IS TD going to become Aeroplan's new CC partner

Discussion in 'Air Canada | Aeroplan' started by guinnessxyz, Jun 27, 2013.  |  Print Topic

  1. http://www.theglobeandmail.com/repo...with-cibc/article12852318/#dashboard/follows/

    Toronto-Dominion Bank is set to take over as the new provider of Aeroplan credit cards once Canadian Imperial Bank of Commerce’s contract with the rewards program expires at the end of the year.
    CIBC and Aimia, Aeroplan’s parent company, have been in negotiations for months over the contract renewal and late last month CIBC announced that there was a possibility it would not seek a renewal and would instead launch its own loyalty card, much like Royal Bank of Canada’s Avion credit card.
     
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  2. Canadi>n
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    Canadi>n Gold Member

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  3. CIBC has rights of first refusal that's the reason for the opportunity to counter, but, in any event they will pay more if they bite.
     
  4. As further news comes out it appears that TD will give more AE miles per dollar spent than CIBC does now.
     
  5. YULtide

    YULtide Gold Member

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    Life just got more complicated. It will be interesting to see how all of this shakes out.
     
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  6. tomh009
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    tomh009 Gold Member

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    I'll hazard a guess that TD would do this with their MBNA brand Mastercard ...
     
  7. They told me today at my branch that they will have multiple Aeroplan cards likely a visa and a MC. I think the MBNA card will get morphed into one of their current products.
     
  8. southender
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    southender Silver Member

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    I have zero interest in getting stuck in a airline-linked card; flexibility and perq's are all I look for these days.
     
  9. akcae
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    akcae Silver Member

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    Aimia is required to disclose publicly that they're negotiating the deal so TD made the announcement as well. It's a conditional agreement for now.
     
  10. YEGman

    YEGman Silver Member

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    I cancelled my CIBC one years ago and have zero intention of getting any card linked to errorplan.

    I only keep my Amex one because it's free so long as I keep my Amex Platinum.
     
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  11. They feel the same way!!
     
  12. BackSlash

    BackSlash Silver Member

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    YEGman, why so hostile to trading one AE banking partner for another. If you're so unhappy with Aeroplan then change can only be good. It either becomes something worthwhile, or there's no effect for you.

    I think only good can come from the competition of CIBC and TD for the AP business. For one, we might see a US AP credit card again since TD is continually pushing into that market. 2nd, TD is going to spend a whole lot of dollars up front on buying miles and they'll then need to do a push to get new cardholders, this means bigger than average sign-up bonuses for new cards, and TD waives the fees on their premium CCs already for Select Service account holders. So, a new no-fee AP card (maybe 2) that likely fee-waived for the 1st year and more than likely possible to be waived permanently.

    Not to mention CIBC is going to have to do some sort of promo to fight a mass exodus of current Aerogold/infinite cardholders (mostly their higher-limit accounts) to TD when those cards change to some new reward scheme. I'm eagerly waiting to see what happens.
     
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  13. TRAVELSIG
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    TRAVELSIG Gold Member

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    This is what I am curious about as well.
     
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  14. C
    CIBC will not spend $100MM up front to get that contract and will have almost 6 months to put their own program in place more or less. They can spend a lot of advertising money to try and keep customers in their new program.
     
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  15. YULtide

    YULtide Gold Member

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  16. BackSlash

    BackSlash Silver Member

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    Well.... We've got Altitude, Distinction, CIBC is still waiving Aerogold fees until the end of August, and it looks like TD is taking over next year. The stage is set, let the games begin!
     
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  18. milchap
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    milchap Gold Member

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  19. tcook052
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    tcook052 Silver Member

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    CIBC isn't giving up completely as was noted in the PR:

    There are however ongoing active discussions among Aimia, TD, and CIBC about a broad framework that would see CIBC retain cards held by their existing banking customers, which represent about half the portfolio. TD would acquire the remainder. All parties will work vigorously to try to reach agreement, complete due diligence and finalize definitive documentation by Aug 26, 2013. There can be no assurances that an agreement will be reached.
     
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  20. milchap
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    milchap Gold Member

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    Can anyone figure out the TD/CIBC chaos ?
     
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  21. I hear it will take a judge to undo the CIBC/AIMIA structure
     
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  22. milchap
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    milchap Gold Member

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    With the speed of the courts, this could go past the deadline of I jan 2014.
     
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  23. milchap
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    milchap Gold Member

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  24. LETTERBOY and milchap like this.

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