The Guvnor
4th Oct 2001, 20:02
From today's Toronto Star. Subsequent news is that Onex have said "no way, Jose" to them taking over AC. With government only providing C$100m out of the C$3bn requested by AC, it looks like the end could be nigh for them as well.
Source Toronto Star
Business Report
October 4th 2001
MONTREAL (CP) — Transport Minister David Collenette is preparing the groundwork for a private sector solution to the woes of financially-troubled Air Canada, Montreal La Presse reported today.
Liberal MP Dennis Mills, who was unavailable for comment, has informally approached Onex Corp. owner Gerry Schwartz about investing in the airline and Collenette is said to be ready to increase the percentage of individual stakes in the carrier from its limit of 15 per cent, the newspaper said in a
report from Ottawa.
Toronto-based Onex, which made an unsuccessful hostile offer for Air Canada in 1999, said Tuesday it's not interested in taking another run at the airline.
Two years ago, Onex wanted to merge Air Canada and Canadian Airlines into one national carrier but the plan fell through when directors of Air Canada contested the bid before the Federal Court of Canada.
Citing unidentified Liberal sources, La Presse said it had been told the government would do everything it could to get the private sector to provide a permanent solution to Air Canada's woes.
They also said the government would not necessarily favour Onex.
"All options are on the table," said one source.
Collenette announced Tuesday $160 million in short-term aid to the airline industry, $100 million of which would go to Air Canada.
Source Toronto Star
Business Report
October 4th 2001
MONTREAL (CP) — Transport Minister David Collenette is preparing the groundwork for a private sector solution to the woes of financially-troubled Air Canada, Montreal La Presse reported today.
Liberal MP Dennis Mills, who was unavailable for comment, has informally approached Onex Corp. owner Gerry Schwartz about investing in the airline and Collenette is said to be ready to increase the percentage of individual stakes in the carrier from its limit of 15 per cent, the newspaper said in a
report from Ottawa.
Toronto-based Onex, which made an unsuccessful hostile offer for Air Canada in 1999, said Tuesday it's not interested in taking another run at the airline.
Two years ago, Onex wanted to merge Air Canada and Canadian Airlines into one national carrier but the plan fell through when directors of Air Canada contested the bid before the Federal Court of Canada.
Citing unidentified Liberal sources, La Presse said it had been told the government would do everything it could to get the private sector to provide a permanent solution to Air Canada's woes.
They also said the government would not necessarily favour Onex.
"All options are on the table," said one source.
Collenette announced Tuesday $160 million in short-term aid to the airline industry, $100 million of which would go to Air Canada.