Air Canada moved closer to the acquisition of Aeroplan after signing a final agreement to purchase Aimia Inc.`s loyalty program earlier this week. Air Canada, The Toronto-Dominion Bank (“TD”), Canadian Imperial Bank of Commerce (“CIBC”), Visa Canada Corporation (“the consortium”) and Aimia Inc. (“Aimia”) announced today that they have entered into an agreement in principle to acquire Aimia`s aeroplane fidle business. TORONTO, November 26, 2018 /CNW/ – The Bank of Toronto-Dominion (“TD”) and Air Canada today announced the conclusion of a long-term loyalty agreement (the “Loyalty Agreement”). Under the loyalty agreement, TD will become the primary credit card issuer for Air Canada`s new loyalty program when it is introduced from 2020 to 2030. The loyalty agreement was entered into in conjunction with Air Canada, which enters into a definitive share purchase agreement with Aimia Inc. (“Aimia”) for the acquisition of Aimia Canada Inc., which operates Aeroplan`s loyalty (the “transaction”). The closing of the transaction is conditional on compliance with certain conditions, including obtaining the agreement of Aimia shareholders and customary regulatory approvals. The loyalty agreement takes effect at the conclusion of the transaction. “We look forward to this agreement, which will bring long-term stability, continuity and value to our TD Aeroplan customers,” said Bharat Masrani, Group President and Managing Director of TD Bank Group.
“We are pleased to have taken this important step to become the leading credit card issuer for Air Canada`s new loyalty program, which strengthens our strength in the Canadian credit card industry and positions us well for future growth.” TD, CIBC and American Express offer all cards connected to the Aeroplan program. TD, CIBC and Visa have signed new agreements with Air Canada to participate in its new loyalty program after 2020, linked to the closure of Air Canada`s acquisition of Aeroplan. The American Express Aeroplan contract expires in 2020. The transaction is contingent on the satisfactory conclusion of final transaction documents, the agreement of Aimia shareholders and other conditions, including due diligence, obtaining customary administrative approvals and the conclusion of a credit card loyalty program and network agreements for Air Canada`s future participation in Air Canada`s new loyalty program by the consortium. At the time of the agreement, National Bank financial analyst Gabriel Dechaine estimated that the TD and CIBC program together reported an annual profit of $US 400 million.