Air Canada, Onex scrap deal for sale of Aeroplan stake Last Updated Tue, 01 Apr 2003 16:30:45 TORONTO - A plan for Onex Corp. to buy 35 per cent of the Aeroplan frequent flyer rewards program for $245 million from Air Canada has been ripped up in the wake of the airline filing for bankruptcy protection. However, the two companies said they have signed a letter of intent so Onex will get exclusive rights to negotiate a new deal. "Onex and Air Canada remain committed to completing the proposed Aeroplan transaction and intend to work expeditiously to finalize an agreement," the companies said. "Under the terms of the agreement to be entered into by the parties, Onex' investment in Aeroplan would close on the date on which Air Canada's CCAA plan is implemented following creditor and court approval," they said. The companies said the exclusive negotiating right has been approved by a court in Air Canada's initial application for bankruptcy protection. Calgary-based airline analyst Rick Erickson called the Aeroplan rewards program one of the most valuable parts of Air Canada. With the airline's filing for bankruptcy protection, Erickson said the company could try to scrap the Onex deal and keep Aeroplan, but he noted that Air Canada may need the money from the sale so badly that they would go ahead with the deal. As for Aeroplan members, Erickson doesn't think they will see any effects from Air Canada's filing for bankruptcy protection. "I don't think that any of the Aeroplan frequent flyer point holders are going to take any kind of a haircut," Erickson said on CBC Newsworld. "They're too valuable to the airline as customers," he said. Written by CBC News Online staff *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week:http://www.ttsailing.org/ TnT Webdirectory: http://search.co.tt *********************************************************