TD Wins Aeroplan Sweepstakes. Ousts CIBC.
The deadline has passed and CIBC has not matched TD’s offer to retain the Aeroplan partnership. As of January 1st TD will start to issue Aeroplan credit cards.
According to CIBC, instead of matching the entire offer it is trying to negotiate the retention of its relationship accounts (credit card holders it has a core banking relationship with), in return for selling up to 50% of the Aerogold portfolio to TD. It seems that CIBC is keeping the threat of litigation ever-present if TD does not agree to a negotiated outcome, as it continues to argue that the Terms presented to them to match, were not consistent with their contractual rights outlined in their agreement with Aeroplan.
A split of the portfolio would seem to be the best outcome for all parties. It would allow CIBC to retain its most valuable relationships with its core banking clients. It would allow TD to acquire the bulk of the portfolio without having to solicit them in the marketplace. The only party to win in that war would be the consumer, as both CIBC and TD would battle it out for their business through annual fee waivers, sign-up bonus points and the like. And finally, it would give Aeroplan the certainty that 50% of the accounts would come on board immediately.