Air Canada says still confident in lender talks

Wed Jul 8, 2009 10:03pm BST
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* Sees "certain level of support" from lenders

* Says pension talks with federal government productive

* Gave unions clarifications on tentative contract

* Unveils new aircraft paint scheme to promote Olympics

By Allan Dowd

RICHMOND, British Columbia, July 8 (Reuters) - Air Canada (ACa.TO: Quote, Profile, Research) is finding some support from lenders as it struggles to solve its financial Rubik's Cube, the cash-strapped airline's chief executive said on Wednesday.

Tight credit markets have complicated discussions with the lenders that Canada's largest airline has approached for short-term financing, Calin Rovinescu told reporters.

"There is a certain level of support. We have some very specific targets of what we need to raise as far as capital. We continue to be confident, but the discussions are ongoing," he said.

The airline was also able to offer some "clarifications" in weekend talks with its largest union, which recently voted down a tentative contract deal, but is scheduled to hold another vote next week, Rovinescu said.  Continued...

 

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