CANADIAN AIRLINES International is delaying the delivery of ten new aircraft which it had planned to acquire from Airbus Industrie by 1999.
The Calgary-based airline is negotiating with Airbus to reschedule delivery of the A320s, which would have required $394 million in cash or new financing over the next five years.
Canadian says that it decided to postpone delivery as a "prudent" measure at a time when employees and suppliers have made concessions to keep the airline afloat. The carrier was scheduled to take delivery of two aircraft this year, three in 1988 and five in 1999. Now, Canadian will not take delivery of any aircraft for at least two years.
The rescheduling is not expected to create a problem for the airline, because its fleet is relatively young and because the carrier's plan to return to profitability is based on its current fleet size.
Source: Flight International
