Investing

Aim.to (Aeroplan)

  • Last Updated:
  • Sep 19th, 2017 11:26 pm
Tags:
None
Deal Fanatic
Jun 26, 2011
9826 posts
829 upvotes
Still no floor in sight. Hopefully AIM is buying back at these levels.
Deal Fanatic
Feb 15, 2006
6693 posts
1322 upvotes
Toronto
There is a floor, 0.

Unlikely that AIM is buying back at these levels. They are scrambling to stop the bleeding, and will plan to devalue aeropeso points. I'm trying to find flights to use up my ae points.

Just looked at flights to Germany. ae wants 120,000 points for 2, plus over $1400 in tax/scamcharges. For $200 more I can buy the flights outright. Not good value for those ae points. Looking for other flights to get rid of those ae points.

Many people had or will soon be cancelling the ae affiliated credit cards, knowing the ae points earned will not be worth much. We have Amex reward points, and will not be converting to ae. AIM is going down. Get out while you can.
Deal Addict
User avatar
May 11, 2014
1534 posts
602 upvotes
Iqaluit, NT
Arrgh wrote:
May 18th, 2017 1:29 pm
There is a floor, 0.

Unlikely that AIM is buying back at these levels. They are scrambling to stop the bleeding, and will plan to devalue aeropeso points. I'm trying to find flights to use up my ae points.

Just looked at flights to Germany. ae wants 120,000 points for 2, plus over $1400 in tax/scamcharges. For $200 more I can buy the flights outright. Not good value for those ae points. Looking for other flights to get rid of those ae points.

Many people had or will soon be cancelling the ae affiliated credit cards, knowing the ae points earned will not be worth much. We have Amex reward points, and will not be converting to ae. AIM is going down. Get out while you can.
You have to book airlines that don't charge fuel surcharges. Look for Swiss, Brussels AIrlines, or United should work. Try from Toronto or Montreal and then book your domestic.
Support your local Credit Union! PM for different options available!
[OP]
Sr. Member
Nov 13, 2013
611 posts
213 upvotes
xgbsSS wrote:
May 18th, 2017 1:37 pm
You have to book airlines that don't charge fuel surcharges. Look for Swiss, Brussels AIrlines, or United should work. Try from Toronto or Montreal and then book your domestic.
This is what 100% Aeroplan will be losing access to and why people will be rushing to spend their points which will not be good for next few years results.
Deal Fanatic
Feb 15, 2006
6693 posts
1322 upvotes
Toronto
xgbsSS wrote:
May 18th, 2017 1:37 pm
You have to book airlines that don't charge fuel surcharges. Look for Swiss, Brussels AIrlines, or United should work. Try from Toronto or Montreal and then book your domestic.
People know that. But the seats have to be available, to book.
Deal Addict
User avatar
May 11, 2014
1534 posts
602 upvotes
Iqaluit, NT
Arrgh wrote:
May 18th, 2017 2:12 pm
People know that. But the seats have to be available, to book.
Some people don't,,, sorry for trying to help :rolleyes:
Support your local Credit Union! PM for different options available!
Deal Addict
User avatar
May 11, 2014
1534 posts
602 upvotes
Iqaluit, NT
fogetmylogin wrote:
May 18th, 2017 1:56 pm
This is what 100% Aeroplan will be losing access to and why people will be rushing to spend their points which will not be good for next few years results.
Definitely, The comment I made to Arrgh was more to try to see if he wasn't aware of the partnership so he doesn't have to pay so much in fuel surcharge.
Support your local Credit Union! PM for different options available!
Deal Guru
Jun 30, 2006
13849 posts
2365 upvotes
Toronto
Damn shouldn't have bought this stock at $4.
Deal Addict
Nov 24, 2013
4039 posts
1098 upvotes
Kingston, ON
Will they suspend/lower dividend or keep it going? It's not like the program partnership is ending tomorrow or anything...
Newbie
Jan 13, 2008
85 posts
26 upvotes
This is a textbook falling knife with a dead cat bounce thrown in for good measure. Brutal.
Deal Expert
May 30, 2005
38962 posts
1261 upvotes
Richmond Hill
Mike15 wrote:
May 18th, 2017 6:26 pm
Will they suspend/lower dividend or keep it going? It's not like the program partnership is ending tomorrow or anything...
I believe the June dividend has already been announced, so anyone buying now should at least be guaranteed one dividend payment.

