Aeroplan sale to Air Canada completed

MONTREAL — Air Canada has completed its purchase of the Aeroplan loyalty program from Aimia Inc., assuring customers their miles will be honoured on a “one-to-one basis” when the airline’s new rewards program launches in 2020.

The deal marks a reunion for Aeroplan and Air Canada, which spun off the points program in 2005 under a restructuring.

It will also mean better access to customer data for Air Canada — Aeroplan has about five million members — and positions the Montreal-based airline to compete against the PC Optimum loyalty program run by Loblaw Companies Ltd., which boasts about 16 million members.

Aimia used the majority of its gross proceeds from the sale, which totalled roughly $497 million after adjustments related to working capital, to repay debt.

About half of Aimia’s 1,500 employees will go to Air Canada.

In addition to the cash payment, Air Canada has assumed about $1.9 billion in liabilities to points holders, partially backed by two banks that offer Aeroplan credit cards.

Toronto-Dominion Bank and Canadian Imperial Bank of Commerce paid Air Canada about $822 million, on top of an undisclosed payment from Visa Canada Corp. TD and CIBC also made prepayments of $400 million in total to the Aeroplan — now Air Canada’s subsidiary — to be applied to future monthly payments “in respect of Aeroplan Miles,” Air Canada said.