Air Canada completes aircraft sale-leaseback transaction valued at approximately cad $565 million

Air Canada today announced the completion of an aircraft sale-leaseback transaction providing approximately CAD $565 million of new funding for the carrier. In an agreement with GE Capital Aviation Services, Inc. (GECAS), Air Canada will sell and leaseback 16 Airbus A320 and one A319 owned aircraft.

"This transaction demonstrates Air Canada's ability to raise liquidity in these difficult times and is consistent with the airline's objective of maintaining stability in the current economic environment," said Rob Peterson, Executive Vice President and Chief Financial Officer. "While further cost reductions are still required, we remain confident that the company's liquidity requirements will continue to be met in light of current and anticipated needs."

In addition, under the agreement, Air Canada will lease six new Airbus aircraft comprised of either A319s or A320s to coincide with the return of older A320 aircraft in 2003 and 2004. With the replacement of the six aircraft averaging approximately 12 years of age, with new aircraft at approximately the same lease costs, Air Canada will benefit from reduced maintenance costs and the operational efficiencies associated with the use of the latest aviation technologies.