I've never heard of dividends that are announced get cancelled, but I suppose maybe it's possible, who knows.
**BRAND NEW** BEAUTYREST Black Memory Foam Pillow - $55ea or $100/pair <<PRICE DROP>>
**Reg $200 each!**

Silver Coins | BeautyRest Black Memory Foam Pillow
Heatware | RFD Feedback
Deal Addict
Sep 1, 2007
3488 posts
270 upvotes
Markham
What are the chances of them negotiating a different contract with Air Canada and getting them back? I'm assuming pretty slim. Does the positives of air Canada's having their own loyalty program outweigh the positive of renegotiating with Aimia? Since it's under star alliance does that mean they lost others along with Air Canada? I still feel like this stock is worth way more than it's going for now. I guess time will tell.
Deal Addict
User avatar
May 11, 2014
1534 posts
602 upvotes
Iqaluit, NT
IGetMoney wrote:
May 18th, 2017 7:03 pm
What are the chances of them negotiating a different contract with Air Canada and getting them back? I'm assuming pretty slim. Does the positives of air Canada's having their own loyalty program outweigh the positive of renegotiating with Aimia? Since it's under star alliance does that mean they lost others along with Air Canada? I still feel like this stock is worth way more than it's going for now. I guess time will tell.
Here is the thing about getting a new partner. If getting a partner is so valuable, why didn't other programs such as Airmiles try to partner with Westjet, or other airlines?

Air Canada has pretty much all the bargaining power they have at the moment. The only difference would have been if there was more competition in Canada. For example, if Canadian Airlines still existed( they were part of OneWorld) let's say, the move Air Canada did abandoning Aeroplan would likely not have occurred. The reason being is that you are abandoning the loyalty that was saved up from Air Canada customers. Air Canada is already weak comparatively on brand loyalty, so abandoning Aeroplan would have meant a good part of customers moving toward Canadian Airlines. The thing is Air Canada doesn't have equivalent competition. Westjet doesn't align with other international airlines to the extent Air Canada does, nor has it the international network, or loyalty program. American carriers don't have the domestic connections. Porter is too small.

Westjet could possibly partnered with Aeroplan, but the thing was Air Canada announced their intention to not renew the contract early. This presents a dilemma. Westjet cannot announce partnering with Aeroplan before the contract is up in 2020 because this would cause huge contract issues. As well, this would give AIr Canada 3 years head start to know how to construct a better program to compete with Aeroplan if it were with Westjet. Westjet would also then have to contend with the lack of alliance partnerships making the program rather ineffective. So Westjet would likely go the independent route and announce partnerships to the remaining two airline alliances later on.

Aimia has one option. It has to become a better competitor to Airmiles. It has the resources and climate to do this. Airmiles messed up their brand over the last year with the expiration issue. Aeroplan is relatively easier to book than Airmiles and is less restrictive. Aeroplan should then use it's clout to get more retail partners, and just make partnerships with airlines by buying capacity, but not linked with Star Alliance or any of the airline partnerships. The thing is Airmiles is profitable and successful as a company that can make a profit, and this is without the Air Canada or any airline partnership. Aimia can still be profitable. The only thing the Air Canada partnership was a cushion. It was "guaranteed" revenue and value proposition. That means the company has to now fight for it's revenue now and produce a value proposition to it's customers to stick by. Whether they can do that is another question. They still have 3 years of cashflow to use before it drys up. The company using it to just buyback shares is not a good sign. The best thing they should do is suspend the dividend , regroup and invest in the program so that retailers want to partner with them. They need to create the new value proposition now. reforming the program so that people will still want to earn Aeroplan even without the AIr Canada partnership, is vital.

So it isn't impossible... but management has to start moving
Support your local Credit Union! PM for different options available!

Top