Blackstone Strikes $1.8 Billion Deal for Air Canada Loyalty Unit

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessBlackstone Strikes $1.8 Billion Deal for Air Canada Loyalty UnitBlackstone Inc. and a group of Canadian pension funds are buying a 25% stake in Air Canada’s Aeroplan loyalty program for C$2.5 billion ($1.8 billion).Author of the article:Thomas Seal and Stephanie Hughes You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Blackstone Inc. and a group of Canadian pension funds are buying a 25% stake in Air Canada’s Aeroplan loyalty program for C$2.5 billion ($1.8 billion).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 AccountOther investors in the group include three large Canadian asset managers — the Caisse de Depot et Placement du Quebec, PSP Investments and British Columbia Investment Management Corp., the airline announced Tuesday.The announcement confirmed an earlier Bloomberg News report. The deal puts a value of C$10 billion on the Aeroplan business, about C$2.4 billion more than Air Canada’s stock market capitalization. Shares of Air Canada rose about 6% on Tuesday to their highest level since 2021 after the story was published. Analysts said a private equity transaction involving Aeroplan would highlight the value of the business. 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 againCredit card issuers such as American Express Co., Toronto-Dominion Bank and Canadian Imperial Bank of Commerce pay Aeroplan for the right to offer its loyalty points to customers, who exchange them for plane tickets or other perks. Aeroplan has more than 10 million members worldwide who can redeem points on Air Canada or through its partner network of airlines and its hotel and car rental affiliates. Canada’s biggest airline said it will use the money to meet an upcoming $1.2 billion bond maturity, as well as for stock buybacks. Air Canada will retain control of Aeroplan and will have the right to repurchase the 25% stake between the fifth and eighth anniversaries of the deal’s closing, “as well as upon the occurrence of specified events,” the airline said. (Updates with additional context, starting in the third paragraph.)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.