article below says it all:
Source Toronto Star
October 5th 2001
Air Canada got monopoly wish; let it suffer
Re Air Canada was fine until Liberals interfered, Letter, Oct. 4.
It appears that Chris Timson is ignorant or in denial of the true facts surrounding Air Canada's existence.
The Liberals created Air Canada in 1937 and made it the government's pet by allowing it to have a virtual monopoly on route allocations, government financing, loan guarantees, etc.
Canadian Pacific Air Lines, on the other hand, only operated the routes rejected by Air Canada and, until 1959, wasn't allowed to operate a trans-continental route.
Air Canada's beloved pet status continued right up until 1988, when upon being privatized, it had all its debts wiped clean and kept the proceeds from its initial stock issue.
As for Canadian Airlines employees refusing to participate in "fair job bids," again Timson ignores the true facts. Both the Air Canada CUPE and CAW locals represented the airlines and their position on merging was a date-of-hire dovetailing of seniority.
It appears Timson believes there should be one set of rules for Air Canada and another set of rules for everybody else.
As for Gerry Schwartz's Onex bid to merge the two airlines, unlike Air Canada's "no layoff" promise, which the airline proceeded to renege on in December, 2000, Schwartz identified staff surpluses and had allocated $750 million for early retirements and buyouts, which, had he been successful, would have greatly reduced staff levels by now.
Last, throughout Air Canada's entire existence, it always believed it should be the only airline in Canada, and, as the old saying goes: "Be careful what you wish for, you might just get it."