Airline Looking For New Investor

Air Canada, mired in gallons of red ink, has gotten a tentative okie-dokie from its largest union to start looking for a new investor -- one who can pump a much-needed $250 million into the cash-strapped airline.

For David Ritchie, head of the Machinists local that serves Air Canada, said he's happy that the airline's search is a no-strings-attached affair. Unlike the last aborted courtship between Air Canada and financial suitor Victor Li. The Hong Kong investor's offer to rescue Air Canada from its money problems expired on Friday.

"I think that's extremely important to all of us in that process," Ritchie said of the new conditions in an interview with the Canadian Press. Under the deal from which Li walked away, the union's 11,500 members would have seen reductions in their pensions. Li's conglomerate said those reductions were crucial to Air Canada's financial survival.

For now, though, it seems the court-appointed bankruptcy monitor watching over Air Canada agrees with the union. The monitor recommends the full court go along with Air Canada's request.

"We're looking for a long-term solution. We're not looking for someone who's going to come in and make a quick buck," said Ritchie.

The airline had hoped to emerge from bankruptcy before the end of 2003. But the plan is still months behind schedule. Canadian Press reports the earliest Air Canada plans to exit bankruptcy proceedings would be September.

FMI: www.aircanada.ca/e-home.html