As you can see the issue of Air Canada raises alot of hot opinions amongst Canadians.
However, on any objective analysis (in my opinion for what it is worth--I practise aviation law and hopefully know something about the issue, I hope!)--in light of the recent deal reached with all of its unions AC
is in good shape short to medium term. While they could well have faced liquidation in absence of a deal with unions, they got the deal, and previously got financing from Deutschbank which was conditional on a deal with unions and they got that, which in and of istelf says something positive. There is no question AC
needs to come up with a new business model, some say they have done so, focusing on a LCC approach domestically and providing full services on their extensive international route network.
With respect to those who differ, I believe it is unrealistic to suggest that AC
is in any more difficulty at the moment than US carriers in Chp11. For the avoidance of doubt, I would not have said that before the cost savings deal that was reached against all odds and at last minute (the Cdn arm of the UAW who represent a large number of employers played teamster style aggressive). But in the end they got a good deal and concessions.
There is another factor that supports AC
: the canadian federal government will NOT allow AC
to fail. This topic has been debated to death on a.net but a political and economic analsysis shows that the govt could not permit AC
to go under. Even when the much smaller CP
failed years ago it caused sufficient problems for the federal government to essentially impose the solution on AC
. Many argue had they simply let CP
fail then and not imposed their debt, employees and unions (this is no slight on any ex CP
employee) on AC
, then AC
would not have become insolvent in the first place.
will go on. Now, that said, I agree with YYZ717 to the extent that AC
's long term viability depends on its ability to cut costs, however, there is no risk to the flying public in buying tickets on AC
, at least no more risk (I would say less given the poltical bailout if necessary in Canada) than US, UA
or even AA
I've put my money where my mouth is and purchased Exec First (business class) tickets on AC
to Asia in months to come for business. I can tell you that their product is justoutstanding on ExecFirst.