Canadian Airlines determined to fly on...
Today's 'Financial Post' reports that:
"'Canadian Airlines will operate normally even if placed under bankruptcy protection to restructure its debt', says Kevin Benson, president and CEO.
"'The act of putting CAI under the CCAA does not affect our customers or employees. The airline will operate normally throughout any restructuring process', Mr. Benson said in a message to employees.
"The comments came after a warning to Canadian's creditors this week by Robert Milton, Air Canada's CEO, that Canadian may reorganize its finances under the Companies Creditors Arrangement Act."
Remember that Continental used the same device in the U.S. and kept flying as normal, and honouring its FF commitments, etc. (AC's already guaranteed this, so no need to panic.) So no real need to panic if this does happen. However, the newsstory (if we can believe anything rumoured by the media) continues with more positive indicators towards the end:
"'...I don't think any of these major creditors, if they are on side, would be uneasy. They want to see the airline succeed and they know a restructuring plan is the only way to make it succeed...'
"An official with another creditor expects the restructurng will be similar to the last two at Canadian. In those cases, fully secured and partially secured creditors accepted a three month moratorium while aircraft operating lessors missed ony a month and a half of payments."
Your seats will be safe any way things play out, not to mention your FF points.