Air Transport World

Game and set Air Canada.

American Airlines parent AMR Corp. will sell its 24% stake in Canadian Airlines to Air Canada for C$55-60 million under an agreement that will see Air Canada acquire its failing rival for C$92 million ($62 million) and operate it as a separate codesharing subsidiary. American's acquiescence in the deal comes with a catch: It will be permitted to maintain a codesharing and frequent-flier relationship with Canadian for 10 years, The agreement also allows Air Canada and its Star Alliance partners to codeshare with Canadian.

Should Canadian be absorbed fully into Air Canada during that period, "certain provisions" will allow American to maintain its marketing presence in Canada, the airlines said. …

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