08/12/2013 09:22 EDT | Updated 10/12/2013 05:12 EDT

TD Bank ousts CIBC for Aeroplan partnership

TD Bank will be Aeroplan's next customer loyalty program partner starting in January 2014, ending a decades-long relationship between the flight rewards program and CIBC.

Current CIBC Aeroplan credit card customers will not lose any of their Aeroplan points. But those customers will also not earn any new points unless they switch to a TD card offering the points system starting in January.

CIBC's contract with Aimia, the Montreal-based company that operates the reward program, will end at the close of 2013. CIBC had been purchasing air miles from Aimia for 22 years, then awarding them to customers who use its Aerogold credit card.

When CIBC and Aimia failed to agree on new terms, the company opened bidding to other financial institutions.

TD offered to pay Aimia $100 million up front and to increase by 15 per cent the amount the company receives per air mile sold.

Aimia offered CIBC the chance to match TD's bid, but CIBC allowed Aimia's deadline to pass. Analysts have speculated CIBC is likely to start its own loyalty credit card program.

TD's new 10-year contract with Aimia will begin Jan. 1 2014.