Air Canada Air Canada ,the diasaster government saved airline declares bankruptcy and during the proceess spins out their profitable aeroplan business that created substantial value for the shareholders of ACE, as its own entity.
The loyalty rewards programme Aeroplan was spun off Aeroplan was essentially a retailer: it collected revenue, allocated Aeroplan points to consumers, and provided goods and services to them when the points were redeemed. Becoming a standalone entity allowed Aeroplan’s new executive team to highlight the uniqueness of its business model to investors. Also, because Aeroplan was no longer part of ACE, its profits were insulated from the demands of the unions.
Air Canada makes this announcement - share price and valuation get crushed - makes an offer to acquire them back.