Air Transport World

Trinity set to walk away from Air Canada.(Brief Article)

Air Canada's hopes of emerging from its bankruptcy reorganization this spring were dealt a huge setback in early April when Trinity Time Investments said it would not extend beyond the April 30 expiration date its agreement to invest C$650 million ($495 million) in the carrier owing to refusal by AC's unions to discuss changes to their pension agreements as part of the financial restructuring.

Trinity, which is controlled by billionaire Hong Kong investor Victor Li, also claimed that AC's recent financial performance was somewhat weaker than it had expected and that the labor cost reductions and productivity improvements "promised" by AC's unions were not being achieved fully.

In a statement, the airline said it intends to "pursue alternatives" to Trinity and "remains focused on completing its restructuring and emerging successfully from CCAA protection as soon as possible. …

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