RE:RE:Air Miles stock is $245 a shareThere are 3 possible outcome with Aimia:
- AC buys them out and sells off international and 3rd party stakes (nectar, Airmiles midleeast, etc...)
- Don't forget that Aeroplan buys 8% of capacity on Air Canada that is a hell lot of garanteed revenue on all flights.
- They find another redeeming partner
- What hurts the most with Air Canada contract is that thye were buying seats at a fixed price which was the basis of their Fix millage program. But lately their Market rate tickets have been making up more and more of their redemptions specially since AC is charging crazy fuel surcharges and taxes.
- They get bought out buy someone else
- 5 million members, 500M in cash, 200M free cash flow and a debt that they can mitigate but devaluating the point value at any time. This is a gold mine. would be the worst scenario from a investors perpective as this is way undervalued.
Even with the last rally this company is the safest multibagger on the market. The selloff was because of the misunderstandingrelated to the business and because of the fear that the members would burn pts too quickly. Don't know about you but most of the ppl i know don't even really care about this issue lots didn't even know that Aeroplan is NOT AC. They are just happy to accumulate and redeem 30 months later they don't give a sh!t about Air Canada or Sunwing or Westjet. They want to get to destination for the chepest price. They are also frequent shoppers and not frequent flyers. AC leaving Aeroplan is a mistake or a plan.... either way tones of money to be made on this one.