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
Nov 26, 2018, 2:42 pm
#632
Join Date: Dec 2008
Location: Delta, BC
Posts: 1,646
The current wording seems pretty clear that it is AC and AC alone purchasing Aeroplan.
Cash seems to be coming from the CC companies paying in advance for points, but they don't seem to be getting any ownership; it does not seem to be a new co-owned company or anything else creative.
Cash seems to be coming from the CC companies paying in advance for points, but they don't seem to be getting any ownership; it does not seem to be a new co-owned company or anything else creative.
"Air Canada enters into a definitive share purchase agreement with Aimia Inc. to acquire the Aeroplan loyalty business. ...
Air Canada, with the financial support of its partners, The Toronto-Dominion Bank ("TD"), Canadian Imperial Bank of Commerce ("CIBC"), and Visa Canada Corporation ("Visa"), has entered into a definitive share purchase agreement with Aimia for the acquisition of Aimia Canada Inc. ("Aimia Canada"), owner and operator of the Aeroplan loyalty business. "
So financial support but no ownership stake. The TD press release also refers to AC entering into a share purchase agreement for the acquisition of Aimia Canada.
Aimia Press Release:
"MONTREAL, Nov. 26, 2018 /CNW Telbec/ - Data-driven marketing and loyalty analytics company Aimia Inc. (TSX: AIM) ("Aimia") today announced that it has entered into a definitive share purchase agreement (the "Agreement") with Air Canada for the purchase by Air Canada of all of the issued and outstanding share capital of Aimia Canada Inc. ("Aimia Canada"), the owner and operator of the Aeroplan loyalty program, for an all-cash purchase price of $450 million on a cash-free, debt-free basis. ..."
Note that Aimia Inc still will exist, Aimia Canada Inc IS for all intents and purposes basically only "Aeroplan".
Nov 26, 2018, 2:42 pm
#633
Suspended
Join Date: Sep 2014
Programs: AC SE100K-1MM, NH, DL, AA, BA, Global Entry/Nexus, APEC..
Posts: 18,877
Nov 26 2018 4:38 pm ET
Just received this email signed by Mark Nasr.
QUOTE:
"If successfully completed, the transaction would safeguard all Aeroplan Members’ miles, allow you to earn and redeem with confidence and support a smooth transition to Air Canada’s new loyalty program launching in 2020"
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Just received this email signed by Mark Nasr.
QUOTE:
"If successfully completed, the transaction would safeguard all Aeroplan Members’ miles, allow you to earn and redeem with confidence and support a smooth transition to Air Canada’s new loyalty program launching in 2020"
.
Nov 26, 2018, 3:44 pm
#634
Suspended
Join Date: Oct 2009
Location: Kan@da
Programs: Anything with sweet spots
Posts: 1,790
The Westjet World Elite Mastercard from RBC offers free checked bags for the cardholders and companions on all Westjet flights.
The current equivalent Aeroplan Visa Infinite cards don't offer free checked bags on AC flights except for Aeroplan redemptions and for the main cardholder only, not the companions.
Can we expect that the future Air Canada Visa Infinite (not Privilege) credit card will offer something equivalent to the RBC Westjet World Elite card ?
The current equivalent Aeroplan Visa Infinite cards don't offer free checked bags on AC flights except for Aeroplan redemptions and for the main cardholder only, not the companions.
Can we expect that the future Air Canada Visa Infinite (not Privilege) credit card will offer something equivalent to the RBC Westjet World Elite card ?
Nov 26, 2018, 3:47 pm
#635
FlyerTalk Evangelist
Join Date: Jun 2003
Location: YYC
Posts: 23,804
The Westjet World Elite Mastercard from RBC offers free checked bags for the cardholders and companions on all Westjet flights.
The current equivalent Aeroplan Visa Infinite cards don't offer free checked bags on AC flights except for Aeroplan redemptions and for the main cardholder only, not the companions.
Can we expect that the future Air Canada Visa Infinite (not Privilege) credit card will offer something equivalent to the RBC Westjet World Elite card ?
The current equivalent Aeroplan Visa Infinite cards don't offer free checked bags on AC flights except for Aeroplan redemptions and for the main cardholder only, not the companions.
Can we expect that the future Air Canada Visa Infinite (not Privilege) credit card will offer something equivalent to the RBC Westjet World Elite card ?
Nov 26, 2018, 3:49 pm
#636
FlyerTalk Evangelist
Join Date: Jun 2003
Location: YYC
Posts: 23,804
Nov 26, 2018, 4:50 pm
#640
Suspended
Join Date: Aug 2018
Posts: 669
The CC companies definitely wouldn't advance AC a dime for points if they weren't provided with contractual iron-clad assurances as to the redeemability or redemption value of points. So if a devaluation has been negotiated, its already most likely been negotiated. Or alternatively, if no devaluation has been negotiated, then there will not be a devaluation at least for the life of the contract.
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Also, one thing missing from all press releases I have seen, is how long the CC right holding last. I can’t see this agreement be opened ended.
Nov 26, 2018, 5:01 pm
#641
Suspended
Join Date: Aug 2018
Posts: 669
BTW, what ever happened to the CEO's claim that being rid of Aeroplan would add billions to AC's bottom line? I think we can safely assume such was just unadulterated nonsense, at the time, and probably even more so going forward as AC starts gearing up for a much weaker domestic economy and much lower capacity utilization.
Nov 26, 2018, 5:04 pm
#642
Join Date: Mar 2001
Location: Toronto, ON
Programs: AC 75K
Posts: 6,363
http://td.mediaroom.com/2018-11-26-T...oyalty-Program
Nov 26, 2018, 5:10 pm
#643
Suspended
Join Date: Aug 2018
Posts: 669
TD's agreement is a 10 year agreement to 2030, noted directly in their PR.
TD and Air Canada Finalize Long-Term Agreement for Air Canada Credit Card Loyalty Program - Nov 26, 2018
TD and Air Canada Finalize Long-Term Agreement for Air Canada Credit Card Loyalty Program - Nov 26, 2018
thank you