Air Canada announced that it has applied to the Alberta, British Columbia, Ontario and Quebec Securities Commissions to compel disclosure of specific information on various matters including:
* the full nature of Airco`s various agreements with AMR and its affiliates, including details of any termination payments under the 10 year alliance agreements and details of proposed annual payments;
* the full nature of the relationship between Onex and AMR;
* the termination payments that Canadian Airlines currently owes to AMR;
* the terms of AMR`s Agreement with its pilots which would significantly affect flying by Air Canada; and
* the magnitude, nature and status of AMR`s poison pill exchange rights to acquire massive amounts of equity from Canadian Airlines Corporation, which would significantly dilute Canadian`s shareholders.
“We believe that all of these provisions either have not been fully and properly disclosed or have not been disclosed at all,” said John M. Baker, Vice President and General Counsel. In light of Onex`s latest announcement respecting modifications to its relationship with AMR, this information is of critical importance - both to Air Canada shareholders, as they assess the Airco offer, and to Canadian Airlines shareholders, as they consider the Air Canada offer.
“It is unconscionable for all arrangements and proposed arrangements with AMR to be kept secret, when shareholders of both Air Canada and Canadian Airlines have to make such an important decision,” said Mr. Baker.