Air Transport World

Air Canada.(Canada)

AC's hopes of emerging from bankruptcy this spring were dashed when Trinity Time Investments declined to proceed with a C$650 million equity infusion in the struggling carrier, citing union refusals to discuss pension plan changes primarily but also deteriorating industry fundamentals and AC's failure to achieve fully the level of labor cost savings in the investment agreement announced late last year.

The setback was described by the airline as only temporary and expectations now are for emergence by late summer with the financial support of GE Capital Aviation Services and Deutsche Bank. Under a new agreement with DB, AC will be seeking only C$250 million in fresh equity, a more manageable amount. …

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