US-based private equity company Texas Pacific Group has confirmed its interest in troubled Air Canada, although it could be thwarted by Canada's foreign ownership restrictions.
Texas Pacific is the largest shareholder in America West Airlines and has been exploring a possible role in the privatisation of Aer Lingus. It admits "a potential interest" in the Canadian flag carrier, which is in Canada's equivalent of Chapter 11, but says discussion of buying a stake in the airline is "very preliminary" and notes that a decision on whether to actively pursue Air Canada is at least several weeks away.
Air Canada declines to comment on any potential buyers, but says: "There's clearly interest that's been expressed."
Canadian law prohibits any foreign entity from having more than 25% ownership of a Canadian airline. Canadian transport minister David Collenette, in a recent testimony before the Canadian House of Commons, said there was no consideration of lifting the ownership restriction.
Texas Pacific says it is "aware of the regulations", but declines further comment. Air Canada has long favoured raising the foreign ownership limit.
The carrier earlier this month filed for protection under Canada's Companies Creditors Arrangement Act. The airline's creditors have until 22 April to provide their response to Air Canada's filing; the airline has up to six months to file its reorganisation plan.
Source: Flight International
