Air Canada Pilots Are Opposed to Special Distributions of Shares to the Shareholders

On December 28, 2006, the motion of the Air Canada Pilots Association seeking, to block one or more special distributions of up to two billion dollars to ACE Aviation shareholders, Air Canada’s parent company, was denied. The organization intends to dispute this decision returned by an Ontario Superior Court judge.

The pilots are afraid that with this transfer of capital, the company will not be able to face a possible economic slow down. ACE Aviation would compromise its ability to meet its obligations to creditors, including its employees. Indeed, ACE Aviation, in its most recent annual report, indicates that its debt to its employee pension fund amounts to more than 1.4 billion dollars. Québec companies with the most important pension plan financial deficits are Alcan, Nortel and BCE with respective debts of 3.1 billion, 2.9 billion and 2.4 billion.

The pilots agreed to a large wage decrease two years ago, to avoid the bankruptcy of the national carrier. According to the December 28, 2006 edition of Presse Affaires, the pilots have a hard time accepting that the sacrifices they made result in rewards for the shareholders today.

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