Air Canada said on Wednesday it has secured up to USD$195 million in financing from General Electric Capital, bolstering the carrier’s cash position.
The airline said the agreement sees the airline getting a USD$155 million secured loan that is due in 2014. The cash will be paid out in two tranches, with the first, providing USD$80 million and due in 2014, secured on Wednesday. The second tranche is expected to close by the end of January.
The agreement is subject to Air Canada also completing a sale and leaseback of a Boeing 777-300ER aircraft with GE Capital’s GE Commercial Aviation Services unit.
The sale and leaseback agreement has a 12-year lease term and will provide Air Canada with another USD$40 million.
Air Canada said the agreement was part of a series of measures the company has taken to shore up its liquidity. Earlier this month it raised CAD$70 million (USD$57 million) as the operator of its frequent flyer plan agreed to speed payment for reward tickets.
In November, the company said it has CAD$1.114 billion in cash on hand, not much above the CAD$1 billion level the airline considers to be a comfortable amount
