Air Canada sells stake in Aeroplan to Onex

Airline Industry Information, Jan 28, 2003

AIRLINE INDUSTRY INFORMATION-(C)1997-2003 M2 COMMUNICATIONS LTD

Air Canada has reportedly agreed to sell 35% of its Aeroplan frequent flyer programme to diversified Canadian conglomerate, Onex Corp.

Under the agreement, Onex will pay the airline about CAD245m for the 35% stake in the frequent flyer programme. Air Canada will retain the remaining 65%. As part of the transaction, Air Canada will hold a CAD200m note payable by Aeroplan and Onex will hold a CAD52.5m note from Aeroplan.

The deal is expected to be finalised at the end of the first quarter of 2003, reported Reuters.

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