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 HomeFinanceTransportationAirlinesAir Canada reportedly nearing deal to sell minority Aeroplan stake to BlackstoneCould be announced this week as carrier prepares to report earnings on WednesdayAuthor of the article:Last updated 0 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.An Air Canada plane prepares for takeoff at Vancouver International Airport. Photo by NICK PROCAYLO /PostmediaBlackstone Inc. is nearing a deal to pick up a minority stake in Aeroplan, Air Canada’s travel loyalty program, for about US$2 billion, according to people familiar with the matter.Subscribe 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 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.Create 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.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 AccountorThe deal could be announced as early as this week, said the people, who asked not to be identified discussing confidential information. Some Canadian funds are set to invest in Aeroplan alongside Blackstone at the same time, the people said.Like its peers, Air Canada has been hard hit by the surge in jet-fuel prices due to the Iran war. In recent months, it has added flights to Europe and Asia to compensate for the drop in flying to the United States, due to geopolitical tensions.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.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 Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againStill, the firm is expected to report an 85 per cent drop in adjusted net profit from the prior year when it releases earnings on Wednesday, according to Bloomberg Intelligence estimates.The move echoes similar fundraising efforts during the pandemic. When travel came to a halt, airlines turned to every financing source they could find — even their previously untouched frequent-flier programs, considered crown jewels of their businesses.United Airlines Holdings Inc., Delta Air Lines Inc. and American Airlines Group Inc. raised more than US$25 billion through debt deals backed by their traveller loyalty programs.The current stake sale to Blackstone would mark the second time in a little more than 20 years that Air Canada brought outside investors into Aeroplan, which is one of the best-known loyalty programs in its home country. The first occurred as part of a broader restructuring of the airline after it went into bankruptcy protection in 2003. Aeroplan was listed in 2005 as a separate public company, which later added other loyalty businesses and was renamed Aimia Inc.The relationship between Aimia and Air Canada eventually soured, and investors were stunned in 2017 when Air Canada announced it wouldn’t renew the contract and would start its own competing loyalty program. Aimia shares plunged 63 per cent in a single day. Facing the loss of its most valuable asset, the company agreed the following year to sell Aeroplan back to Air Canada for $450 million ($323 million) in cash, plus the assumption of certain liabilities.Credit card issuers such as American Express Co. and Toronto-Dominion Bank pay Aeroplan for the right to offer its loyalty points to customers, who exchange them for plane tickets or other perks. Both institutions promote Aeroplan-branded cards to lure higher-spending consumers.Aeroplan has more than 10 million members worldwide who can earn or redeem points on Air Canada’s airline partner network of more than 50 airlines and through its hotel and car rental partners.Blackstone is providing the equity investment from its credit and insurance business, the people said. The US$1.3 trillion asset manager has referred to these types of deals as corporate solutions, and they are “a really new avenue,” Blackstone chief financial officer Michael Chae said in a call with analysts following second-quarter results last month.“There’s a substantial opportunity for investment-grade rated corporates where we’ve become a trusted solutions provider,” Chae said.In July, Blackstone’s credit and insurance business led a US$5.34 billion investment in Williams Cos. power plants alongside Apollo Global Management Inc. and KKR & Co. Inc. It also backed Rogers Communications Inc.’s wireless network infrastructure with a $7 billion deal last year.In addition, Blackstone’s credit and insurance business provided EQT Corp. with US$3.5 billion of cash in exchange for a non-controlling common equity interest in a new joint venture for infrastructure assets.—With assistance from Siddharth Philip. Join the Conversation This 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.