Topic: How To Invest

Stock Pickers Digest Hotline – Friday, May 12, 2017

Article Excerpt

AIMIA INC., $3.85, symbol AIM on Toronto, dropped 57% this week after Air Canada said it would launch its own loyalty program in 2020. This would replace its current loyalty program with Aimia. Air Canada’s contract with Aimia will remain in effect until June 29, 2020. Until then, members will be able to both earn and redeem Aeroplan Miles for Aeroplan Rewards. That includes flights with Air Canada and its Star Alliance partners (United Airlines, Air China, Lufthansa and so on) in accordance with the Aeroplan program. Air Canada, along other Star Alliance partners, is Aimia’s largest redemption partner at roughly 47%. However, even after 2020, Aeroplan members can continue to redeem Aeroplan miles for Air Canada flights, although not for Star Alliance partner flights. At the same time, Air Canada represents only about 11% of Aimia’s billings (Aeroplan miles earned when booking Air Canada flights). That’s equal to CIBC’s contribution at 11%, but is behind TD’s at 18% and U.K.-based Sainsbury’s at…