Air Canada is taking back control of the valuable Aeroplan loyalty business. The Air Canada-led consortium including TD Bank, CIBC and Visa Canada Corp. announced that it had struck a deal in principle to acquire Aeroplan, agreeing to pay $450 million in cash and assume the $1.9-billion liability associated with Aeroplan miles customers have accumulated.

The new offer almost doubles the consortium’s initial offer of $250 million in cash and the assumption of the reward point liability. That offer, made in July, was rejected by Aimia, however, Aimia maintained that it would keep the door open to a ‘fair deal’ from the group.

 

 

The transaction is expected to close this fall. The future of the program has faced questions since Air Canada announced last year that it planned to launch its own loyalty rewards plan in 2020 when its partnership with Aimia expires.

Air Canada created Aeroplan as its in-house loyalty program, but it was spun off as an independent business as part of a court-supervised restructuring of the airline.

For more information, visit aircanada.com