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Why Is Air Canada Losing Money?

Fri Feb 16, 2001 8:20 am

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?
 
flyyul
Posts: 4395
Joined: Sun Jun 25, 2000 11:25 am

RE: Why Is Air Canada Losing Money?

Fri Feb 16, 2001 8:31 am

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
 
Red Panda
Posts: 1433
Joined: Wed Jun 14, 2000 12:58 pm

RE: Why Is Air Canada Losing Money?

Fri Feb 16, 2001 8:37 am

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

r panda
 
AirCanadaMan
Posts: 458
Joined: Sun Feb 27, 2000 4:42 am

RE: Why Is Air Canada Losing Money?

Fri Feb 16, 2001 9:19 am

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.
 
flyyul
Posts: 4395
Joined: Sun Jun 25, 2000 11:25 am

RE: Why Is Air Canada Losing Money?

Fri Feb 16, 2001 12:29 pm

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
 
polaris
Posts: 1131
Joined: Thu Feb 10, 2000 7:03 am

RE: Why Is Air Canada Losing Money?

Fri Feb 16, 2001 12:40 pm

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.
 
chopper
Posts: 129
Joined: Mon Aug 08, 2005 12:16 am

RE: Why Is Air Canada Losing Money?

Fri Feb 16, 2001 12:41 pm

Could it be because were paiting 7 of them 737 jets
 
gmonney
Posts: 2076
Joined: Fri Jan 12, 2001 2:59 pm

Question?

Fri Feb 16, 2001 12:45 pm

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!
 
Red Panda
Posts: 1433
Joined: Wed Jun 14, 2000 12:58 pm

RE: Why Is Air Canada Losing Money?

Fri Feb 16, 2001 1:42 pm

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.