Continental Airlines Inc., which formed a partnership last week with Air Canada to co-operate on ticketing and baggage handling, is objecting to Porter's application to the U.S. Department of Transportation for a foreign air carrier permit. Privately owned Porter has authorization through mid-2011 to operate between Canada and the United States, but having the permit would cut red tape. The Toronto Port Authority, which oversees Toronto City Centre Airport, doesn't have any terminal in place for new entrants to use to break Porter's monopoly at the island airport, Continental said in a regulatory filing this week. Meanwhile, ACE Aviation Holdings Inc., which owns 27 per cent of Air Canada, plans to redeem its remaining convertible senior notes and buy back up to $20-million of its own shares, or roughly 10 per cent of its stock. ACE.B (TSX) rose 39 cents to $5.74. CAL (NYSE) rose $1.03 (U.S.) to $12.77.