Aeroplan Sold Off to Group Including Air Canada

Aeroplan Sold Off to Group Including Air Canada

CANADIAN PRESS -- 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.

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.

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.

What will it mean for you and your points? Although there are still many questions still unanswered, Air Canada's CEO said in a statement

We are pleased to see that an agreement in principle has been reached as Aeroplan members can continue to earn and redeem with confidence. This transaction, if completed, should produce the best outcome for all stakeholders, including Aeroplan Members, as it would allow for a smooth transition to Air Canada's new loyalty program launching in 2020, safeguarding their miles and providing convenience and value for millions of Canadians."

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