pitz

I don't see why they couldn't put a proposal to shareholders which separates AP from the rest of the business. Its not even clear at this point if AC has been in contact with major Aimia shareholders. In fact, just looking online, the shareholder base is so dispersed that all I can see is that Burgundy Asset Management controls 12.5% or so of the company. Every other disclosed holding is ~1% or less.



AC runs an airline. AP runs a loyalty business. I'm not sure how they are even remotely competitors.

Stranger

Currently. But if AC go their own way, they'll be running a loyalty business too. And same if they buy Aimia.

Loyalty business is profitable for airlines. AC would never have sold Aeroplan except for badly needing cash at the time of the bankruptcy.

yscleo

Just got email from ae. No mention of the AC bid.

Dear xxx

You may have seen or heard several things in the news recently about the future of the Aeroplan program.

I want to reassure you that we are committed to building Canada's best travel loyalty program providing you with exceptional value on flight rewards, increased flexibility and an enhanced experience. This includes the ability to redeem your miles for any seat on any airline (including Air Canada), at any time, to anywhere you want to go come July 2020.

We're proud to announce a comprehensive partnership with Porter that will allow you to earn and redeem Aeroplan Miles with them beginning in July 2020. We're also in active discussions with other major airlines and airline networks, with more exciting announcements to come. We remain committed to maintaining flight reward mileage levels that start at the same amounts as today on members’ most redeemed destinations. For more details about our future plans, click here.

In the meantime, you will continue to earn and redeem with Air Canada and Star Alliance member airlines through June 2020 under our current agreement. As a CIBC Aeroplan cardholder, you will also continue to earn Aeroplan Miles on all purchases with your credit card. Our current agreement with CIBC is in effect until 2024.

I realize that you will have questions about the program between now and 2020. I will continue to provide you with information as we work toward building a better Aeroplan program for you. You can find answers to more questions here.

Sincerely,

Jeremy Rabe
CEO

skybluesea

BRAISKI

It's funny how AP is mentioning that TD/CIBC are still in contract with them till 2024. I've been thinking of cancelling my TD Visa.

Since there's a major change with the business, can AP still hold TD/CIBC to stay?

Silvercity

skybluesea

canolakid

or how 'bout airlines focus on flying and leave CC redemption games to the CC companies...

RangerNS

CC companies are free to have their own points, and of course many do. But it is the deep integration into an airlines inventory system (that is, knowledge of unsellable seats) that makes things good for the airline, the points team (inhouse or like AC/AE) and individual collector.

Otherwise, CC points are just cash refund, but less useful than cash.

Bohemian1

The emails keep flying in - This just in from CIBC:

Important message for you

Dear Bohemian1,

As your business is important to us, we wanted to share an update with you regarding the Aeroplan® Program.

Last year, Air Canada® announced that Aeroplan, which is owned and operated by Aimia, would no longer be Air Canada’s loyalty program effective June 30, 2020. Aimia and Air Canada have publicly stated that Aeroplan® Miles can continue to be retained and redeemed as usual until June 30, 2020. Plans for Aeroplan Miles redemption between Aimia and Air Canada beyond that date have not been made clear. CIBC pays Aimia for your Aeroplan Miles, but Aimia is responsible for your reward fulfillment.

Our first priority is our clients. In an effort to provide continuity and clarity for our clients, we recently participated in a bid with Air Canada and other interested parties to buy the Aeroplan Program. Aimia has rejected that offer. We will keep you updated on new developments.

In the meantime, you can continue to redeem your existing Aeroplan Miles just as you do now until June 2020. We want to ensure you get the credit card that best meets your needs, and we are here to explain your options, including our fly‑any‑airline Aventura® travel rewards program. Please call us at 1 800 465‑4653 if you have questions. We have posted more information at cibc.com/AimiaUpdate

If you have questions about your Aeroplan membership or the Aeroplan Program, please contact Aimia at 1 800 361‑5373 and visit aeroplan.com for the terms and conditions of the Aeroplan Program.

Sincerely,

Prashant Sharma
Senior Vice‑President, Cards
Personal and Small Business Banking
CIBC

skybluesea

RangerNS

Then get a credit card with cashback and forgot about figuring out how to collect and best spend not-quite-cash.

canadiancow

AC does not keep all the YQ. It's a three-party arrangement between Aeroplan, Air Canada, and the operating airline. That's why it's only charged on certain airlines. If AC could charge it everywhere, and could keep it everywhere, there wouldn't be YQ-free airlines.

skybluesea

eracerblue

So you are less than optimistic about an AC run program?

Maybe wishful thinking, but I am thinking that an AC run program could dispatch of some challenges to save face, and dynamically reallocate more reward seats without having to stick to the arcane 8% rule.