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 11, 2018, 8:47 am
#406
FlyerTalk Evangelist
Join Date: Jun 2003
Location: YYC
Posts: 23,804
However they will need support from AC. For them the value is associated with AC, not with AE.
Seems the main issue is that their contract with Aimia goes until 2024.
Anyway, this thing is getting more entertaining by the day. Looks like for points holders the story might not end up as badly as people feared.
Aug 11, 2018, 9:01 am
#407
Join Date: Nov 2017
Posts: 3,359
Safe Travels,
James
Aug 11, 2018, 9:47 am
#408
Suspended
Join Date: May 2018
Location: ord
Programs: UA 1k SPG Platinum
Posts: 365
Aug 11, 2018, 10:22 am
#409
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Join Date: Jun 2003
Location: YYC
Posts: 23,804
I wonder, even though the contract the banks have with AE runs into 2024, but if after the divorce, what AE offers point holders is substantially different than what the contract was based upon, could the banks walk out and leave Aimia in the cold? And negotiate a fresh deal with AC? Which leaves the question of miles balances up in the air though.
TD seems pretty aggressive with AE at this point.
TD seems pretty aggressive with AE at this point.
Aug 11, 2018, 12:11 pm
#410
Join Date: Apr 2007
Location: Toronto, Ont., Canada
Programs: Aeroplan; Marriott Platinum; IHG Platinum; Best Western Diamond
Posts: 2,165
".. Now every purchase you make will make your realize it'll take forever to get to redemption"
I wonder, even though the contract the banks have with AE runs into 2024, but if after the divorce, what AE offers point holders is substantially different than what the contract was based upon, could the banks walk out and leave Aimia in the cold? And negotiate a fresh deal with AC? Which leaves the question of miles balances up in the air though.
TD seems pretty aggressive with AE at this point.
TD seems pretty aggressive with AE at this point.
With the rumor of AC having draft deals with MC, it makes TD/CIBC/Visa nervous, and buying ae is the best way out. All 4 parties in AC/TD/CIBC/Visa have different but all good reasons to buy out ae.
Aug 11, 2018, 2:04 pm
#411
Join Date: Aug 2008
Location: トロント
Programs: IHG Gold
Posts: 4,820
I happened to see this in a G&M article today: (source https://www.theglobeandmail.com/busi...-takeover-bid/)
At the moment, Aeroplan’s most valuable members are frequent Air Canada flyers, largely owing to a deep-rooted relationship between the two companies that dates back decades. Aeroplan was originally built in-house at Air Canada in 1984, and although it was spun out in a 2005 initial public offering, the two have shared a long-standing contract that guarantees Aeroplan members 8 per cent of seats on every Air Canada route each month
Is that in fact correct that 8% of every AC route was allocated to Aeroplan? Sometimes it never felt that way.
2nd question is this---last year there were several Aeroplan/AC joint promotions. There were some decent ones with triple points for PE/J tickets to Asia as one example. Anyone see these coming back later this year?
Seems to me if Aeroplan and AC are in some sort of turf war, why would there be any extra bonuses for AC flights?
At the moment, Aeroplan’s most valuable members are frequent Air Canada flyers, largely owing to a deep-rooted relationship between the two companies that dates back decades. Aeroplan was originally built in-house at Air Canada in 1984, and although it was spun out in a 2005 initial public offering, the two have shared a long-standing contract that guarantees Aeroplan members 8 per cent of seats on every Air Canada route each month
Is that in fact correct that 8% of every AC route was allocated to Aeroplan? Sometimes it never felt that way.
2nd question is this---last year there were several Aeroplan/AC joint promotions. There were some decent ones with triple points for PE/J tickets to Asia as one example. Anyone see these coming back later this year?
Seems to me if Aeroplan and AC are in some sort of turf war, why would there be any extra bonuses for AC flights?
