well earn status!).
Safe Travels,
James
Aug 2, 2018, 4:07 pm
#251
Join Date: Dec 2008
Location: Delta, BC
Posts: 1,646
AC was 16% of gross billings (points accumulation) in 2017. Credit/charge cards combined (TD, CIBC, AMEX) are 52%.
AC/Star Alliance was 71% of redemption costs in 2017.
The reliance on AC for redemption is clearly the weak spot and the perceived and historical link between the Credit/Charge card business is a surely a sore-point between those partners, AC and Aeroplan.
Aug 2, 2018, 6:37 pm
#252
Join Date: Mar 2014
Location: Canada
Programs: AC SE100k, Marriott Titanium Elite, Accor Platinum, National Executive Elite
Posts: 349
Aimia said no.
"Takeover negotiations between Air Canada and Aimia Inc., the parent company of the Aeroplan loyalty rewards program, have broken off.
Air Canada and its three financial partners raised their initial bid for the loyalty plan to $325-million, however, Aimia is demanding $450-million, according to Aimia."
"Takeover negotiations between Air Canada and Aimia Inc., the parent company of the Aeroplan loyalty rewards program, have broken off.
Air Canada and its three financial partners raised their initial bid for the loyalty plan to $325-million, however, Aimia is demanding $450-million, according to Aimia."
Aug 2, 2018, 6:39 pm
#253
Join Date: Nov 2017
Posts: 3,359
Aimia said no.
"Takeover negotiations between Air Canada and Aimia Inc., the parent company of the Aeroplan loyalty rewards program, have broken off.
Air Canada and its three financial partners raised their initial bid for the loyalty plan to $325-million, however, Aimia is demanding $450-million, according to Aimia."
"Takeover negotiations between Air Canada and Aimia Inc., the parent company of the Aeroplan loyalty rewards program, have broken off.
Air Canada and its three financial partners raised their initial bid for the loyalty plan to $325-million, however, Aimia is demanding $450-million, according to Aimia."
Aug 2, 2018, 7:17 pm
#255
Join Date: Apr 2011
Location: YYC
Programs: AC 50k 1MM, Marriott LT Titanium Elite
Posts: 3,402
Aimia said no.
"Takeover negotiations between Air Canada and Aimia Inc., the parent company of the Aeroplan loyalty rewards program, have broken off.
Air Canada and its three financial partners raised their initial bid for the loyalty plan to $325-million, however, Aimia is demanding $450-million, according to Aimia."
"Takeover negotiations between Air Canada and Aimia Inc., the parent company of the Aeroplan loyalty rewards program, have broken off.
Air Canada and its three financial partners raised their initial bid for the loyalty plan to $325-million, however, Aimia is demanding $450-million, according to Aimia."
Jeepers. Not pointing at you Rundosrun, pointing at the G&M writer: have you ever done a business transaction in your life? Do you have the remotest clue how it works? If everybody took every difference in price as a "no" (definitive, final, no) then nothing would ever get transacted for more than $20. Wowzer.