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SpaceshipDC10
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Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 11:14 am

"Operating revenue fell to $3.72 billion compared with $4.43 billion in the year ago quarter."

"Air Canada is also accelerating the retirement of 79 older aircraft in a move that it says will simplify the airline's fleet, reduce costs structure and lower its carbon footprint."

https://www.ottawamatters.com/national- ... ic-2321527

It's not surprising but still, more than 1 billion difference compared to last year, that hurts. I wonder how much compensation cargo flights have generated amd Q2 should be interesting to discover in July.
 
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Dutchy
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 11:48 am

So which a/c are going to go.
Many happy landings, greetings from The Netherlands!
 
speedbird52
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 11:49 am

Dutchy wrote:
So which a/c are going to go.

767s and the oldest A320s I suppose
 
SpaceshipDC10
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 11:53 am

Dutchy wrote:
So which a/c are going to go.


accelerating the retirement of 79 older aircraft from its fleet – Boeing 767, Airbus 319 and Embraer 190 aircraft


https://aircanada.mediaroom.com/2020-05 ... 20-Results
 
LCDFlight
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 12:01 pm

It amazes me how carriers quickly wanted to dump the E190. Despite the current demand environment. Maybe it is the cheapest thing to dump (write down the least amount of scarce money).
 
bmibaby737
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 12:09 pm

In terms of the B763 and A319 exiting the fleet; does that include the Air Canada Rouge aircraft?
 
CAPTYXU
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 12:10 pm

Yes it includes Rouge
 
bmibaby737
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 12:13 pm

CAPTYXU wrote:
Yes it includes Rouge


That's a huge effect on Air Canada Rouge! According to Planespotters.net they have a fleet 66, which after the reductions would take them down to something like 19 A320/A321

Air Canada currently have:

13 A319
5 B763
14 E190

Air Canada Rouge have:

22 A319
25 B763

Which is the 79x aircraft
 
Thomaas
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 12:18 pm

bmibaby737 wrote:
CAPTYXU wrote:
Yes it includes Rouge


That's a huge effect on Air Canada Rouge! According to Planespotters.net they have a fleet 66, which after the reductions would take them down to something like 19 A320/A321

Air Canada currently have:

13 A319
5 B763
14 E190

Air Canada Rouge have:

22 A319
25 B763

Which is the 79x aircraft

Air Canada actually has 16 A319s, with 3 of those configured for Air Canada Jetz. I doubt all of Rouge’s A319s would be retired, given that it brings the total to 82 aircraft. You also have to consider that Air Canada has to to retire a few A320s that will be pushing 30 years of service in the next few months. Some of them were being stored this winter in order to keep cycles down for the busy summer travel season.
Last edited by Thomaas on Mon May 04, 2020 12:22 pm, edited 1 time in total.
 
SpaceshipDC10
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 12:20 pm

bmibaby737 wrote:
That's a huge effect on Air Canada Rouge!


I haven't searched for confirmation, but will Rouge remain? And since there's still the pending Transat A.T. deal with many A332s, that's a way to possibly simplify the fleet.
Last edited by SpaceshipDC10 on Mon May 04, 2020 12:22 pm, edited 2 times in total.
 
mxaxai
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 12:21 pm

LCDFlight wrote:
It amazes me how carriers quickly wanted to dump the E190. Despite the current demand environment. Maybe it is the cheapest thing to dump (write down the least amount of scarce money).

For many carriers, the E190 fills a niche between the E175 and CRJ-900 at their regional subsidiaries, and the A320 / 737 at mainline. Since most north american carriers have to operate the E190 at mainline contracts, it's the highest CASM aircraft. This also means that it's an "orphan" fleet, usually much fewer than their standard narrowbody fleets.

So it becomes an easy victim of fleet simplification.
 
chonetsao
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 12:23 pm

Air Canada needs to renew their fleet very soon. Even with these 79 aircrafts gone, there are still many that are approaching or over the magic 20 years in service landmark.
 