Aug 11, 2018, 2:24 pm
#412
FlyerTalk Evangelist
Join Date: Jun 2003
Location: YYC
Posts: 23,804
I happened to see this in a G&M article today: (source https://www.theglobeandmail.com/busi...-takeover-bid/)
Is that in fact correct that 8% of every AC route was allocated to Aeroplan? Sometimes it never felt that way.
2nd question is this---last year there were several Aeroplan/AC joint promotions. There were some decent ones with triple points for PE/J tickets to Asia as one example. Anyone see these coming back later this year?
Seems to me if Aeroplan and AC are in some sort of turf war, why would there be any extra bonuses for AC flights?
Seems to me if Aeroplan and AC are in some sort of turf war, why would there be any extra bonuses for AC flights?
Aug 11, 2018, 2:46 pm
#413
Join Date: Aug 2008
Location: トロント
Programs: IHG Gold
Posts: 4,820
I just wanted to post a paragraph of the article for those who are not G&M subscribers.
Yeah, I think AC would be reluctant to buy more miles from AE for promotions. Too bad---I liked some of those promos.
Aug 11, 2018, 3:24 pm
#414
Join Date: Dec 2006
Location: YEG
Posts: 3,925
When AC first spun off AE pretty much all fares earned at least 100% RDM, but now Tango fares earn 25% domestically, etc. I’d always assumed that promotions such as EYW and others were a way for AC to ensure they were meeting the minimum mile purchase requirements.
Aug 14, 2018, 10:22 am
#415
Join Date: Apr 2007
Location: Toronto, Ont., Canada
Programs: Aeroplan; Marriott Platinum; IHG Platinum; Best Western Diamond
Posts: 2,165
It's been several days without news from any party. We're all wondering what the next move by the AC group would be. It makes sense for AC to up the offer, and buy somewhere close to $450M. But TD seems to have some reservation. Well, TD thought they won the ae contract from CIBC before, only to have CIBC threatening to sue, and CIBC end up keeping a big share of the CC business. TD wants to be cautious, to make sure they don't get too many more surprises.
Aug 14, 2018, 11:15 am
#416
Join Date: Dec 2007
Location: Body in Downtown YYZ, heart and mind elsewhere
Programs: UA 50K, refugee from AC E50K, Marriott Lifetime Plat
Posts: 5,132
It's been several days without news from any party. We're all wondering what the next move by the AC group would be. It makes sense for AC to up the offer, and buy somewhere close to $450M. But TD seems to have some reservation. Well, TD thought they won the ae contract from CIBC before, only to have CIBC threatening to sue, and CIBC end up keeping a big share of the CC business. TD wants to be cautious, to make sure they don't get too many more surprises.
Canadian cardholders are clearly addicted to AE points which keeps the banks happy. But I don't think TD nor CIBC particularly care that AE points are redeemable on AC. I do think the banks care that AE points are redeemable on "real" airlines and not just PD and LCCs. If AE were to somehow sign up OneWorld or SkyTeam, I think we'd see the banks back off immediately. So long as AE can demonstrate that they're in serious talks, I think the banks will be content to wait a little more.
Aug 14, 2018, 12:19 pm
#417
Join Date: Mar 2010
Location: Canada
Programs: *G
Posts: 2,304
I've been noticing TD Visa Infinite ads for benefits that are not directly associated with flying, such as free wine tastings, breakfast at 900 "luxury" hotels, special dinners (expensive), and there is also the new Lounge at Toronto's Union Station. Are these part of their strategy to deal with the breakup, or have they always been around?
