Air Canada agrees to sell 35% of Aeroplan to Onex for more than $245M Canadian Press Monday, January 27, 2003 MONTREAL (CP) - Gerry Schwartz's Onex Corp., whose bid to acquire Air Canada and Canadian Airlines failed three years ago, has agreed to pay more than $245 million for a 35 per cent stake in Aeroplan, Air Canada's travel "loyalty" program. "Under the terms of the agreement, proceeds to Air Canada could increase from $245 million to $350 million if the full earn-out amounts are achieved," the companies said in a joint release. "Such value increase would be payable in cash or achieved through a dilution of Onex's interest, after approximately two years." Onex CEO Schwartz called the Aeroplan subsidiary "a gem within Air Canada." 'We are pleased to have the opportunity to work with the airline to build Aeroplan into a global leader in the growing loyalty industry and to achieve the kind of success, for all stakeholders, that we have experienced with Sky Chefs and Celestica," Schwartz said n a release. Onex (TSX:OCX), a conglomerate, controls the Celestica electronics company and sold Sky Chefs, the airline food company, to Germany's Lufthansa a couple of years ago. Selling a stake in Aeroplan "is a milestone in Air Canada's strategy of illuminating the value of its core assets through spinoffs and positions us favourably as we continue to seek other liquidity enhancing opportunities," said Calin Rovinescu, an Air Canada executive vice-president and chairman of Aeroplan. Begun in 1984, Aeroplan has over six million members and is a significant income generator for Air Canada (TSX:AC). In 2002, the plan generated revenue in excess of $600 million. Aeroplan has more than 90 partnerships with airline, hotel, car rental, financial, telecommunication, retail, services and entertainment partners. It also has a long-standing business relationship with CIBC (TSX:CM) through the Aerogold Visa card and with Diners Club Canada's Aeroplan Miles. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@escape.ca Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: www.pichemas.com TnT Webdirectory: http://search.co.tt *********************************************************