Air Canada, the largest airline in Canada and the world's 11th biggest, filed for bankruptcy protection yesterday as it succumbed to a heavy debt load and a deep slump in air travel.
The Montreal-based airline filed the request for bankruptcy protection under Canada's Companies' Creditors Arrangement Act in a Toronto court.
Similar to US Chapter 11 protection, the act allows the carrier to keep flying while it negotiates with creditors to restructure almost 13 billion Canadian dollars (€8.1 billion) of debt.
A Toronto court granted the airline protection from its creditors until May 1st.
Canada's flagship international carrier, Air Canada has about 40,000 employees and a fleet of 357 aircraft. It provides key links to communities across Canada and is the main carrier for scheduled service on international routes. - (Reuters)
