Air Canada renegotiates aircraft leases with Knafaim-Arkia Holdings

Airline Industry Information, Sept 30, 2003

AIRLINE INDUSTRY INFORMATION-(C)1997-2003 M2 COMMUNICATIONS LTD

Air Canada has renegotiated contract terms for ten aircraft with Israeli aviation group Knafaim-Arkia Holdings.

Knafaim said in July 2003 that the airline was planning to return two of the 12 aircraft it leased from the company and renegotiate contract terms for the other ten aircraft. The two companies have now renegotiated the contract terms, which will expire on 31 December 2005 rather than varying dates from 2003 to 2006 under the original contract.

Air Canada is also entitled to gradually terminate the leases beforehand, starting in September 2004, reported Reuters.

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