MONTREAL (voa) – Air Canada has filed for bankruptcy protection, saying it is deep in debt in an airline industry struggling with terror and war-induced fears.
But the country’s largest carrier said Tuesday it would keep flying after securing at least $700-million in credit from the General Electric Company’s capital unit in Canada.
The Montreal-based company said it is negotiating with creditors to restructure more than $8-billion in debt.
Canadian Transport Minister David Collenette said Tuesday the government will provide a loan guarantee if necessary.
This comes after two financially troubled U.S. airlines took steps Monday to stay out of bankruptcy.
American Airlines secured $1.8-billion in savings to avoid filing for bankruptcy. U.S. Airways emerged from eight months of bankruptcy protection by cutting costs by one-point-nine-billion dollars.
In related news, the U.S. Department of Transportation approved a marketing alliance Tuesday involving three of the top five U.S. carriers.
Delta Air Lines, Northwest Airlines and Continental Airlines say they plan to sell tickets on each other’s flights and offer joint incentives to customers, all in the hope of generating added revenue for each company.
