Former airline – and a canal (6)
I believe the answer is:
panama
'canal' is the definition.
'former airline and a' is the wordplay.
'former airline' becomes 'panam' (I am not sure about this - if you are sure you should give a lot more credence to this answer).
'and' is a charade indicator (letters next to each other).
'panam'+'a'='PANAMA'
Can you help me to learn more?
(Other definitions for panama that I've seen before include "Headgear for a canal" , "Great American canal or tropical hat" , "Central American country" , "Hat woven from jipijapa leaves" , "Hat; Central Am. canal" .)