AIR CANADA REPORTS PROFIT TO SHAREHOLDERS
In another move to hinder Onex Corp.’s unsolicited bid to buy the
airline, Air Canada reported that net earnings rose 23 percent to $81
million in the two months ending August 31.
Operating income increased 11 percent to $176 million and revenue grew 4
percent to $1.2 billion in July and August.
"We are reporting the corporation’s financial results for the two months
ending Aug. 31 in order to provide our shareholders with the timely
information they will need to make well-informed decisions on any proposal
that comes forward regarding industry restructuring," said Robert A.
Milton, Air Canada’s president and chief executive officer.
"We are confident our shareholders will benefit from this added
knowledge that the corporation’s performance continues to improve
significantly, year over year, in key areas including maintenance and
distribution costs," Milton said.
Air Canada’s management board is fighting a bid to shareholders made by
Onex to buy and merge Air Canada with weaker rival Canadian Airlines
International. Onex has made the bid with the backing of American Airlines’
parent company AMR Corp.
Onex and Air Canada’s board will face off in court Wednesday to
determine when Air Canada’s shareholders will consider the Onex proposal.
Onex wants the court to order a meeting on Nov. 8. Air Canada has scheduled
a meeting for Jan. 7.
For the eight month period ended Aug. 31, Air Canada said earnings rose
20 percent to $157 million. Operating income improved by 11 percent to $344