Aimia, the parent company responsible for managing the Aeroplan frequent flyer loyalty program, has rejected a $2.25 billion takeover bid put forward by an Air Canada-led consortium.
Aimia has also announced a new partnership with Porter Airlines.
According to an August 3rd, 2018 media release, Porter will be a “preferred Canadian airline to issue Aeroplan Miles” as of July 2020.
“This is a unique opportunity for Porter to join a well-established travel loyalty program and, in the future, reach its vast member base to aggressively promote our airline,” said Michael Deluce, executive vice president and chief commercial officer of Porter Airlines, in the same August 3rd media release.
“Our current VIPorter members will benefit from Aeroplan’s enhanced range of loyalty services, with an ability to earn and redeem points with a growing network of airlines and other brands.”
Porter’s existing VIPorter loyalty program will be converted into Aeroplan Miles once the agreement between both companies comes into effect in 2020.
Aimia had until August 2nd, 2018 to inform the consortium — consisting of Air Canada, TD Bank, CIBC and Visa Canada — about its decision.
In an email to clients, TD Bank wrote that it was disappointed in Aimia’s decision to reject the bid, and that the bank is now “evaluating next steps.”
“We have sought, but not received, assurances from Aimia that the Aeroplan Program will deliver the value that we and you, as a TD Aeroplan credit cardholder, would expect from Aimia in the long term,” reads an excerpt from an August 3rd, 2018 email sent by TD Bank.
Had Aimia accepted the consortium’s offer, control of the Aeroplan rewards program would have returned to Air Canada.
Canada’s flag carrier launched Aeroplan as a frequent flyer program in 1984. Aeroplan was spun off as its own company in 2002.
Air Canada announced in 2017 that it had plans to launch a new frequent flyer program to replace its use of Aeroplan miles by 2020.