Bid would merge Canada airlines

MONTREAL Toronto businessman Gerald Schwartz and American Airlinesparent AMR Corp. offered to invest $669 million to take control ofAir Canada and Canadian Airlines Corp., a proposal that would leaveCanada's struggling airline industry with one major carrier.

Schwartz would make the investment through Onex Corp., a publiclytraded firm that holds stakes in caterer Sky Chefs and CelesticaInc., one of the biggest contract manufacturers of electronics parts.Onex would have a 31 percent shareholding in the combined airlinesand AMR a 14.9 percent stake.

Shareholders of money-losing Canadian Airlines, whose board hasrecommended the bid to stockholders, would get either $2 …