Air Canada eyes EETC

This story is sourced from

Air Canada is rumoured to be preparing a capital markets deal to finance new and used aircraft, according to banking sources.

The enhanced equipment trust certificates (EETC), which could be launched in the first quarter of 2013, would make the first time a non-US based carrier taps into the US capital markets.

One banking source says Air Canada plans to finance new and used Boeing aircraft in the transaction.

Air Canada confirmed to Flightglobal that it is taking two new Boeing 777-300ER aircraft next year. Both aircraft will be introduced to the fleet in June and August.

"All sources of financed are considered," says the carrier.

Air Canada may wait until Canada ratifies the Cape Town treaty, which is scheduled to be completed soon, according to the banking source.

The Canadian carrier recently welcomed proposed amendments tabled by the federal government related to Canada's ratification of the Cape Town Convention and Protocol.

"With ratification, Canada would join the growing ranks of countries benefiting from this important international agreement that will provide Canada's airlines with access to more competitive aircraft financing and leasing terms on international finance markets, for the benefit of Canada's airlines and all stakeholders," said Air Canada's executive vice president and chief financial officer Michael Rousseau.