NEW AIR CANADA WOULD JOIN ONEWORLD; STAR MEMBERS CONSIDER BID

   Air Canada, a founding member of the global Star Alliance of airlines,
would join the rival oneworld alliance under a plan proposed this week by investment firm Onex Corp. to merge Air Canada and Canadian Airlines International.
   That has roiled Star members, including United Airlines and Lufthansa
German Airlines, who reportedly are considering a bid for Air Canada to protect the carrier from joining oneworld, anchored by American Airlines and British Airways.
   Onex plans to merge Canadian Airlines and Air Canada into a new airline that would be owned by a holding company called AirCo, based in Montreal. According to the Onex plan, AMR Corp., parent company of American Airlines, would own nearly 15 percent of AirCo. The new airline would be called Air Canada.
   AMR currently owns a 33-percent equity stake and 25 percent of the
voting rights in Canadian Airlines. Air Canada has said that the Onex deal appears to pose no measurable benefits for its stockholders.