MONTREAL, June 29 /CNW Telbec/ - Groupe Aeroplan Inc. announced today
that Aeroplan Canada Inc. ("Aeroplan") and Air Canada have agreed to
immediately unwind the acceleration of payment terms in effect as a result of
an agreement entered into in November 2008. Under the agreement, Aeroplan had
temporarily accelerated the payment terms for air travel rewards purchased
from Air Canada. Air Canada remitted to Aeroplan approximately $40M to reverse
amounts remaining on this date, related to accelerated payments previously
disbursed. The effect of this arrangement would have reversed by the end of
the third quarter of 2009.
Concurrent with the repayment by Air Canada of all remaining amounts
previously accelerated, Aeroplan has agreed to make available to Air Canada,
on a secured basis, a revolving loan to replace the existing prepayment
arrangement. The loan is in an amount equal to the aggregate of the previous
60 days accumulated purchases by Aeroplan of reward seats from Air Canada (the
"Borrowing Entitlement"), up to a maximum of $100M. Subject to compliance with
applicable covenants, the loan will be available for monthly draw-downs
through to June 2010 and is secured by Air Canada's interest in Air Canada
Vacations. As long as any amount is outstanding under this loan, the Air
Canada Vacation shares will also secure all of Air Canada's obligations to
Aeroplan under the commercial participation services agreement. If the amount
outstanding on a draw-down date exceeds the Borrowing Entitlement, Aeroplan
will set off such amount against any obligations owing by Aeroplan to Air
Canada. Air Canada made an initial draw-down under the loan of $79M.
This announcement has no impact on the Aeroplan program or its members.
About Groupe Aeroplan Inc.
Groupe Aeroplan Inc. is a leading international loyalty management
corporation. Groupe Aeroplan owns Aeroplan, Canada's premier loyalty program
and Nectar, the United Kingdom's leading coalition loyalty program. In the
Gulf Region, Groupe Aeroplan owns 60 per cent of Rewards Management Middle
East, the operator of Air Miles programs in the United Arab Emirates, Qatar
and Bahrain. Groupe Aeroplan also operates Insight & Communication, a
customer-driven insight and data analytics business offering international
services to retailers and their suppliers.
For more information about Groupe Aeroplan, please visit www.
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