Members of the oneworld alliance are mulling over a temporary bailout for Canadian Airlines International. The struggling airline is looking for a cash injection of C$300-500 million ($200-$340 million) to put its financial house in order, and fight off Air Canada's takeover bid.
The oneworld proposal was mooted at a 22 November meeting in Toronto, despite the fact that most industry analysts believe throwing more money at Canadian is not a viable solution.
The alternative would be for Canadian to return to its status of 15 years ago, when it thrived by serving niche markets and not competing head-to-head with flag carrier Air Canada. Oneworld members also hope that legislation being discussed in Ottawa will allow an increase in foreign ownership from a maximum 25%.
Source: Flight International