Topic Author
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Canadian Airlines

Mon Apr 16, 2001 10:42 am

Just this question:
Why didn't Canadian OneWorld partners help Canadian ?
Work Hard But Play Harder
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RE: Canadian Airlines

Mon Apr 16, 2001 11:00 am

Remember the foreign ownership cap? It's set at 25% and I believe AA wanted to inject more funds, but Canadian government refused to budge, so CP went down the drain. Correct me if I'm wrong.
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RE: Canadian Airlines

Mon Apr 16, 2001 11:04 am

They did as much as they could. CP was deep in debt and required lots of money. Oneworld partner American helped bail them out twice if I recall correctly. They couldn't stomach a 3rd time even with the Onyx Corporation backing the bid to take over AC. They never gathered up enough interest among AA BA and QF ( or whoever) to match the Star Alliance backing of Air Canada. Then when Onyx's bid fell through they all slowly let CP go despite a code share agreement betwen AC and AA that didn't last a year if I recall.
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RE: Canadian Airlines

Mon Apr 16, 2001 11:23 am

You're right on the money, Watewate. But CP was also already so ill-managed financially that by the time CP's management woke up and smelled the coffee, it was too late and conditions were already set for a takeover by Air Canada. Even if Onex had successfully taken over CP, there would've been such a huge debt load that the airline might not even be able to operate properly after having to sell so many airplanes and other assets in order to satisfy the creditors - or being seized en masse by creditors. I've heard about attempted seizures of CP 744s by creditors in Hong Kong.

A lot more CP employees would've lost their jobs and many routes would have been disrupted domestically and internationally if CP were to have entered Chapter 11 while under the ownership by a non-airline company. When you think about it, it was actually better that Air Canada take CP over, even though the idea was not terribly popular with the Canadian public and CP's employees. This saves even more disruptions in airline service. There were a lot of Canadian communities which had only CP service before AC took over CP. The same went for certain international routes, such as YVR-NRT.
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RE: Canadian Airlines

Mon Apr 16, 2001 7:05 pm

I was very disappointed having to fly CP (thru a travel agency booking). I hope AC beats some common sense into them. AC is very good, CP is not.

- caravelle
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RE: Canadian Airlines

Tue Apr 17, 2001 11:14 am

CP was in my opinion better than AC.
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RE: Canadian Airlines

Tue Apr 17, 2001 11:30 am

CP service was superior in all aspects to AC, at least in my experience.
Topic Author
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RE: Canadian Airlines

Tue Apr 17, 2001 12:13 pm


You're very right, CP was indeed superior to AC!!

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RE: Canadian Airlines

Tue Apr 17, 2001 12:17 pm

I too think that CP rules all the way..
If only they let me fly the plane...
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RE: Canadian Airlines

Tue Apr 17, 2001 12:20 pm

I'm going to be the odd one out and say hooray for AC, glad Canadian is gone. But hey, it's all a matter of perception, tastes and luck.

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