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Aim.to (Aeroplan)

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  • Jun 26th, 2017 10:27 pm
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[OP]
Sr. Member
Nov 13, 2013
591 posts
199 upvotes

Aim.to (Aeroplan)

I don't own this but the whole 15 year history of the company seems to border on a scam. Air Canada spins it off for $2 billion and then 15 years later basically destroys the company. (currently worth under $400 million) I guess due diligence buyer beware etc but seems shocking.
As an aside I am surprised that the stock didn't fall at all yesterday so looks like no word of this leaked out.
359 replies
Deal Addict
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Oct 9, 2008
3886 posts
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Thornhill
Looks like this is a good time to become a shareholder when it gets it's own 'bash' thread on this sub-forum Face With Stuck-out Tongue And Tightly-closed Eyes
Jr. Member
Nov 30, 2015
145 posts
29 upvotes
Toronto, ON
Jeenyus1 wrote:
May 11th, 2017 11:09 am
Looks like this is a good time to become a shareholder when it gets it's own 'bash' thread on this sub-forum Face With Stuck-out Tongue And Tightly-closed Eyes
I bought it too Jeenyus1, can't believe the panic selling..
Deal Fanatic
Feb 15, 2006
6595 posts
1259 upvotes
Toronto
AC stock is jumping. Up 10% today.
Deal Addict
Nov 9, 2013
1644 posts
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Edmonton, AB
Jeenyus1 wrote:
May 11th, 2017 11:09 am
Looks like this is a good time to become a shareholder when it gets it's own 'bash' thread on this sub-forum Face With Stuck-out Tongue And Tightly-closed Eyes
RFD indicator - I'm trying to hold and accumulate some cash; when that "Another Bloody Red Day in the TSX" thread pops up again then it's time to deploy capital Winking Face
Jr. Member
Nov 30, 2015
145 posts
29 upvotes
Toronto, ON
Not sure if anyone caught this from Air Canada's website:

Beyond June 2020, Air Canada expects to continue making Air Canada flights available for Aeroplan redemption. Star Alliance partner rewards will only be available through the new Air Canada program.

Source: https://www.aircanada.com/ca/en/aco/hom ... -know.html
Member
Oct 6, 2015
429 posts
213 upvotes
A turn-down in the economy (due to a housing crash like the mid 1990s), and AC will be quite thrilled to have Aeroplans' customers filling their otherwise empty seats.

This is likely just a big negotiating ploy.

Having said that, lots of people were scammed by the income trust bubble of the early-mid 2000s until Flaherty finally put a stop to it. Aeroplan is just yet another example of a minimal-value-added entity that was able to fetch top dollar when packaged into an income trust and sold onto an unsuspecting public.
Member
Dec 2, 2014
353 posts
101 upvotes
London, ON
jerryhung wrote:
May 11th, 2017 4:51 pm
Another RFD thread for stocks that tanked 60% - HCG and now AIM

Whole thing is just crazy, spin off FFP and then kill it
AC may as well buy back AIM for cheap now
That would be hilarious
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May 11, 2014
1407 posts
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Iqaluit, NT
socialmindset wrote:
May 11th, 2017 4:21 pm
Not sure if anyone caught this from Air Canada's website:

Beyond June 2020, Air Canada expects to continue making Air Canada flights available for Aeroplan redemption. Star Alliance partner rewards will only be available through the new Air Canada program.

Source: https://www.aircanada.com/ca/en/aco/hom ... -know.html
The thing people forget is that they are discontinuing rewards through Air Canada's partnership with star alliance airlines, but they may still offer rewards on these airlines through different means. It will just mean that Aeroplan will have to supply them in a different way.
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Dec 21, 2005
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Markham
xgbsSS wrote:
May 11th, 2017 5:23 pm
The thing people forget is that they are discontinuing rewards through Air Canada's partnership with star alliance airlines, but they may still offer rewards on these airlines through different means. It will just mean that Aeroplan will have to supply them in a different way.
Yup...both AC and Star Alliance flights will cost AIM more $$$ to purchase = points/miles devaluation (or lower margins for AIM)
:idea: :) :lol: :razz: :D
Jr. Member
Nov 30, 2015
145 posts
29 upvotes
Toronto, ON
xgbsSS wrote:
May 11th, 2017 5:23 pm
The thing people forget is that they are discontinuing rewards through Air Canada's partnership with star alliance airlines, but they may still offer rewards on these airlines through different means. It will just mean that Aeroplan will have to supply them in a different way.
Agreed, I wanted to point out that folks were saying Aeroplan was destroyed as you couldn't book flight rewards. Well based on this at the least you can book flights on AC and as you said you may very well be able to book Partner flights as well in the future through another mechanism. Heck I might buy more if it continues to dip tomorrow.
Member
Jan 19, 2013
275 posts
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Toronto
How likely would aero plan find a new partner? I'm thinking this is a good buying opportunity.
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May 11, 2014
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socialmindset wrote:
May 11th, 2017 5:40 pm
Agreed, I wanted to point out that folks were saying Aeroplan was destroyed as you couldn't book flight rewards. Well based on this at the least you can book flights on AC and as you said you may very well be able to book Partner flights as well in the future through another mechanism. Heck I might buy more if it continues to dip tomorrow.
Make no mistake, the announcement is somewhat devestating. Air Canada bought 15% of the miles issued by Aeroplan, but part of the value proposition was using it for Air Canada and Star Alliance partners. It will be interesting to see how customers will proceed with the changes in value proposition.
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