AIR CANADA IS selling its stake in Continental Airlines, for a huge profit, saying that it no longer needs its investment in the carrier now that the US-Canada open-skies agreement is in place.
The Canadian airline purchased an 18% stake in Continental in April 1993 for $55 million, as part of the US carrier's rescue from bankruptcy. Nearly half the shares will be sold in May, netting Air Canada around $108 million, with the remainder to go early in 1997 if the market remains strong.
Air Canada chairman Hollis Harris says that the cash will be used to reduce debt and increase ownership of its mainly leased fleet. Texas-based Air Partners, which purchased Continental shares, as part of the same rescue plan, intends to sell 4.3 million shares, but has not announced a date.
Source: Flight International
