In the end, the consortium reached an agreement at the end of August with Aimia for Aeroplan, a month after the first announcement of its unsolicited offer. To secure the deal, Air Canada and its partners have softened their cash offer to $US 450 million, and Air Canada has also assumed Aeroplan`s existing responsibility for uncashed points, which is worth $US 1.9 billion. Air Canada has moved one step closer to acquiring Aeroplan, after signing a final agreement for the purchase of Aimia Inc.`s loyalty program earlier this week. At the time of the deal, National Bank financial analyst Gabriel Dechaine estimated that the TD program and CIBC together were earning $400 million $US. Air Canada agreed to pay $US 450 million in cash and said it will also support $US 1.9 billion of Aeroplan Miles as part of the deal the carrier is expected to enter into in January. The airline has also entered into new agreements with Toronto-Dominion Bank credit card partners, Imperial Bank of Canada commerce and Visa Canada Corp. to participate in its new loyalty program pending the completion of the acquisition of Aeroplan. TD, CIBC and American Express offer all Aeroplan cards. TD, CIBC and Visa have signed new agreements with Air Canada to participate in their new loyalty program after 2020, related to the completion of Air Canada`s acquisition of Aeroplan. The contract with American Express Aeroplan expires in 2020. Here`s what Air Canada`s Aeroplan agreement – and its agreements with CIBC, TD Bank and Visa – could mean for the five million members who accumulate points for flights with Air Canada: TD will become the largest credit card issuer for Air Canada`s new frequent flyer program from 2020 to 2030.
Bharat Masrani, Group Chairman and Chief Executive Officer of TD Bank, said the new agreement would bring stability, continuity and long-term value to the Bank`s Aeroplan members. TORONTO, Nov. 26, 2018 /CNW/ – The Bank of Toronto-Dominion („TD“) and Air Canada today announced that they have entered into a long-term loyalty agreement (the „Loyalty Agreement“). Under the terms of the loyalty agreement, TD will be the primary credit card issuer for Air Canada`s new loyalty program when it starts from 2020 to 2030. The Loyalty Agreement was entered into in connection with the conclusion of a final share purchase agreement with Aimia Inc. („Aimia“) regarding the acquisition of Aimia Canada Inc., which operates Aeroplan`s loyalty business (the „Transaction“). Completion of the transaction is subject to compliance with certain conditions, including obtaining consent from Aimia shareholders and customary administrative approvals. The loyalty agreement will enter into force on the date of the conclusion of the transaction. The transaction is subject to the satisfactory completion of the final transaction documents, the agreement of Aimia`s shareholders and certain other conditions, including due diligence, obtaining customary administrative clearances and entering into credit card and network loyalty agreements by the consortium for future participation in Air Canada`s new loyalty program. . . .