Air Canada Sold Aeroplan, Bought It Back, and Has Now Sold a Quarter of It Again

Air Canada is selling a 25% stake in its loyalty program to an investor group led by Blackstone. The C$2.5 billion (US$1.8bn) deal sees Air Canada keep the remaining 75% and maintain full operational control. The group also includes Quebec-based pension fund La Caisse, PSP Investments, and the British Columbia Investment Management Corporation. The transaction is due to settle on August 17. Air Canada says part of the proceeds will go toward repaying a US$1.2 billion bond maturity. The C$10 billion (US$7.2bn) valuation sits well above the airline that owns the program, with Air Canada's own market capitalization hovering between C$5.5–7.5 billion (US$3.9-5.4bn) this year. On paper, this leaves its core flying operation with almost nothing attached to it once loyalty is stripped out. However, the comparison flatters Aeroplan: Air Canada's market cap reflects equity after debt, while the C$10 billion figure is the implied valuation of the loyalty progr