Air Canada announced that it has accepted a proposal from a new service provider for the provision of its principal credit card processing services requirements in North America for Visa and MasterCard, for a five year term beginning at the expiry of the current agreements being replaced. Air Canada and the credit card processor have agreed to triggering events upon which Air Canada would be required to provide the credit card processor with deposits. The obligation to provide, and the amount of, deposits required would be based upon a matrix measuring, on a quarterly basis, both a fixed charge coverage ratio and unrestricted cash of Air Canada.
Agreement between Air Canada and the credit card processor is subject to certain conditions, including conclusion of formal documentation.
Air Canada is issuing this press release pursuant to its obligations under applicable Canadian securities law.
Source = CNW Group / Air Canada