Latest news from cbc.ca. There's more stuff there, but you can link to it from this post, or use "search":
cbc.ca
... Air Canada announced Wednesday afternoon that more than 50 per cent of Canadian's stock had been tendered ... Its deal with American Airlines parent company, AMR, was announced at the same time. It completely settles the U.S. company's interest in Canadian, and at a cost considerably lower than AMR had originally demanded Air Canada pay.
Under terms of the deal, Air Canada will pay between $55 and $60 million to purchase AMR's convertible preferred shares in Canadian Airlines.
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Under the deal, Air Canada and Canadian's reservation systems will be merged. Air Canada has agreed only to "consider" using AMR's Sabre reservation system, but it doesn't appear to be locked into choosing it.
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If Air Canada does not choose Sabre, AMR would receive up to $83 million from Air Canada to pay for some of Sabre's start-up costs. That brings the total cost to Air Canada of the AMR deal at no more than $143 million.
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The deal allows American Airlines, a subsidiary of AMR, to maintain codesharing with Canadian for 10 years. American Airlines will also maintain a non-exclusive frequent flyer relationship with Canadian Airlines.
... Air Canada says "should Canadian be fully absorbed into Air Canada within the ten year period, ... The only obstacle now standing in the way of Air Canada's takeover plan is federal government approval. |
