Air Transport World

Paved with good intentions.(Brief Article)(Statistical Data Included)

The Canadian government's effort to rescue Canadian Airlines Corp. by pushing Air Canada into a state-sanctioned takeover or marketing alliance has turned into a global hostile takeover battle as the oneworld and Star alliances jockey to protect their networks.

Following a 90-day suspension of the Competition Act at the request of Canadian and brief, unsuccessful talks between the airlines, Onex Corp., a Canadian conglomerate controlled by leveraged buyout specialist Gerald Schwartz, sealed an agreement on Aug. 24 with American Airlines and Canadian under which Onex would buy Canadian and merge it into Air Canada, which the Onex/AA team also proposes to acquire.

Value of the deal was put at C$1. …

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