After some more back and forth, it looks like Aeroplan is finally being bought out by the Air Canada, TD, CIBC, Visa consortium. Looks like me that Aimia was not happy with the initial offer that they rejected at the beginning of the month.
The transaction is obviously not final yet, but the current agreed purchase price is $450 million in cash and the assumption of approximately $1.9 billion of Aeroplan Miles liability.
So where does this leave Porter and Air Transat? The death of the valuable transferable miles option?
My initial thought as a consumer is huge disappointment. I would have much rather Aeroplan team up with Porter and Air Transat, to compete with Air Canada’s new program. I cannot see how this move helps increase the competition in the Canadian market. It gives Air Canada too much market share and decreases their incentive to improve their program.
As a business move, this probably makes more sense for Aimia and Air Canada, so that they do not have to go through so much restructuring.
Either way, my hope is that this will benefit consumers in the long run, but it is difficult to be optimistic at the moment. I hope that I am very wrong this time.