Air Canada agrees to buy the Aeroplan loyalty program from Aimia Inc. (Photo by THE CANADIAN PRESS)

Air Canada signs definitive deal to buy Aeroplan program for $450 million

MONTREAL — Air Canada has signed a definitive agreement to buy the Aeroplan loyalty program from Aimia Inc. for $450 million in cash.

Under the deal, Air Canada will also assume $1.9 billion of Aeroplan miles liability. The definitive agreement follows an announcement in August of a tentative sale.

Air Canada says it has also signed agreements with TD Bank, CIBC and Visa that will see them continue to be part of the Aeroplan loyalty program.

Under its deal, TD will pay Air Canada $622 million plus an additional $308 million that will be applied to future purchases of loyalty points.

CIBC will pay $200 million to Air Canada, plus an additional $92 million that will be applied to future monthly payments for Aeroplan miles. Visa will also be making a payment to Air Canada.

The airline says it is still in talks with American Express, which also issues Aeroplan co-branded cards, to secure its continued participation.

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