After months of heavy negotiations between CIBC and TD to determine which bank will be allowed to issue Aeroplan cards, the loyalty card’s parent company Aimia announced this morning that it has entered a ten-year agreement with both banks, which will be effective January 1, 2014.

TD will become the loyalty card’s primary financial services partner, while CIBC will continue to issue Aeroplan credit cards, according to a release on the announcement.

Aimia has also entered into a purchase agreement with TD and CIBC, which it expects to close before the end of 2013. The transaction will see TD purchase nearly half (550,000 accounts as of June 2013) of the Aeroplan credit card portfolio from CIBC, while the latter bank will retain the remaining 630,000 Aeroplan accounts, which are currently held by its existing customers, according to the release.

“The agreements we are announcing today with TD and CIBC will put real momentum behind the transformed Aeroplan program we will launch in January and provide a strong and stable platform for growth in the Canadian business,” said Rupert Duchesne, group chief executive, Aimia, in the release.

An enhanced suite of Aeroplan Visa credit cards, with more benefits and earning opportunities, will be offered by both TD and CIBC, and cardholders may choose to migrate to either bank. Members will be able to continue accumulating miles while the transaction takes place, with TD and CIBC working together under an interim servicing agreement to ensure a smooth transition of customers.

“Aeroplan members have a lot to look forward to in 2014,” said Vince Timpano, president and CEO, Aimia Canada. “Not only will we be offering an exciting new suite of credit cards, January also marks the launch of Distinction, our innovative recognition program, [as well as] Market Fare Flight Rewards [which] will provide members with even more seats at great value.”