Aimia confirmed TD on Monday as Aeroplan’s new credit card partner for a 10-year period beginning Jan. 1.
The announcement came after Aimia released details of its new credit card agreement in June, and CIBC decided not to exercise its right to match the terms of the agreement on or before Aug. 9.
“We are delighted to confirm TD as our new financial credit card partner,” Rupert Duchesne, the group chief executive for Aimia, said. “TD is a leading financial institution with a strong Canadian retail and global banking franchise that shares our customer-centric vision for Aeroplan and that is committed to building the program with us. We are confident that the strength of the transformed Aeroplan program will drive increased engagement and market share among premium Canadian consumers.”
Aimia, TD and CIBC are in active discussions regarding a framework that would allow CIBC to retain cards held by their existing bank customers—approximately 50 percent of the portfolio—while TD would acquire the remainder.
CIBC has advised Aimia that it would challenge the validity of the notice and proposed agreement, adding that it was reserving its rights to take any legal action available. Aimia has said, however, that CIBC’s statements are meritless and that it would defend any claim made by CIBC.
The current agreement between Aeroplan and CIBC is effective until Dec. 31. Members can continue to earn miles on their co-branded cards for the rest of the year.