Air Canada-led consortium signs deal to buy Aeroplan program

The deal would acquire the Aeroplan loyalty program from Aimia Inc

A consortium led by Air Canada has reached a deal to acquire the Aeroplan loyalty program from Aimia Inc.

The group, which includes TD Bank, CIBC and Visa Canada Corp., has agreed to pay $450 million in cash and assume approximately $1.9 billion of Aeroplan miles liability.

RELATED: Raccoon delays Air Canada flight by nearly 7 hours

The price is an improvement from an initial offer of $250 million in cash and the assumption of the reward point liability in July that was rejected by Aimia.

The deal, which is supported by Aimia’s board and Mittleman Brothers, Aimia’s largest shareholder, is subject to shareholder approval and other closing conditions.

RELATED: Air Canada union files human rights complaint

Air Canada created Aeroplan as in-house loyalty program, but it was spun off as an independent business as part of a court-supervised restructuring of the airline.

The future of the program has faced questions since Air Canada announced last year that it planned to launch its own loyalty rewards plan in 2020 when its partnership with Aimia expires.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

New goalkeeper training centre opens in Cloverdale

Nestled on Surrey-Langley border, facility offers full range of training programs

‘Not the first time’ for driver clocked at excessive speed in South Surrey

Police say vehicle was doing 148 km/h in 80 km/h zone

Surrey School’s entrepreneurship program expands

‘YELL’ now offered at Queen Elizabeth, Semiahmoo

COVID-19: Update on the pandemic in Surrey, White Rock and beyond

JULY 2: Here’s the update on the pandemic in Surrey, White Rock and beyond for Thursday, July 2

‘This year is unlike any other’: Trudeau delivers Canada day address

Sophie Gregoire Trudeau and the Prime Minister release video celebrating the national holiday

Canada Day tractor incident kills three children, injures seven in Quebec

The tractor driver has been arrested following the accident

Undercover operation exposes prominent human trafficking problem in Greater Victoria

VicPD’s Operation No More took place in mid-June at a local hotel

Tsilhqot’in Nation demands meeting with feds on declining Fraser River chinook stocks

The Nation wants to partner with DFO to rebuild and recover the stocks

PHOTOS: Dual rallies take over Legislature lawn on Canada Day

Resist Canada 153 highlighted colonization and genocide, Unify the People called COVID a hoax

Gov. General honours Canadians for bravery, volunteer service

Five categories of winners presented on Canada Day

COVID-19: Should non-medical masks be mandatory in Canada?

New poll shows Canadians are divided on the rules around mandatory masks

Northbound lane of Coquihalla closed after vehicle incident near Hope

A northbound lane is closed just north of the Great Bear Snowshed, according to DriveBC

Most Read