According to Canadian Airlines annual information form, 17 B737-200 aircraft had been hushkitted during 1998, and a further 13 hushkits were to have been fitted by December 31, 1999. Under Canadian Legislation, all remaining aircraft must have hushkits installed no later than April 1, 2002.
It also notes that because they are below the weight thresholds, all aircraft in the Canadian Regional Airlines fleet are exempt from Canadian and US noise regulations. And as far as I'm concerned those F28's that Regional flies are noisier than the 732's, at least they seem to be when they fly over.
As far as the future of AC, well, the Onex plan didn't give AC shareholders very much, and I don't think they would approve it. However, I think there was a lot of speculation, and alot of people would be very disappointed if they didn't have another bidder pay them alot of money for their stock. If you're interested there's a site with alot of information, especially all the related newpaper and editorial links for this at http://www.acemployee.com.
As far as AC goes, or the industry as a whole, I think getting rid of or reorganizing (ie-bankrupcy protection) the weak Canadian would be the best way to revitalize it. Being from Calgary, I know some CP employees, and it would be a shame, but I think the best way to make everything more secure would be to either have a new start up or a CP reorganization that sheds some of the debt and reorganizes the fleet and routings more efficiently.
As far as competition, the end of Canadian would be ideal for creating new competitors. Unlike in a merger, it would create a lack of capacity, a surplus of skilled workers, and host of facilities and equipment ready to start up a new carrier. That would be an environment to create a new airline in. But politically its unacceptable, and of course it would be very sad to see CP go. I hope in the end both AC and CP manage to survive as independant carriers. But perhaps like the employees at Eaton's, after bankrupcy a new company would save some of the jobs that were lost.