Aimia Provides Update on Status of New Financial Card Agreement
MONTREAL, Aug. 12, 2013 /CNW Telbec/ - Aimia (TSX: AIM) today confirmed TD as Aeroplan's new financial credit card partner for the 10-year period effective from January 1, 2014, following the announcement of Aimia's new credit card agreement on June 27, 2013 and CIBC's decision not to exercise its contractual right to match the terms of the agreement on or before August 9, 2013.
"We are delighted to confirm TD as our new financial credit card partner. TD is a leading financial institution with a strong Canadian retail and global banking franchise that shares our customer-centric vision for Aeroplan and that is committed to building the program with us," said Rupert Duchesne, Group Chief Executive, Aimia. "We are confident that the strength of the transformed Aeroplan program will drive increased engagement and market share among premium Canadian consumers."
There are however ongoing active discussions among Aimia, TD, and CIBC about a broad framework that would see CIBC retain cards held by their existing banking customers, which represent about half the portfolio. TD would acquire the remainder. All parties will work vigorously to try to reach agreement, complete due diligence and finalize definitive documentation by Aug 26, 2013. There can be no assurances that an agreement will be reached.
In connection with the confirmation of TD by Aimia as Aeroplan's new financial credit card partner, CIBC has advised Aimia that it was challenging the validity of the notice and proposed agreement provided to CIBC on June 26, 2013, and that it was reserving its rights to take any legal measures available to it. Aimia believes that CIBC's assertions are without merit and it will vigorously defend any claim made by CIBC.
Aeroplan's current agreement with CIBC is effective until December 31, 2013. Members can continue to earn miles as usual on their Aeroplan/CIBC co-branded credit cards for the remainder of the year. All Aeroplan Miles that members accumulate are deposited into their Aeroplan accounts and are not tied to their credit cards.
Aeroplan, Canada's premier coalition loyalty program, is owned by Aimia Inc., a global leader in loyalty management. Aeroplan's millions of members earn Aeroplan Miles with its growing network of over 75 world-class partners, representing more than 150 brands in the financial, retail, and travel sectors.
In 2012, approximately 2.3 million rewards were issued to members including more than 1.6 million flights on Air Canada and Star Alliance carriers which offer travel to more than 1,000 destinations worldwide. In addition to flights, members also have access to over 1,000 exciting specialty, merchandise, hotel, car rental and experiential rewards.
Aimia Inc. ("Aimia" or the "Corporation") is a global leader in loyalty management. Employing more than 4,000 people in over 20 countries worldwide, Aimia offers clients, partners and members proven expertise in launching and managing coalition loyalty programs, delivering proprietary loyalty services, creating value through loyalty analytics and driving innovation in the emerging digital, mobile and social communications spaces.
Aimia owns and operates Aeroplan, Canada's premier coalition loyalty program, Nectar, the United Kingdom's largest coalition loyalty program and Nectar Italia. In addition, Aimia owns stakes in Air Miles Middle East, Mexico's leading coalition loyalty program Club Premier, Brazil's Prismah Fidelidade, and i2c, a joint venture with Sainsbury's offering insight and data analytics services in the UK to retailers and suppliers. Aimia also holds a minority position in Cardlytics, a US-based private company operating in transaction-driven marketing for electronic banking. Aimia is listed on the Toronto Stock Exchange (TSX: AIM). For more information, visit us at www.aimia.com.