Air Canada-led group launches $2.25bn bid to purchase Aimia’s Aeroplan business
Leading airline, Air Canada, and two major Canadian banks has launched a $2.25bn bid for Aimia’s Aeroplan rewards programme, The Financial Post reports.
The bid has taken place a year after Air Canada confirmed its arrangement with Aimia was due to expire and announced plans to set up its own in-house loyalty programme by 2020.
Canadian Imperial Bank of Commerce, Toronto-Dominion Bank and Visa Canada Corp make up the bidding consortium which consists of $250mn in cash and the anticipated $2bn in Aeroplan points liability.
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Doug Taylor, Managing Director of Technology and Aerospaceequity research at Canaccord Genuity in Toronto, said: “The optics of what has transpired between Air Canada and Aimia over the past 16 months are sure to raise some eyebrows.”
“However, the short response from Aimia today does suggest Air Canada has approached Aimia in good faith privately in an effort to reach a resolution before making a hostile offer.”
If the consortium’s bid is approved, the plan is “a smooth transition of Aeroplan members’ points to Air Canada’s new loyalty programme,” the press release reported.