Aimia is living without Aeroplan
This blog has recommended that Aimia look very seriously at starting a lawsuit against Air Canada or hire a mediator.In fact, if this is not done then this blog believes categorically that the chairman of the board and several other board members (including Jeremy Rabe) should be evicted from the board.Aimia signed an agreement with Air Canada under duress after Air Canada unilaterally cancelled a 17 year agreement.So far this has not been done and so Aimia is learning to live without Aeroplan.
Second Quarter Results
Aimia tells shareholders that it's operating loss narrowed by 45% from Q2 in 2018.And adjusted EBITDA improved by 35%.Furthermore e.p.s improved from $.04 to$.29 per share.Free cash flow is expected to improve substantially in the second half.And AIM bought back $183 million of common shares since Q2 2018.
It is clear that Aimia needs new revenues to replace the substantial amount of revenues brought in by Aeroplan.But after all, it took 17 years to build up the Aeroplan program and it will take some time to build up other loyalty programs.Aimia tells shareholders that it has added a pan-Asian retailer,two clients in Australia and one in Canada.It has kept it's significant position in PLM,the Mexican loyalty program.The CEO adds that "Aimia has begun active discussions with attractive businesses that fit the strategic profile".Also this blog has recommended that it look closely at Unata which is an online loyalty and grocery company.This would make an excellent combination or merger and Aimia has reduced it's debt position significantly lately.
The Second Half
Aimia apparently has given up it's rights to a fair deal with Air Canada on the Aeroplan program.It is not going to sue and it will not insist on mediation.Perhaps Air Canada will throw in a few more sweeteners to a very sour deal.That aside Aimia tells shareholders that it is consistently adding new customers.But this blog believes that in order to get back to $4.00 it needs another acquisition.Another one besides Unata. http://www.caissepopulaire.ca/https://www.otpp.com/home
Second Quarter Results
Aimia tells shareholders that it's operating loss narrowed by 45% from Q2 in 2018.And adjusted EBITDA improved by 35%.Furthermore e.p.s improved from $.04 to$.29 per share.Free cash flow is expected to improve substantially in the second half.And AIM bought back $183 million of common shares since Q2 2018.
It is clear that Aimia needs new revenues to replace the substantial amount of revenues brought in by Aeroplan.But after all, it took 17 years to build up the Aeroplan program and it will take some time to build up other loyalty programs.Aimia tells shareholders that it has added a pan-Asian retailer,two clients in Australia and one in Canada.It has kept it's significant position in PLM,the Mexican loyalty program.The CEO adds that "Aimia has begun active discussions with attractive businesses that fit the strategic profile".Also this blog has recommended that it look closely at Unata which is an online loyalty and grocery company.This would make an excellent combination or merger and Aimia has reduced it's debt position significantly lately.
The Second Half
Aimia apparently has given up it's rights to a fair deal with Air Canada on the Aeroplan program.It is not going to sue and it will not insist on mediation.Perhaps Air Canada will throw in a few more sweeteners to a very sour deal.That aside Aimia tells shareholders that it is consistently adding new customers.But this blog believes that in order to get back to $4.00 it needs another acquisition.Another one besides Unata. http://www.caissepopulaire.ca/https://www.otpp.com/home
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