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Aimia reaches credit card deals with TD, CIBC
By Adnews Staff
Loyalty program company Aimia has confirmed ten-year financial credit card agreements with TD Bank Group and CIBC. Both will go into effect on Jan. 1, 2014. At that time, TD will become the primary financial services provider and credit card issuer for Aimia's Aeroplan loyalty program. CIBC will also continue to be an issuer of Aeroplan credit cards.
Aimia has also entered into a purchase agreement with the two banks under which TD will acquire approximately half of the current Aeroplan card portfolio and CIBC will retain the remainder, specifically those Aeroplan cardholders who have an additional banking relationship with CIBC. Both agreements include a 15% increase in price per mile and a more comprehensive collaboration with regards to data and consumer analytics. Both banks will offer what Aimia is describing as an enhanced suite of Aeroplan Visa credit cards, which will include more earning options and benefits. The company is also planning to make changes to the benefits offered to all Aeroplan program members in January.
As part of its agreement, TD will participate in a joint marketing spend with Aimia of $140 million over four years. Aimia, TD and CIBC are also preparing to launch a marketing campaign intended to inform Aeroplan members about the transition to new cards in 2014. Accumulated loyalty points are tied to the consumer's Aeroplan account, not to a specific credit card. Aeroplan members will be able to choose which bank they wish to have issue their card.
"The agreements we are announcing today with TD and CIBC will put real momentum behind the transformed Aeroplan program we will launch in January and provide a strong and stable platform for growth in the Canadian business," said Rupert Duchesne, group chief executive at Aimia. "Having these agreements in place will also preserve the financial flexibility to invest in the growth opportunities we might see for Aimia over the next few years."