Skip navigation

 Login or Register | Member Centre

News from Reuters

Aeroplan to convert to corporation, profit rises

09/05/08

TORONTO (Reuters) - Loyalty program operator Aeroplan Income Fund said on Friday it will reorganize from its three-year-old trust structure to be a dividend-paying public corporation.

Best known as Air Canada's frequent flier reward operator, Aeroplan said the change in structure would help it pursue attractive growth and acquisition opportunities, as well as open it up to foreign investors.

"The reorganization will be a major milestone in our evolution as the global leader in loyalty management," Rupert Duchesne, Aeroplan president and chief executive officer, said in a statement. He will continue as head of the restructured company.

As a corporation, Aeroplan said it expected to set its initial quarterly dividend at 12.5 Canadian cents per share. Monthly distributions for May and June, in the meantime under the current fund structure, would not be affected.

The fund expects the reorganization will be effective on or about June 25, 2008.

Separately, Aeroplan said it earned C$61.8 million ($61.18 million), or 31 Canadian cents a unit, in the quarter ended March 31, compared with C$50.1 million, or 25 Canadian cents a unit, a year ago.

($1=$1.01 Canadian)

(Reporting by Ka Yan Ng; editing by Renato Andrade)

© Reuters Limited. All Rights Reserved.
Reproduction or redistribution of Reuters content, including framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.


Elsewhere on this site

Back to top