Air Canada says it is making progress in shoring up its efforts to avoid having to seek court protection from creditors, a key piece of that coming in an agreement with one of its major credit card processors to preserve liquidity.
The deal will drop the level of unrestricted cash the airline is expected to have on hand by $100 million to $800 million.
Achieving a deal with the credit card processor was one of several efforts upon which the airline has been focused to help it preserve liquidity.
Chief among them is obtaining a funding moratorium on pension payments. The airline is seeking a 21-month moratorium on $650 million of pension payments required to address its $2.9-billion underfunded pension.
