It's a story we've heard all too often... and we'd hoped to hear the end of them. Air Canada revealed Monday just how tight its liquidity crunch has become. The nation's leading airline has asked Canadian regulators to grant it immediate relief from a requirement to fund employee pensions.

The Wall Street Journal reports Air Canada CEO Calin Rovinescu, a former investment banker who was placed in the job five weeks ago, faces some tough deadlines. The company lost a billion dollars Canadian in 2008, and losses have accelerated in 2009's first quarter. Eight union contracts expire this month and next, and workers have shown little interest in discussing concessions, including the suspension of company pension contributions.
 
One credit-card processor is threatening to require Air Canada to increase its minimum cash balance from 900-million to 1-point-3-billion dollars Canadian, more than the airline currently has on hand. Analysts say another 600-plus-million dollars in debts are due in the next 12 months.

In a recent interview, Rovinescu was very candid about his challenges. Quote - "The juggling act has started."

FMI: www.aircanada.com