| All News |
| If you want to see all news from the last 100 days in order by date,
click here. |
|
| Search News |
| Enter any query and search the aviation news database |
|
|
 |
|
 |
|
International
Aviation News |
|
 |
|
 |
|
|
|
|
| |
Loan agreement replaces November 2008 prepayment arrangement for air travel rew
|
... Subject to the terms of the agreement, amounts are available for drawdown until June 30, 2010 and are equal to the aggregate of the previous 60 days accumulated purchases of reward seats by Aeroplan from Air Canada, up to a maximum of $100 million. Concurrently with the loan, Air Canada remitted to Aeroplan approximately CAD $40 million to reverse amounts remaining on accelerated payments previously disbursed to Air Canada under the November 2008 prepayment agreement with Aeroplan. The effect of this arrangement would have reversed by the end of the third quarter of 2009.
The loan is secured by Air Canada´s interest in Air Canada Vacations (ACV). As long as any amount is outstanding under this loan, Air Canada´s interest in ACV will also secure Air Canada´s obligations to Aeroplan under the commercial participation services agreement. ACV may continue to pay cash dividends to Air Canada and the airline is entitled to prepay any amount of the loan, at any time, without penalty.
Under the terms of the tentative pension funding agreements reached with its Canadian based unions this month, Air Canada is required to raise at least $600 million as a condition precedent for the pension funding arrangements. If such liquidity becomes available, Air Canada would terminate its loan agreement with Aeroplan and use its interest in ACV as security for this other facility.
Air Canada has made an initial draw-down under the loan of $79M.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
Air Canada´s public communications may include written or oral forward-looking statements within the meaning of applicable securities laws. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Any forecasts or forward-looking predictions or statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including without limitation, industry, market, credit and economic conditions, the ability to reduce operating costs and secure financing, pension issues, energy prices, currency exchange and interest rates, employee and labour relations, competition, war, terrorist acts, epidemic diseases, insurance issues and costs, changes in demand due to the seasonal nature of the business, supply issues, changes in laws, regulatory developments or proceedings, pending and future litigation and actions by third parties as well as the factors identified throughout Air Canada´s public disclosure file available at www.sedar.com. The forward-looking statements contained in this news release represent Air Canada´s expectations as of the date of this news release and are subject to change after such date. However, Air Canada disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations. |
| |
| News material on the Site is copyright and belongs
to the Company or to its third party news provider, and all
rights are reserved. Any User who accesses such material may
do so only for its own personal use, and the use of such material
is at the sole risk of the User. Redistribution or other commercial
exploitation of such news material is expressly prohibited.
Where such news material is provided by a third party, each
User agrees to observe and be bound by the specific terms of
use applying to such news material. We do not represent or endorse
the accuracy or reliability of any of the info contained in
any news or external websites referred to in the news. |
|
|
|
|
|
|
|
