Canada 3000 says it could run out of cash by year-end unless it gets loan guarantees from the Canadian Government. Canada 3000, the country's second-largest carrier, adds it must cut costs by 25%. But even that may not save the carrier without aid from Ottawa.
The government has already pledged C$160 million ($102 million), but Canada 3000 chairman John Leckey says it is not enough. He says Canada's airlines need similar loan guarantees to those offered to US carriers by Washington. Transport minister David Collenette says a decision will be made soon.
WestJet of Calgary opposes any further assistance. One Toronto airline analyst says Canada 3000 was in trouble before 11 September because of excess capacity following the take-over of Royal Airlines and CanJet.
Meanwhile, Air Canada has laid off 400 managers as part of 9,000 job cuts announced over the last two months. Analysts say it also could run out of cash by year end if bookings don't improve.
Source: Flight International
