Canadian Press reports Tuesday that a group led by Air Canada will buy the Aeroplan loyalty program from Aimia Inc. The customer incentive program will return to Air Canada some 34 years after it was created there in 1984. The buyers group includes the airline, TD Bank, CIBC and Visa Canada Corp. It will pay $450 million in cash and assume the approximately $1.9-billion liability associated with Aeroplan miles customers have accumulated. Over the years, the credibility of Aeroplan declined because of the difficulty of redeeming points This seems to be especially true after Air Canada sold it off in 2002. Air Canada said: “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 price is up from an initial offer of $250 million in cash and the assumption of the reward point liability in July that was rejected by Aimia. The deal is expected to close this fall.
