Air Canada: $3.7-billion pension deficit eliminated, small surplus at Jan. 1
MONTREAL – Air Canada (TSX:AC.A) says its domestic pension plans had a small surplus as of Jan. 1, according to preliminary estimates — contrasting with the $3.7-billion solvency deficit that they had a year earlier.
The airline says several factors contributed to the turnaround, including a 13.8 per cent return on investments in 2013.
Air Canada also applied a different ratio for calculating future pension obligations, reduced obligations through benefit amendments and made a $225-million contribution towards the solvency deficit.
Pension obligations have been a major drag on Canada’s largest airline for many years, resulting in friction with Air Canada’s labour unions at times as well as a significant operating expense.
The company says a final estimate of the domestic pension’s financial health will be completed by the end of June.
News from © The Canadian Press, . All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.
Join the Conversation!
Want to share your thoughts, add context, or connect with others in your community?
You must be logged in to post a comment.
