Air Canada, one of Canada’s largest airlines, hopes to set up its own life insurance arm.

In an attempt to enter the annuities market and protect themselves from pension payouts, Air Canada is planning on entering life insurance.

Furthermore, the Montreal-headquartered firm plans to purchase the annuities over several years, starting in 2019.

The airline is currently paying out around CA$725m ($556m) in annual pension payouts. Moreover, that number is due to rise to around CA$900 million in the next 10 years. The plans cover around 53,000 employees. Half of these employees are retired.

As a result, Air Canada is currently seeking approval from the finance minister.

This is not the first airline to look into this move. In February 2017, Australian airline Qantas teamed up with TAL to offer life insurance.

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