Air Canada Gets $98M in New Debt

Air Canada has just received $98 million in cash in a loan issued by General Electric Capital.  The money will be used to support continuing operations. Air Canada now has more than $400 million in new debt just from the last month. Air Canada has also said the company has had some trouble getting credit from traditional methods because of the financial crisis. The Air Canada stock is up about 15% following the news last trading day. The company, however, continues to struggle from weakening demand and volatile oil prices. Last week, American discount carrier Southwest greatly reduced its prices to try attract flyers during the holiday season who would otherwise not consider a trip because of the raising costs and tuff economic times.


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