Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Air Canada Reaches Pension Agreement With O S F I  
User currently offlineB747-437B From , joined Dec 1969, posts, RR:
Posted (12 years 2 weeks 3 days 19 hours ago) and read 3518 times:

MONTREAL /CNW Telbec/ - Air Canada announced that it has
reached an agreement with the Office of the Superintendent of Financial
Institutions (OSFI) in respect of pension funding relief. The agreement
establishes a Protocol under which OSFI will recommend to the Federal
government the adoption of a regulation which would allow Air Canada to extend
the payment of pension plan solvency deficiencies over a period of 10 years as
opposed to the current maximum of 5 years.

The Protocol provides that the solvency deficiencies will be paid down in
accordance with an agreed upon schedule of variable annual payments as opposed
to the current regulatory requirement for equal annual payments. Air Canada
has agreed to request court approval to remit approximately $34 million in
special payments to certain pension plans immediately.

In consideration of OSFI proposing a regulation allowing for the
elimination of any deemed trust which may have arisen as a result of required
solvency deficit payments prior to the execution of the Protocol, Air Canada
and OSFI have agreed that upon Air Canada's emergence from CCAA proceedings,
the pension plan trustees will receive subordinated secured promissory notes
in the aggregate amount of $346.6 million with a second charge over the assets
of Air Canada. The notes will be reduced as solvency payments are made in
accordance with the agreed-upon schedule. The terms of the notes will not
materially affect the aircraft and exit financing to be made available to Air
Canada pursuant to the Global Restructuring Agreement with GECAS nor
materially restrict any future secured or unsecured financing.

The implementation of the Protocol is conditional upon (i) CCAA emergence
on or prior to December 31, 2004; (ii) the amended regulations coming into
effect, and (iii) consent being obtained from plan beneficiaries through the
unions and court appointed representatives of non-unionized employees and

The Protocol satisfies the funding relief condition in the Standby
Purchase Agreement with Deutsche Bank.

2 replies: All unread, jump to last
User currently offlineYyz717 From Canada, joined Sep 2001, 16525 posts, RR: 54
Reply 1, posted (12 years 2 weeks 3 days 18 hours ago) and read 3409 times:

This is disappointing. OSFI should not be bending its guidelines to benefit AC. More government favouritism for AC.

I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
User currently offlineRT514 From , joined Dec 1969, posts, RR:
Reply 2, posted (12 years 2 weeks 3 days 11 hours ago) and read 3347 times:

This is disappointing. OSFI should not be bending its guidelines to benefit AC. More government favouritism for AC.

Let's see...
Love 'em or hate 'em, Canada's only international, world-class carrier has gotten a much needed step toward survival and the pension plans of the employees may actually be around now when they retire.
...All of this without an outright government bailout. I wouldn't say that this news is disappointing at all.

Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
Air Canada Reaches Agreement With IAM posted Sun May 16 2004 08:22:56 by B747-437B
Air Canada Reaches Agreement With Union On ZIP posted Thu Sep 12 2002 15:38:34 by Dash8King
Air Canada Reaches Deal With Unions Over New A/c posted Sat Mar 6 2004 02:50:25 by CanadaEH
EADS Reaches Jobs Agreement With UK posted Tue Jul 18 2006 13:22:06 by RichardPrice
Air Canada To GRU Now With The A343 posted Tue Feb 14 2006 16:59:10 by Hagic
Flyi Reaches New Agreement With AFA posted Wed Mar 23 2005 18:16:34 by StowAway
Air Canada Signs Cargo Deal With World Airways posted Wed Mar 9 2005 17:36:48 by AC7E7
AFA Reaches Tentative Agreement With US Airways posted Thu Dec 16 2004 21:21:50 by KITH
Air Canada Daily To DEL With A 345s & 343s posted Tue Sep 14 2004 21:50:47 by Behramjee
Air Canada Rescue May Rest With Giant Funds posted Mon Apr 5 2004 15:36:05 by Canadi>nBoy