Groupe Aeroplan, which operates Air Canada's frequent flyer programme, has agreed to lend the cash-strapped airline up to CAD$100 million (USD$86 million), both parties said on Monday.
Air Canada, the country's biggest airline, has already drawn down CAD$79 million of the loan.
The loan comes at a time when many in the industry are concerned that Air Canada, hobbled by debts, may be forced into bankruptcy protection for the second time in six years.
The secured, revolving loan is available until June 30, 2010, and is secured by Air Canada's interest in Air Canada Vacations, which specialises in custom travel packages.
Air Canada is required to raise at least CAD$600 million from lenders under the terms of a set of tentative agreements reached with its Canada-based unions this month on a moratorium on funding its pension fund.
If it is able to raise the money, the carrier said it will terminate the loan agreement with Aeroplan.
Air Canada has said it is in talks with several lenders. One is Export Development Canada, a federal financing agency.
The airline said in a statement it has repaid about CAD$40 million to Aeroplan to reverse amounts it had received from the company under a November 2008 prepayment agreement.
