Air Canada's $2.5B Aeroplan Deal and the Credit Crisis Shadow

Air Canada announced a $2.5 billion minority equity investment in its Aeroplan loyalty program, led by Blackstone and La Caisse, valuing the program at $10 billion. The deal, which includes PSP Investments and British Columbia Investment Management Corporation, will see Air Canada maintain full operational control while using proceeds to repay a US$1.2 billion bond maturity and accelerate $800 million in share repurchases.

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