News
Air Canada concludes financing for 80 million US dollars

Dec. 24, 2008 Montreal – Air Canada announced that it has concluded a series of agreements for secured financings with General Electric Capital Corporation (GECC) and its affiliates, providing the airline with up to 195 million US dollars (approximately 238 million dollars).
    
Under the agreements, the amount of US 80 million US dollars(approximately 98 million dollars) was funded today as the first of two parts of a loan agreement which would provide Air Canada with 155 million US dollars (approximately 190 million dollars). The loan matures in 2014. The second part of the secured loan is expected to close and fund prior to the end of January 2009. Funding of the second part of the loan agreement, as well as retention of the funded first part, are subject to certain conditions, including conclusion of a sale and leaseback of one Boeing 777-300ER aircraft with GE Commercial Aviation Services (GECAS), a division of GECC.
    
This sale and lease back for a lease term of 12 years will, upon conclusion, provide Air Canada with at least 40 million US dollars (approximately 48 million dollars) of additional financing.
    
Full funding under all the agreements would provide Air Canada with financing of approximately 195 million US dollars (approximately 238 million dollars).
    
These agreements represent additional steps in the implementation of Air Canada's strategy of improving its short-term and longer-term liquidity through both traditional and non-traditional means.