Air Canada moved a step closer in its takeover of the Aeroplan after signing a definitive agreement to buy the loyalty program from Aimia Inc. earlier this week.

Air Canada agreed to pay $450 million in cash, and said it will also assume $1.9 billion of Aeroplan miles liability as part of the deal, which the airline expects to close in January. The carrier also secured new agreements with credit card partners Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Visa Canada Corp. to participate in its new loyalty program, pending the closing of the Aeroplan acquisition.

The definitive agreement with Aimia comes after an announcement in August of a tentative sale.

Air Canada  plans to launch its own rewards program in 2020, and has said that Aeroplan members’ points would be transitioned into the new program when it launches. However, the airline said it will release details on the new plan next year.

Here’s what Air Canada’s Aeroplan deal – and its agreements with CIBC, TD Bank and Visa – could mean for the five million members earning points for flying with Air Canada:

What would the Air Canada group’s takeover of Aeroplan mean for my points?

Air Canada and its partners said the proposed transaction would allow for “a smooth transition” of Aeroplan members' points to Air Canada's new loyalty program which launches in 2020. The group said the proposed Aeroplan takeover would safeguard members’ points and provide “convenience and value for millions of Canadians.” More details about the new rewards plan are expected to be released next year.

What happens to my Aeroplan points?

Nothing. Your Aeroplan balance remains intact, unless you choose to redeem points for flights or other rewards. What changes is how you'll earn points after June 2020 and, possibly, what you can buy with those points.

I've booked an Air Canada flight using Aeroplan points. What happens to my booking?

Members who have already planned trips and booked flights with their Aeroplan points will still be able to travel as planned.

Can I still use Aeroplan points to book Air Canada flights?

Members can use their Aeroplan points to book Air Canada and Star Alliance flights until June 30, 2020. After that, Aeroplan points will be transferred to the new Air Canada rewards program.

Does this change anything about my Aeroplan credit card?

TD, CIBC and American Express all offer cards connected to the Aeroplan program. TD, CIBC and Visa have signed new agreements with Air Canada to participate in its new loyalty program after 2020, which is conditional upon the closing of Air Canada’s acquisition of Aeroplan. The American Express Aeroplan contract expires in 2020.

TD will become the primary credit card issuer for Air Canada’s new loyalty program from when it launches in 2020 to 2030. Bharat Masrani, group president and CEO of TD Bank, said the new agreement would bring long-term stability, continuity and value for the bank’s Aeroplan members.

What happens to the Aeroplan points collected on my American Express credit card?

For now, your Aeroplan points remain intact. Air Canada said on Monday that it is still in negotiations with American Express to secure its participation in the new loyalty program after 2020.

- With files from The Canadian Press