Air Canada's woes may be short term

Discussion in 'Air Canada | Aeroplan' started by ACMM, Oct 14, 2011.  |  Print Topic

  1. ACMM
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  2. milchap
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    I also read an article by an analyst who said that he would not be surprised if AC went back into bankruptcy protection in a few years. I could not find the link.
     
  3. ACMM
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  5. tcook052
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    Since when have AC's woes ever been short term? Seems there's always something on the horizon to worry about from labour disruptions to bankruptcy. In my near decade of participating on the topic on several IBB's the "good times" have been few & far between and vastly outnumbered by the woes.

    That may be, of course, the nature of the beast to overly dwell on bad news over good but is that an unfairly pessimistic view to others here?
     
  6. ACMM
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    I suspect not. It seems AC is always in some sort of turmoil or another :(

    [From my milePoint enabled iPhone]
     
  7. mowogo
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    AC is pretty much hampered by being the flag carrier, and having to fly or finance routes that have no chance of being profitable, but are instead classified as essential service. Add in employees who expect and demand government level benefits and job protections, and you have a disaster. With that said though, AC is still my favorite airline in North America.
     
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  8. ACMM
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    Do not forget the requirement that they must serve in both official languages while other airlines do not have to.

    [From my milePoint enabled iPhone]
     
  9. AC is working hard to trim costs and compete at lower price points. Their desire to start a LCC is a desire to compete at those lower price points with fewer amenities.
    Some people say their business model is broken but my thought is that their labor model needs to be fixed and then they will compete properly and make decent profits.
    I'm not being anti union here but simply understanding the underlying problems with their inability to make a profit. Their other costs are in line and their planes are full so the problem is pretty obvious.
     
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  10. tcook052
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    Which routes?

    I know AC has a heavier legislative load than its competition and that's something I think should be rectified but probably due to politics never will be, sadly.
     
  11. AC is not required to fly any route it does not want to. Those days are long gome.
     
  12. tcook052
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    I thought as much but was curious what previous poster would reply.
     

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