Canadian Imperial Bank of Commerce, issuer of the popular Air Canada Aerogold Card, is reviewing its current contract with Air Canada in light of the carrier’s recent bankruptcy.
According to Reuters, the crux of the issue is that Air Canada would like to renegotiate the contract, possibly requiring CIBC to pay more for the right to issue the cards. CIBC wants to keep the contract and is not terribly interested in paying more for the privilege.
“Clearly the bankruptcy proceedings could result in that contract being thrown out and a new contract written,” John Hunkin, CIBC’s chief executive, said.
“We feel we’re in a very strong position … if it ever came down to bidding for the contract because we already have the established business, we have the million cardholders, we have the earnings from that base and therefore we are in a much stronger position to bid for it.”
When Reuters asked whether CIBC would be interested in buying a stake in Aeroplan, Hunkin said, “You think about these things once in a while but there are no discussions at this point going on.”