By THE CANADIAN PRESS – 50 minutes ago
MONTREAL — Air Canada (TSX:AC.A) has reached an agreement with one of its major credit card processors that will drop the level of unrestricted cash the airline is expected to have on hand to $800 million.
Air Canada says the move will help it maintain financial stability as the cash-strapped airline deals with weak economic conditions. Under the memorandum of understanding, the airline will provide the credit card processor with security to be accumulated over time.
Air Canada has been looking to cut at least $250 million in costs and raise more cash but its CEO has said he doesn't foresee the need for massive layoffs or a bankruptcy protection filing to help it survive.
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