MONTREAL — Air Canada has finalized its agreement, first announced in August, to buy the Aeroplan loyalty program from Aimia Inc. for $450 million in cash.
Under the deal, Air Canada will also assume $1.9 billion of Aeroplan miles liability.
Air Canada says it has also signed agreements with TD Bank, CIBC and Visa that will see them continue to be part of the Aeroplan loyalty program.
“We are extremely pleased to have concluded the agreement for the purchase of Aimia Canada and to have reached definitive agreements on our co-branded credit card programs with each of TD and CIBC. Subject to closing the purchase transaction, these agreements will produce the best outcome for our customers as well as those of our partners as they will facilitate a smooth transition to our new loyalty program launching in 2020, safeguarding all Aeroplan Miles and providing convenience and value for millions of Canadadians,” said Calin Rovinescu, President and CEO of Air Canada.
Under its deal, TD will pay Air Canada $622 million plus an additional $308 million that will be applied to future purchases of loyalty points.
CIBC will pay $200 million to Air Canada, plus an additional $92 million that will be applied to future monthly payments for Aeroplan miles. Visa will also be making a payment to Air Canada.
The airline says it is still in talks with American Express, which also issues Aeroplan co-branded cards, to secure its continued participation.
With file from The Canadian Press
