Many retailers across Canada offer their customers the opportunity to collect Aeroplan points when they make purchases with their credit cards. Aeroplan is a loyalty program created by Aimia Inc. in which customers save points towards flights and other vacation perks. Now, Aeroplan is in the process of being acquired by a “consortium led by Air Canada” for $450 million cash, according to The Chronicle Herald.
The group purchasing Aeroplan also includes TD Bank, CIBC, and Visa Canada Corp. By purchasing Aeroplan, Air Canada and these other companies agree to assume the approximate $1.9 billion in liability “associated with Aeroplan miles customers have accumulated.”
The consortium attempted in July to purchase Aeroplan from Aimia, at that time for $250 million cash and the liability assumption. That offer was rejected. The new deal, approved by Aimia, is expected to close in the fall of this year.
Air Canada chief executive Calin Rovinescu made a statement on behalf of the whole consortium on August 21st, saying “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.”
Source: thechronicleherald.ca – Air Canada-led Consortium Signs Deal To Buy Aeroplane Program From Aimia
Published: August 21, 2018