CANADIANAirlines is thought to be drawing up plans with its Oneworld partners to fight off Air Canada’s £39m hostile bid.
The board of Canadian is to tell shareholders by tomorrow what its recommendation is after Air Canada offered to buy all of Canadian’s shares.
A spokesman for British Airways confirmed BA and other Oneworld airlines were studying the situation but refused to say if a rescue package was being drawn up.
Air Canada has given Canadian’s shareholders, including 33% stakeholder American Airlines, until December 7 to accept the offer. If rejected, the airline could go bankrupt unless Oneworld partners inject fresh capital.