20 December 2013
Air Canada said the government of Canada has advised the airline that new regulations applicable to Air Canada´s pension funding obligations have been approved.
As part of the new regulations, Air Canada will be required to make payments of at least USD150m annually with an average of USD200m per year, to contribute an aggregate minimum of USD1.4bn over seven years in solvency deficit payments, in addition to its current service payments.
Air Canada may elect to opt out of the new regulations under certain circumstances.
In addition, previously announced changes to the early retirement provisions in Air Canada´s Canadian defined benefit plans have been approved by the Office of the Superintendent of Financial Institutions and will become effective on January 1, 2014.
Air Canada is Canada´s largest domestic and international airline serving more than 175 destinations on five continents. Canada´s flag carrier is among the 20 largest airlines in the world and in 2012 served close to 35m customers. For more information, visit: www.aircanada.com.