Air Canada has agreed a C$2.5 billion minority equity investment in Aeroplan from funds managed by Blackstone and La Caisse, alongside other Canadian institutional investors. The transaction values Aeroplan at C$10 billion and leaves Air Canada with 75% ownership and full operational control, while preserving the loyalty programme’s current member, partner and employee experience.
The investor group also includes PSP Investments and British Columbia Investment Management Corporation. Proceeds will first be used to repay Air Canada’s upcoming US$1.2 billion bond maturity, with most of the remaining funds directed towards accelerated share repurchases, including a planned substantial issuer bid of up to C$800 million.
Air Canada has framed the transaction as a balance-sheet strengthening move that reduces gross indebtedness without drawing down cash, while supporting its long-term aim of an investment-grade rating. Settlement is expected next week, making the deal an immediate financing milestone for the carrier and its loyalty programme.