Air Canada Acquisition of Aeroplan Gets Regulatory Green Light

By Anna Breuer on 28 December 2018
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IMG_0487The consortium led by Air Canada received notice that it had cleared regulatory requirements to acquire Aeroplan from Aimia. Aeroplan is the airline’s frequent flyer program although it was spun off from the carrier 13 years ago.

The Canadian Competition Bureau issued a “no action letter” and the consortium also received the required confirmation under the Canada Transportation Act.

The acquisition is expected to close in January 2019. The deal had been originally announced in August.

The group, which includes TD Bank, CIBC, and Visa Canada, will pay 450 million Canadian dollars ($345 million). It will also assume approximately 19 billion Canadian dollars in frequent-flyer mile liabilities.

Once the acquisition is completed, Air Canada is expected to operate the Aeroplan program until July 2020, at which time it would launch a new frequent-flyer program.

Air Canada said that it remains in negations with American Express to secure its continued participation in the program after 2020.

(Photo: Accura Media Group)

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