Aimia Refuses to Sell Aeroplan Frequent Flyer Program Back to Air Canada
Skift Take
It always seemed unlikely Aimia would accept this offer for the Aeroplan program. But this is bad news for Air Canada frequent flyers who have spent decades building their frequent flyer accounts. If nothing changes, they won't be able to use their miles as they expected in less than two years.
Aimia, which owns Air Canada's loyalty program, has rejected the airline's $250 million (C$325 million) cash offer to buy it back, Aimia said Thursday, just as the offer was scheduled to expire.
Air Canada and three partners, The Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, and Visa Canada Corporation, said July 25 they sought to buy the program, for $192 million (C$250 million), plus the assumption of $1.54 billion (C$2 billion) in frequent flyer mile-related liabilities.
While Air Canada's group raised its offer during negotiations, Aimia wanted $346 million in cash (C$450 million), as well as some changes in the nature of the agreement, according to a release from the company.
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