MONTREAL - The company that runs the Aeroplan customer loyalty program says it's prepared to replace CIBC (TSX:CM) as its bank credit card partner at the end of this year unless it matches contractual terms offered by TD Bank (TSX:TD).
A shift to TD would mark the end of a long-standing relationship between CIBC and Aeroplan, which originated as Air Canada's frequent flyer program and is now a broader loyalty system operated by Aimia (TSX:AIM).
It has been known for some time that Toronto-based CIBC and Montreal-based Aimia were preparing for hard-bargaining as they approach the end of their current 10-year agreement.
CIBC was quick to respond to Aimia's announcement, saying it's reviewing the proposed terms to see if it will exercise its right of first refusal and that it will continue the Aeroplan business as usual in the meantime.
The bank has said previously that it was investing millions of dollars to set up its own loyalty-point credit cards.
Aimia says CIBC has until early August to exercise its contractual right to match the deal it has arranged with TD.