CIBC challenges deal to make TD the issuer of Aeroplan credit cards

Mon Aug 12, 2013 11:01am EDT
 
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Aug 12 (Reuters) - Canadian Imperial Bank of Commerce (CIBC) has challenged Aimia Inc's deal with Toronto-Dominion Bank to replace CIBC as the issuer of Air Canada's Aeroplan credit cards, saying it wants to retain about half of the accounts.

Aimia, which runs the popular frequent flyer program, struck a 10-year deal with TD in June to replace CIBC after Aimia and CIBC were unable to come to an agreement to extend their contract.

CIBC, which had been the main Aeroplan card company for more than two decades, has said it was not satisfied with the way Aimia selected its rival.

CIBC said on Monday it wanted to sell about 50 percent of its current Aerogold portfolio to TD, while retaining the Aerogold credit card accounts held by clients who have a broader banking relationship with CIBC.

The Aerogold rewards card allows customers to accumulate Aeroplan points that can be cashed in for travel on Air Canada and its partner airlines, as well as for merchandise.

All three companies said they were working to reach an agreement by Aug. 26. CIBC said it could seek legal action if there was no satisfactory agreement.