fallingeese
Posts: 2031
Joined: Sat Apr 28, 2001 2:33 pm

Air Canada

Wed May 30, 2001 7:18 am

Can any body help me with this...
Did Air Canada lose money last year and if so how much? If i remember correctly i think Westjet made more last quarter than Air Canada.
Mark McWhirter...Contrails Photography
 
AirCanadaMan
Posts: 458
Joined: Sun Feb 27, 2000 4:42 am

RE: Air Canada

Wed May 30, 2001 7:55 am

There is an artical in the most recent Macleans Magazine about the losses and profits of Canadas 3 carriers, Westjet, C3 and AC.

I dont remember the exact figures but,
Air Canada lost millions,
With a net loss around 168 million, with an operating loss of 293 million. (CAD)
Canada 3000 posted a profit of something around 9 million
Westjet had the highest profit, I cant recall the figure.
 
fallingeese
Posts: 2031
Joined: Sat Apr 28, 2001 2:33 pm

RE: Air Canada

Wed May 30, 2001 8:17 am

I'm not sure but i think i remember them also saying that Westjet was worth more than Air Canada! What a shocker, the new discount carrier upsetting the giant. I think Westjet will fall on hard times though, the 1.5 billion dollars of planes was a little bit overboard in my opinion, and with options for up to 94 737-700's they will have to expand into more competition, and maybe less profits. Damn those new 737-700's look great in Westjet colours  Smile.

Canadian Airlines forever!!!
Mark McWhirter...Contrails Photography
 
AirCanadaMan
Posts: 458
Joined: Sun Feb 27, 2000 4:42 am

RE: Air Canada

Wed May 30, 2001 8:25 am

Dont be fooled!
Westjet has a super management team who has not lead them wrong yet.
The Westjet brand is starting to be recognized and known, more and more people will continue to use them, especially if Air Canada continues to add fuel surcharges and various fare hikes.

These new NG's will increase profit with more passengers more efficiently and economically, while maintaing the image they currently have.

Im sure we can expect a full blown eastern expansion and northern routes to Whitehorse and Yellowknife within 10 years, look also towards new destinations in central and western Canada along wiht more frequencies.
Westjet is just getting started.
 
watewate
Posts: 2216
Joined: Sun Nov 12, 2000 6:00 am

RE: Air Canada

Wed May 30, 2001 8:28 am

Westjet operates 23 737-200s in its fleet. Considering that the order for 737-700 is for 36 firm and 58 options, Westjet has the luxury to not exercise its options. Also note that Westjet's presence in the east is minimal at best, and a fleet of 70+ a/cs doesn't sound like a stretch for a company operating high-frequency services.
 
fallingeese
Posts: 2031
Joined: Sat Apr 28, 2001 2:33 pm

RE: Air Canada

Wed May 30, 2001 9:38 am

Even with the 38 firm orders, does that include the 10 leases from GECAS and the 10 more options from them? With the NG numbering atleast 38 planes there has to be substantial expansion in some locations. Toronto, Montreal, and why not some key American destinations, like LAX from YYC and YVR? Any idea when Westjet plans to start the retirement of the 737-200's?

Canadian Airlines forever!!!
Mark McWhirter...Contrails Photography
 
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BO__einG
Posts: 2646
Joined: Sun Apr 30, 2000 5:20 am

RE: Air Canada

Wed May 30, 2001 12:21 pm

Westjet had flights to Vegas believe it or not.
I may be wrong but i tracked it down on flight tables at YYC.
I was surprised.. Either it was a crew trip or chartering for an airline.

GECAS is right.. its 10 so far including the first one I got somewhere. 2 more coming in 20 days or so..
Follow @kimbo_snaps on Instagram or bokimon- on Flickr to see more pics of me and my travels.
 
superdawg
Posts: 335
Joined: Sat Jan 22, 2000 1:45 am

RE: Air Canada

Wed May 30, 2001 10:41 pm

Westjet regularly has charter flights to Las Vegas from YYC and YVR, they have also operated charter flights to Palm Springs from YYC.
 
Guest

RE: Air Canada

Thu May 31, 2001 12:38 am

yes last year wasnt very good..is it true air canada has managed to get a stake in air transat?
 
AC183
Posts: 1496
Joined: Tue Jul 06, 1999 10:52 am

RE: Air Canada

Thu May 31, 2001 2:00 am

As far as WJ's LAS flights, they're strictly charter, and last year it was a real nuisance for me... my sister's plane was rescheduled for the early morning because they operated one of those charters.

WJ is doing quite well, and is indeed making plenty of money, but I do think there is risk involved in their new aircraft. Sure, they'll lower their fuel and maintenance costs and improve their reliability, but the new planes are expensive to buy in spite of their cheaper operating costs. The thing is that WJ is a capital-intensive operation, and alot of their stuff is owned by them outright rather than financed. This means that in order to grow their airline by adding another airplane it no longer is simply a few million dollars to buy an old 737-200, it's around $40 million for a new -700, so their growth may be slowed by this. They can get around it by leasing aircraft, which they are getting some of, but this takes away from the way their economics work to make costs so low. So basically I'm saying that WJ will do very well, but there are risks involved in buying new airplanes and also that I'm not sure they can continue to grow at the same pace they have for the last few years.

As to AC's finances, AC is a bigger company, but it's stock market valuation is lower than WJ's because it's not only shareholder equity in AC's value, but also the value of the leases, loans, bonds, etc that AC has financed itself with. As to the original question, AC lost money last year for many reasons, some of which are one-time items related to integration, and also for other reasons. Keep in mind that the airline industry is not what I'd call a solid investment at the best of times.

AC has NOT bought Transat. Anything you might have heard would more likely the proposed linkup with Skyservice.
 
fallingeese
Posts: 2031
Joined: Sat Apr 28, 2001 2:33 pm

RE: Air Canada

Thu May 31, 2001 8:06 am

Just a little word about the airline industry..

It's easy to make a small fortune in the airline industy, you start out witha large fortune!

Where do you think the next logical destination for Westjet to fly into is?

Canadian Airlines forever!!!
Mark McWhirter...Contrails Photography