Wednesday, July 8, 2009

Air Canada to Bankruptcy Court?

There are reports circulating that Air Canada may file for bankruptcy protection if three of its five unions are unwilling to ratify agreements which include wage freezes and a 21 month moratorium on payments to the airline's pension plans.  See Chris Sorensen, Analyst Predicts Full-Year Loss for Air Canada, Toronto Star (July 8, 2009) (available here); Francois Shalom, Air Canada in Disarray with Union, Montreal Gazette (July 6, 2009) (available here).  If Canada's largest airline does file for protection, it would be the second time it has had to do so in six years.  It would also give Air Canada the dubious distinction of being the first North American legacy carrier to seek protection in the courts since the global economic crisis hit.

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