Teej13
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Joined: Mon Feb 12, 2001 5:52 am

Would AC Be In Trouble Now Had They Not Bought CP?

Mon Oct 01, 2001 1:48 am

If Air Canada had left well enough alone, and not bought out Canadian Airlines, do you think they'd be in the financial trouble they're in now? Nobody can deny the economic impact of 9/11, but what about the fact that AC was hurting before then? Did they spread themselves too thinly and become vulnerable to any type of economic downturn?

 
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yyz717
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RE: Would AC Be In Trouble Now Had They Not Bought CP?

Mon Oct 01, 2001 2:05 am

They would probably still be in financial trouble. Canada, like most of the western world, has come ended about a 9-year economic growth phase. AC should be in a strong financial position..instead they have a huge debt load and are facing possible bankruptcy. They should get rid of Milton.

I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
Teej13
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Posts: 447
Joined: Mon Feb 12, 2001 5:52 am

RE: Would AC Be In Trouble Now Had They Not Bought

Mon Oct 01, 2001 2:08 am

You're right. Milton should go. AC is now ill-equipped to deal with an economic downturn. Look at Singapore Airlines.. they're hurting like the rest of the industry, but they're got a solid foundation.
 
AC183
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RE: Would AC Be In Trouble Now Had They Not Bought

Mon Oct 01, 2001 3:09 am

I think the industry would have been better off had CP been allowed to die (ie- the debt disappeared) and it's competitors hired on as many of the staff and take on it's aircraft, or possibly the company even having been restarted without so much debt. The catch is, as I've said before, that politically this was not allowable. Essentially AC was given two choices: take over CP, or else... the alternative was never voiced, but the government basically said "you won't like the alternative."
 
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wjv04
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RE: Would AC Be In Trouble Now Had They Not Bought CP?

Tue Oct 02, 2001 11:40 am

I hate aircanada for two reasons
1. They were as bad off as CP
2. The government buys the aircraft for them... when they get in to difficultys, they sell aircraft, and make money..

oh ya there paint job sucks
 
fallingeese
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RE: Would AC Be In Trouble Now Had They Not Bought CP?

Tue Oct 02, 2001 11:48 am

Yes and No...

If they hadn't bought Canadian they still would find themselves in trouble at this point in time, though not as severe. Since they did they benifitted by gaining some more useful slots and profitable flights.

I agree it's time for Milton to say goodbye.
Mark McWhirter...Contrails Photography