Air Canada Says It May Be Interested in Continental : Airlines: The Canadian flag carrier has asked for more information. Meanwhile, Maxxam Inc.’s rival bid clears a hurdle.

Air Canada on Wednesday emerged as a potential bidder for Continental Airlines Inc., but a bankruptcy court judge approved preliminary agreements in Maxxam Inc.’s rival effort to take control of the carrier.

Air Canada, which has been having troubles of its own dealing with recession and fare wars, won more time to consider a bid. The agreements give Canada’s national flag carrier 10 days to get more information from Continental and reduce the minimum counter bid by $15 million.

“We know that everybody doesn’t always get what they want, but we have a bird in the hand and therefore I’m going to approve” Maxxam’s preliminary agreements, U.S. Bankruptcy Judge Helen Balick said.

Maxxam is leading an offer to invest $350 million in Continental, the nation’s fifth-largest airline, in exchange for a 72% stake in the carrier. The agreement approved Wednesday sets a minimum counter bid at $385 million.

The court also approved a payment to Maxxam of between $8 million and $12 million if the deal falls apart.

Creditors opposed to the Maxxam-led effort say the deal would saddle Continental with too much debt.

Air Canada officials had been scheduled to meet today with Continental Chief Executive Robert R. Ferguson III, but it was unclear whether the meeting would proceed in light of the time extension granted to Air Canada.

Hollis Harris, Air Canada’s chief executive and president, resigned as head of Continental last August in a management shake-up and was replaced by Ferguson. Harris was named to head Air Canada in February.

Earlier this month, Air Canada announced that it would eliminate 1,809 jobs, or 9% of its work force, because of the slow economic recovery and heavy discounting by its U.S. rivals.

The job cuts brought the airline’s total job cuts for the past 18 months to 4,000. Air Canada said more cuts are planned for early next year.

Continental filed for Chapter 11 bankruptcy protection from its creditors in December, 1990, amid rising fuel prices and intensified Persian Gulf tensions.