Air Canada-led Consortium to Acquire Aeroplan Frequent Flyer Program

A consortium led by Air Canada announced plans on Tuesday 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 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.

“We are pleased to see that an agreement in principle has been reached as Aeroplan members can continue to earn and redeem with confidence,” said Air Canada chief executive Calin Rovinescu in a statement.

Air Canada had offered 250 million Canadian dollars for Aeroplan in July but that offer was rejected by Aimia.

The deal, which is subject to shareholder approval and other customary closing conditions, is expected to close this fall.

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.

(Photo: Accura Media Group)