It initially announced its intention to cut ties with Aeroplan last year to begin its own loyalty rewards program in 2020, Air Canada announced it was launching a bid to buy Aeroplan outright last month.
The airline, in partnership with TD, CIBC, and Visa it has made a proposal to Aimia Inc. (Aeroplan’s parent company), “to acquire its Aeroplan loyalty business (including approximately $2 billion of Aeroplan points liability at March 31, 2018) for $250 million in cash.
But it seems that deal wasn’t sweet enough for Aimia, who announced plans to launch its own charter flights once its partnership with Air Canada is over.
A few weeks after the initial proposal, Air Canada and its partners have announced they entered an agreement with Aimia.
On Tuesday, Air Canada said that they will be be acquiring Aeroplan from Aimia for $450 million in cash.
Air Canada, TD, CIBC, Visa and Aimia Reach Agreement in Principle for Acquisition of Aeroplan Loyalty Business https://t.co/StI7FXxgI7
— Air Canada (@AirCanada) August 21, 2018
“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 Calin Rovinescu, President and CEO of Air Canada, on behalf of the consortium. “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.”
The transaction is subject to negotiation of definitive agreements and other conditions, and its completion is expected in fall 2018.
With files from Eric Zimmer.