CANADA AIR EXTENDS OFFER FOR CANADIAN AIR STOCK PURCHASE

   Air Canada said late Tuesday it has extended its offer to purchase all outstanding shares of Canadian Airlines Inc. to Dec. 23. The original
deadline was Tuesday.
   Montreal-based Air Canada said it extended the deadline to provide
shareholders with additional time, and for additional time to negotiate
with AMR Corp., which owns a 25-percent stake in Canadian Air.
   Air Canada’s bid to buy Canadian’s shares, estimated at C$92 million, would allow the airline to dominate the Canadian market. Air Canada plans to buy the money-losing airline, trim back its staff, fleet and routes, and operate it as a subsidiary. Canadian would also be removed from the oneworld alliance, which includes American and British Airways.
   AMR, which joined with Onex Corp. in an unsuccessful hostile takeover bid to buy Air Canada, has been demanding C$1 billion in compensation if Canadian is pulled from oneworld.
   Canada Air said it also extended the deadline to "seek to obtain the
requisite regulatory consents as well as clarification respecting the terms of any new or proposed legislation or policy that would be applicable" to guidelines said by Canada’s Minister of Transport.