Air Canada will stop using Aeroplan, run by Aimia Inc., and launch its own customer reward program in 2020. The Montreal-based company runs Aeroplan and other customer reward programs for various businesses including Air Canada, its original customer. Aimia says the dividend suspension is required following Air Canada’s decision to stop using Aeroplan and launch its own customer reward program in 2020. Aimia says a capital impairment test required by the Canada Business Corporations Act prevents it from paying the dividends, even though it has the liquidity to do so. Aimia says it’s actively working on forming new long-term relationships for the period after Air Canada departs and is making progress on cutting $70 million of costs from its business.

Source: thestar June 14, 2017 19:30 UTC