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Why Is Air Canada Losing Money?  
User currently offlineJMJ From , joined Dec 1969, posts, RR:
Posted (13 years 6 months 2 weeks 4 days 10 hours ago) and read 1679 times:

Anyone have any insights on why Air Canada is losing money? Granted I don't fly that often but every time I do there seems to be no lack of customers. The planes are usually quite full, not always but usually. The lines are always long at check in. What's the problem?


8 replies: All unread, jump to last
 
User currently offlineFLYYUL From Italy, joined Jun 2000, 4976 posts, RR: 51
Reply 1, posted (13 years 6 months 2 weeks 4 days 10 hours ago) and read 1652 times:

Well the fuel prices haven't helped. The 737, DC9 and the F28's are the ultimate gas guzzers. They operate in Canadian dollars which puts them in a disadvantage, plus a restructuring of CP that was losing 2 mil a day!

Mark


User currently offlineRed Panda From Hong Kong, joined Jun 2000, 1521 posts, RR: 0
Reply 2, posted (13 years 6 months 2 weeks 4 days 10 hours ago) and read 1643 times:

AC may further remove some remote routes to save some bux.

r panda


User currently offlineAirCanadaMan From Canada, joined Feb 2000, 465 posts, RR: 0
Reply 3, posted (13 years 6 months 2 weeks 4 days 9 hours ago) and read 1624 times:

AC blamed it on weather and rising fuel prices.

But many other things are also involved, including the intergration, union settlements, new signs, aircraft painting etc.


User currently offlineFLYYUL From Italy, joined Jun 2000, 4976 posts, RR: 51
Reply 4, posted (13 years 6 months 2 weeks 4 days 6 hours ago) and read 1590 times:

Despite these many costs, Air Canada is now forced to cut an 8% capacity expansion plan, down to zero, and maybe the negatives. I dont think this is a way to help their financial situation if they cut routes from their big centres (YYZ,YVR,YUL). These tend to be the most profitable...

Your thoughts on the cutback,

Mark


User currently offlinePolaris From Canada, joined Feb 2000, 1143 posts, RR: 1
Reply 5, posted (13 years 6 months 2 weeks 4 days 6 hours ago) and read 1585 times:

No worries. This is common when any company tries to merge two or more entities. British Airways lost money when they merged British Caledonian into their system; Air France lost money when they merged UTA into their system, etc. Mergers have associated expenses. Weather in 2000 and fuel costs haven't helped matters. Some of this is business posturing, too.

User currently offlineChopper From United Kingdom, joined Aug 2005, 0 posts, RR: 0
Reply 6, posted (13 years 6 months 2 weeks 4 days 6 hours ago) and read 1583 times:

Could it be because were paiting 7 of them 737 jets

User currently offlineGmonney From Canada, joined Jan 2001, 2159 posts, RR: 20
Reply 7, posted (13 years 6 months 2 weeks 4 days 6 hours ago) and read 1581 times:

Does it cost more money to be soley in T1 and T2? Does the GTAA charge a lot of money? Has this change affected costs of operation, were all of the gates compatible with the aircraft fleet? Do they need more employees to operate these old terminals?

Thanks

G



Drive it like you stole it!
User currently offlineRed Panda From Hong Kong, joined Jun 2000, 1521 posts, RR: 0
Reply 8, posted (13 years 6 months 2 weeks 4 days 5 hours ago) and read 1569 times:

I am sure that AC knows where to cut. Don't worry, they won't cut profitable routes, they will only cut some remote routes or the frequency of flights to arpts, Federaton, for example.

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