July 25 (Reuters) - Air Canada AC.TO, two Canadian banks and Visa Inc (NYSE:V) offered on Wednesday to buy back the Canadian airline's previous Aeroplan frequent flyer program from Aimia Inc AIM.TO for C$2.25 billion ($1.71 billion).
Air Canada, Canada's largest airline, spun off Aeroplan in 2002 to data analytics firm Aimia, and earlier this year said it would launch its own loyalty program.
Air Canada, TD Bank TD.TO, Canadian Imperial Bank of Commerce CM.TO and Visa Canada offered Aimia shareholders $3.64 per share for Aeroplan, a premium of 45.6 percent to Aimia stock's Tuesday closing price, Air Canada said in a statement.
Loyalty programs such as Aeroplan are expected to help Canadian airlines expand their revenue streams amid a cut-throat battle for market share.
Aimia has until Aug. 2 to respond to the proposal, Air Canada said. ($1 = 1.3125 Canadian dollars)