Aeromexico became the latest North American airline to release liquidity from its loyalty programme after announcing that Canadian investment firm, Aimia, had increased the amount it would inject into the carrier by $50 million to $100 million. The loan will backed against Club Premier, the airline’s loyalty card programme.
Aimia announced in a statement that it had changed the terms of the commercial agreement (CPSA) between Aeromexico and PLM Premier, the operator of the Club Premier loyalty program.
The changes made to the CPSA include a 20-year extension of the current term to September 13, 2050.
Following the initial US$50 million loan to Aeromexico by PLM made under the existing intercompany loan facility upon the signing of the letter of intent between Aimia and Aeromexico announced on May 12, 2020, an additional $50 million advance to Aeromexico by PLM through pre-purchases of award tickets was provided with the execution of the amendments to the CPSA.
This financial support totals US$100 million and is secured by Aeromexico's stake in PLM.
Aimia and Aeromexico have also agreed to modify the Shareholders Agreement to grant Aeromexico a 7 year option to purchase Aimia's 48.9% equity interest in PLM at a minimum price of US$400 million for Aimia's equity interest or at an Adjusted EBITDA multiple of 7.5x, whichever is greater, plus Aimia's pro-rata share of cash, net of any third party financial debt.
Aimia chief executive Phil Mittleman, said, "I am excited to announce the signing of the definitive agreement with Aeromexico which was made possible as a result of our strengthened and collaborative partnership. We are very pleased to be in a position to utilise the robust cash flow and financial attributes of PLM to support our airline partner during this challenging time.
Looking ahead, we believe PLM will serve an instrumental role in assisting Aeromexico to incentivise their best revenue-producing customers to continue flying with them as well as provide a competitive differentiation to attract and acquire new customers.