Air Canada Announces Take-Up Of Shares Of Canadian Airlines

Air Canada today announced that 853350 Alberta Ltd., a newly formed corporation owned in part by Air Canada, has taken up and paid for approximately 82 per cent of the shares of Canadian Airlines Corporation pursuant to its offer that expired December 23, 1999. The company 853350 Alberta Ltd. is also in the process of closing its acquisition of the preferred shares of Canadian Airlines International Ltd., held by an affiliate of AMR Corporation, for approximately $59 million.“Beginning today we are going to build on the success and heritage of our two great airlines as we evolve into a truly global carrier,” said Robert A. Milton, President and Chief Executive Officer. “Work will begin immediately with Canadian Airlines` creditors to restructure the debt and other long-term obligations.”