The outcome will be unfortunate for the Canadian airline industry and country if Canadian Airlines succeeds in its fight to complete a lifesaving deal with AMR Corp., parent of American Airlines, Jean- Jaques Bourgeault told an international air transportation forum this week.

Canadian Airlines president Kevin Jenkins seemed to support Bourgeault's argument by saying AMR's chief interest in taking a $246 million equity position in his airline is to allow it to win service contracts.

Jenkins said time is running out for his airline. The last obstacle to its deal with AMR - withdrawal from Gemini, the computer reservations system it co-owns with Air Canada - has to be overcome.