Air Canada, Aimia finalize Aeroplan agreement
Aimia and Air Canada have finalized the agreement by which the airline company will purchase the Aeroplan loyalty program. Aimia Canada, the owner and operator of the program, will be sold to Air Canada for $450 million in cash, as well as the transfer of responsibility for fulfilling future points redemptions with an estimated value of $1.9 billion. The transaction remains subject to regulatory and shareholder approvals. It is expected th be completed in January.
At the same time, Air Canada has finalized its agreements with TD Bank, CIBC and Visa Canada by which these companies will participate in the operation of a new credit card loyalty program. TD will be the primary credit card issuer for Air Canada's new loyalty program from its launch in 2020 to 2030, while CIBC will also offer credit cards under the program. These agreements are conditional upon the closing of the Aimia transaction. Air Canada remains in negotiations with American Express, which issues co-branded products Aeroplan, to continue its participation after 2020.