Air Canada has been cleared for take-off. An Ontario court judge approved the battered airline's restructuring plan, and the company could emerge from bankruptcy protection as early as Sept. 30.

Air Canada has been flying under the cloud of creditor protection -- at times on the verge of liquidation -- for the past 17 months. Justice James Farley of Ontario Superior Court cleared the final legal obstacle Monday morning.

This comes after an agreement earlier this summer with the airlines' many unions to reduce labour costs by $1.1 billion.

Air Canada will aim to be a leaner more company to better compete with discount rivals like WestJet. The airline's plans include a smaller fleet, more international routes and possible spin-offs of some of its subsidiaries.

And after several false starts Air Canada will also have a new group of owners -- mostly bond holders and major creditors General Electric Co. unit and Deutsche Bank AG.

But convincing other investors to buy into the new airline may be even more work.

Though still trading for a few cents, current Air Canada shares are believed worthless, and Bay Street analysts are wary of the prospects for the new Air Canada stock.

"Long term I've never been a terribly interested investor in airline, said Martin Hubbes, fund manager for AGF. "I don't think they're a growth business… they kill each other all the time."

That may be why the judge warned Air Canada's management to drop its "Us vs. Them" attitude -- towards its unions and its customers.