Behind-the-scenes dealing with two major banks over the right to stamp their Visa card with the Aeorplan name is now being played out in public. There’s probably a good reason for that as Aeroplan — which is operated by Aimia Inc.– seeks to enlist cardholder support to improve its position with the banks. Aimia says it has an open mind about replacing CIBC as its bank credit card partner at the end of 2013 unless the Commerce matches contractual terms offered by TD Bank. Aeorplan has been a CIBC product for as long as most of its cardholders can remember. It started as an Air Canada frequent flyer program. In recent years Aeroplan has evolved into an extensive loyalty scheme operated by Aimia Inc. “It’s basically a battle for Canada’s most affluent credit card holders. That’s a key and attractive market to essentially own,” Kenric Tyghe, industry analyst at Raymond James told the Star. The potential bidding war between the banks was set up as Aimia announced what it called groundbreaking changes to Aeroplan to take effect Jan. 1, 2014. The company’s new Distinction recognition program will reward top-accumulating members with flight reward benefits, bonus mile offers, and preferential treatment. As well, Aeroplan plans to cancel its current policy where unredeemed miles expire after seven years. Instead, miles will not expire as long as members stay active in the program with at least one accumulation or redemption activity every 12 months. ,
