A plan to rescue InterCanadian Airlines, grounded since 27 November, has collapsed. Its originator, a union-backed investment fund, has found that the regional carrier owes more money than first believed.
The Quebec Solidarity Fund says InterCanadian is a "financial disaster with debt of about C$45 million" ($31 million). It says that when it made a conditional takeover offer it believed the airline needed only C$10-15 million to get airborne (Flight International, 22 December, 1999-3 January).
InterCanadian has until 7 February to apply for bankruptcy protection, although the fund has told the airline's 900 employees to look for other jobs. Its 23 aircraft have been seized by court order.
Source: Flight International