Aug 21, 2018, 5:49 am
#418
Join Date: Jan 2005
Location: YYZ > PEK > YYZ
Posts: 315
Agreement reached
https://www.newswire.ca/news-release...l?tc=eml_mycnw
NEWS PROVIDED BY
Air Canada / TD Bank Group / CIBC / VISA Canada Corporation07:30 ET
- Purchase price consists of $450 millionin cash and the assumption of approximately $1.9 billion of Aeroplan Miles liability
- Agreement in principle was unanimously approved by Aimia's Board of Directors and is supported by Mittleman Brothers
- Transaction would provide value for Aimia and its shareholders and continuity for Aeroplan members and customers of Air Canada, TD, CIBC and Visa
- Transaction subject to negotiation of definitive agreements and other conditions; completion expected fall 2018
"We are pleased to see that an agreement in principle has been reached as Aeroplan members can continue to earn and redeem with confidence. This transaction, if completed, should produce the best outcome for all stakeholders, including Aeroplan Members, as it would allow for a smooth transition to Air Canada's new loyalty program launching in 2020, safeguarding their miles and providing convenience and value for millions of Canadians," said Calin Rovinescu, President and CEO of Air Canada, on behalf of the consortium.
The transaction is expected to deliver significant value to Aimia's stakeholders and the agreement in principle was approved unanimously by Aimia's Board of Directors upon recommendation by its Special Committee of independent directors. Mittleman Brothers, LLC, Aimia's largest shareholder who owns approximately 17.6% of Aimia's common shares, has provided a lock-up and support agreement under which it has agreed to vote in favour of the proposed transaction.
The aggregate purchase price consists of $450 million in cash and is on a cash-free, debt-free basis and includes the assumption of approximately $1.9 billion of Aeroplan Miles liability.
The transaction is subject to the satisfactory conclusion of definitive transaction documents, Aimia shareholder approval, and certain other conditions, including due diligence, receipt of customary regulatory approvals and completion by the Consortium of credit card loyalty program and network agreements for future participation in Air Canada's new loyalty program.
Aug 21, 2018, 5:58 am
#419
Join Date: Sep 2009
Location: YYZ
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Posts: 4,425
Agreement reached
https://www.newswire.ca/news-release...l?tc=eml_mycnw
NEWS PROVIDED BY
Air Canada / TD Bank Group / CIBC / VISA Canada Corporation07:30 ET
- Purchase price consists of $450 millionin cash and the assumption of approximately $1.9 billion of Aeroplan Miles liability
- Agreement in principle was unanimously approved by Aimia's Board of Directors and is supported by Mittleman Brothers
- Transaction would provide value for Aimia and its shareholders and continuity for Aeroplan members and customers of Air Canada, TD, CIBC and Visa
- Transaction subject to negotiation of definitive agreements and other conditions; completion expected fall 2018
"We are pleased to see that an agreement in principle has been reached as Aeroplan members can continue to earn and redeem with confidence. This transaction, if completed, should produce the best outcome for all stakeholders, including Aeroplan Members, as it would allow for a smooth transition to Air Canada's new loyalty program launching in 2020, safeguarding their miles and providing convenience and value for millions of Canadians," said Calin Rovinescu, President and CEO of Air Canada, on behalf of the consortium.
The transaction is expected to deliver significant value to Aimia's stakeholders and the agreement in principle was approved unanimously by Aimia's Board of Directors upon recommendation by its Special Committee of independent directors. Mittleman Brothers, LLC, Aimia's largest shareholder who owns approximately 17.6% of Aimia's common shares, has provided a lock-up and support agreement under which it has agreed to vote in favour of the proposed transaction.
The aggregate purchase price consists of $450 million in cash and is on a cash-free, debt-free basis and includes the assumption of approximately $1.9 billion of Aeroplan Miles liability.
The transaction is subject to the satisfactory conclusion of definitive transaction documents, Aimia shareholder approval, and certain other conditions, including due diligence, receipt of customary regulatory approvals and completion by the Consortium of credit card loyalty program and network agreements for future participation in Air Canada's new loyalty program.
Now lets see if the agreement with PD and Transat stands and I assume negotiations with Oneworld are now dead.
No mention of the split by partners of the $450M and also the 'liability'. Wonder that these points will now be worth i.e. will AC stand pat, devalue or devalue in an transfer to Altitude. Or even if they move ahead with their own program as they have stated many times.