Air Canada sold a 25% stake in its Aeroplan loyalty program. The transaction is valued at C$2.5 billion (US$1.8 billion). A consortium led by Blackstone and Caisse de dépôt et placement du Québec (CDPQ) acquired the interest. The group includes PSP Investments and British Columbia Investment Management Corporation. The deal values the Aeroplan program at C$10 billion.
Air Canada retains a 75% controlling interest. The airline will continue to manage all operations and strategy. Air Canada holds an option to buy back the stake between the fifth and eighth anniversaries of the closing.
The company will use the proceeds to repay a US$1.2 billion bond maturity. Remaining funds will accelerate a share repurchase program. This transaction supports Air Canada’s strategy to achieve an investment-grade credit rating.