Air Canada acquired the Aeroplan customer loyalty plan from Aimia Canada Inc., which it will launch in 2020 with the aim of offering benefits and greater rewards to users.
“With today’s purchase of Aeroplan, a big step is taken in transforming one of the most popular loyalty programs in Canada. We confirm to Aeroplan members that their existing Aeroplan Miles will be respected and can be redeemed individually within our new program, to be launched in 2020. With this transaction, customers will have the certainty that they can continue to exchange Aeroplan Miles with security that their current Air Canada Altitude status and privileges will be respected, ”said Calin Rovinescu, Air Canada President and CEO.
Since the airline announced that it would launch its own loyalty program, it has conducted extensive consultations with more than 30,000 customers to identify the key attributes of the plan. Users expressed their preference to use their Aeroplan Miles in the airline’s new loyalty program, which is expected to be the best in the country, as it will have attractive features, such as: The best reward value for Air Canada flights, plus unmatched access to more than 40 airline partners, including the Star Alliance global network, Canada’s best travel rewards credit cards offered by TD, CIBC and American Express, plus ways to earn and redeem points for travel, class upgrades, on-board experiences and products, and the enhanced experience when traveling with friends and family, among others.
Following the conclusion of the Aeroplan purchase, Air Canada, The Toronto-Dominion Bank (“TD”), Canadian Imperial Bank of Commerce (“CIBC”) and Visa Canada Corporation (“Visa”) finalized several related business agreements. with and in support of the acquisition, including the credit card loyalty program and network agreements for future participation in the new Air Canada loyalty program. In addition, the airline also signed an agreement with American Express Canada, which also issues co-branded Aeroplan products, to ensure its continued participation in the loyalty program after 2020.
The total purchase price for the acquisition consists of $ 450 million in cash plus $ 47 million in cash for pre-closing adjustments. Pre-closing adjustments refer to assumed net liabilities lower than expected. The purchase price is subject to post-closing adjustments and the acquisition also includes the assumption of responsibility for Aeroplan Miles. Air Canada received payments from TD and CIBC totaling $ 822 million. Visa also made a payment to Air Canada, and assuming the agreement with American Express is completed, AMEX will do the same. Additionally, TD and CIBC made payments to Aimia Canada Inc, currently Air Canada’s subsidiary, for a total amount of $ 400 million in advance payments that will be applied to future monthly payments in respect of Aeroplan Miles.
