Finance Minister Jim Flaherty announced the extension on the cap to January 2021 and a requirement that payments toward the deficit average C$200 million ($194 million) a year for seven years, with a minimum of C$150 million each year.
"We do plan on supporting it," said Bruce Aubin, who heads the pension committee for Air Canada's retirees.
"I think it's reasonably fair. I think both Air Canada and the government did a good job in coming to a supportable agreement, and it should provide a period of stability and an opportunity for the current solvency deficiencies that exist in the plan to recover as hopefully the economy improves. And the problem at that stage may well go away."
(Reporting by Randall Palmer; Editing by Frank McGurty and Bernadette Baum)
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