Canadian Airlines Continues Fleet Renewal Strategy.CALGARY, Alberta--(BUSINESS WIRE)--April 23, 1999-- Canadian Airlines Canadian Airlines International Ltd. was, from 1987 until 2001, Canada's second largest airline after Air Canada, carrying more than 11.9 million passengers to over 160 destinations in 17 countries on five continents at its height in 1996. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CA.) (VSE See DOS/VSE. VSE - Virtual Storage Extended :CA.) (Alberta Stock Exchange Alberta Stock Exchange See Canadian Venture Exchange (CDNX). :CA.) Canadian Airlines today closed the sale of two McDonnell Douglas DC 10-30ER aircraft to Pegasus Aviation, Inc. of San Francisco, CA. This transaction is part of Canadian Airlines' ongoing strategy of renewing its widebody fleet with younger, more efficient aircraft. As previously announced, these DC10-30 aircraft are being replaced by two leased Boeing 767-300ER aircraft that joined Canadian Airlines' fleet earlier this year. In conjunction with the close of this transaction, Canadian Airlines prepaid approximately C$19 million of non-interest bearing convertible notes that were issued as part of its 1994 financial restructuring. Cash proceeds from the sale in excess of this prepayment amount will be used for general corporate purposes. These notes were collateralized by the DC10-30ER aircraft that were sold, as were C$24 million of notes that were prepaid in January 1999. These notes were convertible into common shares of Canadian Airlines Corporation subject to certain terms and conditions. Following the redemption of the notes involved in this current transaction, approximately C$37 million of these notes remain outstanding. Canadian Airlines will also accept delivery of two new leased Boeing 767-300ER aircraft in the fourth quarter of this year. These aircraft will replace two additional DC10-30 aircraft that will be leaving Canadian Airlines' fleet early next year. Canadian Airlines is a founding member of the oneworld(TM) alliance made up of the world's leading airlines: American Airlines, British Airways, Cathay Pacific, Qantas Airways, and in the fall of 1999, Finnair and Iberia. With its partners, Canadian Airlines serves over 300 North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. destinations and more than 600 worldwide, including over 80 flights weekly between Canada and Asia. Hearing Impaired TTD TTD - Telecommunications Device for the Deaf Number: 1-800-465-3611 |
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