Air Canada parent says airline will survive

Mon Jun 8, 2009 3:54am EDT
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KUALA LUMPUR (Reuters) - Air Canada's parent company ACE Aviation Holdings Inc said on Monday that the troubled airline would survive.

"I firmly believe Air Canada will survive," said Robert Milton, CEO of ACE, at the annual International Air Transport Authority's general meeting. "But it's a volatile business."

The Canadian government has appointed a mediator to try to settle disagreements between Air Canada and its unions and retirees over the future of the airline's pension plan.

A solution to pension funding woes and concessions from unions are seen as crucial to keeping Air Canada from filing for bankruptcy protection for the second time in six years. (Reporting by Raju Gopalakrishnan; Editing by Neil Chatterjee)