Air Canada, unions strike deal, saving bailout

0 Comments | AFP, May, 2004

TORONTO (AFP) — Air Canada and a holdout union struck a last-ditch deal on a vast cost-cutting package, which could save an 850 million dollar (612 million US) bailout for the insolvent carrier.

In dramatic face-to-face talks in a Toronto hotel, Air Canada CEO Robert Milton and Canadian Auto Workers union boss Buzz Hargrove pulled the airline back from the brink of possible liquidation.

"Yes we did reach the target," CAW official John Amato told AFP.

Air Canada spokeswoman Isabelle Arthur declined to give further details of the deal, but said the airline was preparing a statement.

Cost cuts of 200 million dollars (144 million US) were demanded by rescue partner Deutsche Bank, which is underwriting a rights issue to refinance the airline, as it...