Air Canada Consortium Bids For Aeroplan Loyalty Business

Air Canada, Visa and two Canadian banks have made an offer to acquire the Aeroplan frequent flyer business from loyalty analytics company Aimia.

The consortium, comprising Air Canada, Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, and Visa Canada, have offered to buy Aeroplan for approximately CAD$2.25 billion (USD$1.72 billion). The offer comprises a CAD$250 million cash element, and the assumption of approximately CAD$2 billion of Aeroplan points liability.

The group is pushing for a quick response from Aimia, and has set an expiry date for the offer of August 2, 2018.

In a statement, the consortium said the takeover would be a positive outcome for Aimia shareholders and Aeroplan members, and would allow a smooth transition to Air Canada's new loyalty programme.

Aimia, formerly Groupe Aeroplan, was spun off from Air Canada in 2002, with the airline exiting the company completely in 2008.

Although Aimia continued to manage Aeroplan as Air Canada’s frequent flyer programme, the airline announced it would launch its own loyalty scheme in 2020.