The partnership of Toronto Dominion (TD) Bank with Aimia, the company behind Air Canada’s Aeroplan rewards program, was finalized this week. TD Bank will become its primary credit card issuer for the next ten years. The partnership is expected to result in a new co-branded lineup of Aeroplan credit cards, including one for U.S. residents.
Canadian Imperial Bank of Commerce (CIBC), which has been the issuer of Aeroplan cards for the past two decades, will split their credit card portfolio with TD Bank under the new agreement, which becomes effective January 1, 2014.
CIBC stood to lose the lucrative portfolio after not coming to terms with Aimia on the renewal of its partnership earlier this year. This past summer Aimia cut a deal with TD to be the exclusive issuer of Aeroplan cards. But CIBC renegotiated and the parties settled. Both banks will offer a new suite of Aeroplan Visa credit cards with expanded earning opportunities and enhanced benefits.
New Aeroplan Reward Programs
In January Aeroplan will be launching the Distinction Rewards and Market Fare Flight Rewards. Distinction is a tiered recognition plan, offering enhanced benefits for top earning members, including bonus miles, preferred treatment, bonus offers and flight reward benefits. With this new program, miles will no longer expire, and mileage rates for rewards will be reduced by up to 33%. Market Fare Flight Rewards will offer a reduction in mileage rates of up to 20%.
TD Bank, is a Canadian bank headquartered in Toronto. It is currently the sixth largest bank in the U.S., and the second largest in Canada. Earlier this year TD Bank acquired another large credit card portfolio. In March the bank inked a deal with Target, acquiring their U.S. Visa and private label card portfolio.
Aeroplan is an alliance loyalty rewards program, headquartered in Montreal, Quebec, Canada. It was launched by Air Canada to build their frequent flier program and is now owned by Aimia, a global loyalty management company.