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Article: Canada: Air Canada raises $1B in bid to avoid CCAA.
- Article from:
- TendersInfo
- Article date:
- July 31, 2009
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Byline: kusumv03
Air Canada said yesterday it has managed to raise $1.02-billion in additional funds through a syndicate of lenders and other transactions, a key step in the airline's ongoing efforts to avoid a bankruptcy filing this year.
But questions remain around the long-term viability of the airline even with the funds as demand for air travel continues to fall, prices continue to decline in the face of intense competition and the company's cost structure remains at least 30% higher than its domestic rival, West- Jet Airlines Ltd.
The situation was made even more precarious as Air Canada said it had leveraged essentially all of its ...