Bloomberg reports that Air Canada is nearing a deal to sell a minority stake in its Aeroplan loyalty program to Blackstone for around $2 billion. Some Canadian funds are set to invest in Aeroplan at the same time, with an announcement possible in the coming days. The airline plans to use the proceeds to buy new aircraft and to invest in the interiors of existing planes. Air Canada faces financial pressure from increased fuel costs across the industry. Precedent exists for such moves. During the pandemic the big three carriers in the United States raised more than $25 billion through debt deals that used loyalty programs as collateral. Air Canada entered bankruptcy protection in 2003. In 2005 its loyalty program was listed as a separate company later renamed Aimia. In 2017 Air Canada bought Aeroplan back from Aimia for $450 million CAD plus assumption of certain liabilities. Airlines have long used loyalty programs to raise capital.
