Blackstone Nears $2 Billion Stake in Air Canada’s Points Program

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Or sign-in if you have an account.(Bloomberg) — Blackstone Inc. is nearing a deal to pick up a minority stake in Aeroplan, Air Canada’s travel loyalty program, for about $2 billion, according to people familiar with the matter. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe deal could be announced as early as this week, said the people, who asked not to be identified discussing confidential information. Some Canadian funds are set to invest in Aeroplan alongside Blackstone at the same time, the people said. Air Canada is seeking to raise money in the midst of a multibillion-dollar program to buy new aircraft and renovate the interiors of existing ones as it plots new routes. The airline operates more than 300 planes and expects to reach nearly 400 by 2030.Like its peers, the carrier has been hard hit by the surge in jet fuel prices due to the Iran war. In recent months, it has added flights to Europe and Asia to compensate for the drop in flying to the US, due to geopolitical tensions. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againStill, the firm is expected to report an 85% drop in adjusted net profit from the prior year when it releases earnings on Wednesday, according to Bloomberg Intelligence estimates.Blackstone and Air Canada declined to comment on the deal.Aeroplan has more than 10 million members worldwide who can earn or redeem points on Air Canada’s airline partner network of more than 50 airlines and through its hotel and car rental partners. Blackstone is providing the equity investment from its credit and insurance business, the people said. The $1.3 trillion asset manager has referred to these types of deals as corporate solutions, and they are “a really new avenue,” Blackstone Chief Financial Officer Michael Chae said in a call with analysts following second-quarter results last month. “There’s a substantial opportunity for investment-grade rated corporates where we’ve become a trusted solutions provider,” Chae said. In July, Blackstone’s credit and insurance business led a $5.34 billion investment in Williams Cos. power plants alongside Apollo Global Management Inc. and KKR & Co. Inc. It also backed Rogers Communications Inc.’s wireless network infrastructure with a C$7 billion ($5.02 billion) deal last year. In addition, Blackstone’s credit and insurance business provided Swedish fund manager EQT AB with $3.5 billion of cash in exchange for a non-controlling common equity interest in a new joint venture for infrastructure assets. —With assistance from Siddharth Philip.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.