RE:Investors Relations Responsenm198410 wrote: The following is the email response i received late last night:
Thanks for your email.
Since 2005, as the coalition model has evolved, a number of partners have joined and left our coalitions. And we’ve continued to look at ways members earn and burn in our programs through transitions. As we plan for contract renewal discussions, we continue to evolve our model and offering to ensure a mutually acceptable return structure with current and future anchor partners. That’s very much where we expected our discussions with Air Canada would lead. But having received formal notice from Air Canada, the company has been in active discussions with various parties with a view to securing new long term commercial and strategic relationships post 2020. We believe we have a unique set of assets which we can leverage in those discussions but it is premature to say any more. We are also making progress on plan to remove $70 million of cost from the company through its business review.
On redemptions, it is helpful to remember that the average member redeems once every two years so having only a few weeks’ of data constrains our ability to comment on redemption patterns yet.
Please be assured I understand your desire to hear more. We will communicate as and when we can but know that our Q2 results are scheduled for release on 9th August 2017.
Best regards,
Karen Keyes
SVP, Investor Relations
The above highlighted portion seems to hint that the management is still preparing for contract renewal negotioations with AC. Also from the last sentence, it doesnt look convincing that a news release is expected before Q2 results.
Thanks for sharing.
I viewed this as very negative.
The way I read it,it looks like they were in discussions with AC,who then decided to terminate the relationship after 2020.
I'd like to know why AC made such a drastic decision....