AIR CANADA PILOTS WILL FIGHT ONEX BID

AIR CANADA PILOTS WILL FIGHT ONEX BID

   Air Canada’s pilot union said they are opposed to Onex Corp.’s
unsolicited bid to buy Air Canada and merge it with weaker rival Canadian Airlines
International, which has lost money in nine out of the last 10 years.
   The Air Canada Pilots Association said it is concerned that the merger
will result in a new airline loaded with debt, lead to far more staff cuts
than estimated by Onex and surrender control over Canada’s airline industry to American
Airlines’ parent company AMR Corp.
   The pilots said it is "naive to believe" that AMR will not
"wield power
and influence over "the New Air Canada." The ACPA said that AMR is
financing nearly $750 million of the $1 billion it will cost to merge the
airlines.
   AMR, which owns a majority stake in Canadian Airlines, has denied
accusations that it wants to control a combined Canadian carrier.
   The pilots believe that AMR may already be using its voting power in
Canadian Airlines to block consideration of a proposal made to the airline by Air Canada.
"The American Airlines/Onex takeover bid has effectively shut down any meaningful
dialogue," the ACPA said.
   Onex and Air Canada’s management board will face off in court on Sept. 22 to
decide when Air Canada will hold a shareholder meeting to consider acquisition proposals.
Onex wants a meeting on Nov. 8. Air Canada has scheduled a meeting for Jan. 7.
   In the meantime, Air Canada’s pilots have retained financial advisors to
consider a possible buyout of Air Canada.