Aimia/Aeroplan - Court Battle vs Air Canada Option Here are some initial conversations from different Bullboard users about an Aimia/Aeroplan initiated lawsuit against Air Canada.
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Actually, an Aimia/Aeroplan initiated court battle would be a good idea.
It would buy time to negotiate...and even delay Air Canada from launching their own internal new loyalty program...maybe for a long time as court battles are generally quite lengthy.
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An extra $100 million to $150 million?
Humm...looks like they are pulling from their petty cash fund.
They will need to look a little bit harder and remember where they hid the gold.
Air Canada values their new loyalty program at over $2 billion (NPV) and they would need to build it from scratch. Lots of risks with that strategy. They may attract their elite frequent fliers...but it would be a tiny fraction of the current Aeroplan members.
Aeroplan 2.0 has a 5 million member lead over Air Canada's potential new program.
Plus, Aeroplan 2.0 has global potential.
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Calin Rovinescu
Has already said he'd top it up 100 to 150 Mill. at most in another news link somone posted yesterday.
So now were at $400 Mill. if taken would be the minimum cash portion.
Wonder if Mittleman is in the green at this price.
They have a board member, but the baord decision may not have to be unamious.
This could even go to a court battle before anything happens, nothing will be finalized anytime soon.