Air Canada rival eyes Aeroplan

Aeroplan operator Aimia Inc. and the Oneworld airline alliance confirmed Thursday they are in talks about a potential partnership for the loyalty points program, the same day a takeover offer led by Air Canada is set to expire.

The Oneworld alliance, whose 13 members include British Airways, American Airlines and Cathay Pacific, is a direct competitor to the Star Alliance airline network, of which Air Canada is a member.

Oneworld said it had agreed to explore ways of working with Aeroplan on a partnership that would allow Aeroplan members to earn and redeem rewards on some Oneworld flights, once Aimia’s partnership with Air Canada ends in 2020.

Aimia declined to elaborate on its strategic talks, news of which comes as the clock ticked down on Air Canada’s stated Aug. 2 midnight deadline on a bid for the Aeroplan program.

Air Canada said last week that Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Visa Canada wants to buy the Aeroplan loyalty business to allow customers to transfer their points to its own platform in 2020.

The group has offered to pay Aimia $250 million and assume about $2 billion in liabilities, making its offer worth about $2.25 billion.

Air Canada did not immediately return a request for comment on the rival discussions, or whether it would extend the bid timeline.

Air Canada will likely have to raise its cash bid above the $250 million offer as Aimia continues to outline alternative plans, said Shine.