Razza92
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 12:46 pm

Wonder what this will mean for AC Rouge’s long haul destinations such as in the U.K.? Will these be taken over by mainline or canned completely. Interesting times ahead.
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 12:53 pm

chonetsao wrote:
Air Canada needs to renew their fleet very soon. Even with these 79 aircrafts gone, there are still many that are approaching or over the magic 20 years in service landmark.

Well that’s why AC ordered a lot of 737s and A223s.
 
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ACCS300
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 12:57 pm

chonetsao wrote:
Air Canada needs to renew their fleet very soon. Even with these 79 aircrafts gone, there are still many that are approaching or over the magic 20 years in service landmark.


They are actively renewing, just in the past few years :

45 A220-300 ordered, 4 delivered
50 737MAX8 ordered, 24 delivered but now grounded
37 787s ordered, all delivered
+several used A330s purchased
+several used A32S purchased mostly for Rouge

I think AC was being very pro-active with fleet renewals but then the MAX groundings happened.
 
MIflyer12
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 1:00 pm

chonetsao wrote:
Air Canada needs to renew their fleet very soon. Even with these 79 aircrafts gone, there are still many that are approaching or over the magic 20 years in service landmark.


Twenty years holds no magic, as evidenced by a quarter of today's fleet being older than that. Carriers just need efficient, competitive Tech Ops. Among North American fleets:

United, avg age 15.8 years
Delta, 14.9 years
Air Canada, 13.4 years
Southwest, 12.1 years

The 26 MAX on order will bring down the average measurably.
 
beechnut
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 1:43 pm

Besides the 79 retirements, a few interesting things and omissions from the report (management discussion and analysis here: https://www.aircanada.com/content/dam/a ... MDA_q1.pdf).

It doesn't sound like the A220 deliveries are being deferred. They are still stating a target of 14 aircraft delivered in 2020.

Still lots of uncertainty on the MAX:

Twenty-four Boeing 737 MAX 8 aircraft have been delivered. The delivery schedule for the remaining 26 Boeing 737 Max 8 aircraft and their return to service is uncertain.


Sounds a bit terse, the last report still expected deliveries in 2020, which now seems unlikely. Some details on the MAX compensation:

Air Canada has concluded its discussions with Boeing to settle the terms of an arrangement in relation to the grounding of the Boeing 737 MAX aircraft. The settlement payments contemplated by the arrangement were made to Air Canada during the fourth quarter of 2019 and during the first quarter of 2020. The compensation is accounted for as an adjustment to the purchase price of current and future deliveries and will flow through Air Canada’s consolidated statement of operations as reduced depreciation expense over the life of the aircraft, and as a reduction to additions to property and equipment on the consolidated statement of cash flow.


Also another A330 delivery is expected; 4 have been temporarily converted to an all-cargo configuration, along with 3 77Ws. No mention of the Air Transat merger at all. No mention about what Rouge will do without 767s, if those indeed are included in the 79 retirements.. Potential A321LR or XLR order once traffic demands rebound somewhat? Just a wild guess, but it might make sense in a post-COVID-19, lower-demand world. If the Transat merger goes through perhaps Rouge will disappear as a brand? That could explain the loss of the 25 767s; the Air Transat fleet of A330s and A321s would take over.

Still lots of uncertainty, so hard to predict what will happen in the next few months.

Beech
 
enplaned
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 1:46 pm

LCDFlight wrote:
It amazes me how carriers quickly wanted to dump the E190. Despite the current demand environment. Maybe it is the cheapest thing to dump (write down the least amount of scarce money).


Rule of thumb - E190s have approximately the trip cost of an A319 with many fewer seats.

Yes, that's not good.
 
Jetport
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 1:51 pm

Any chance they get rid of Rogue entirely? I would think they could keep the Air Transat name which might work better since it hasn't been associated with Air Canada in the past. Lots of customers who flew on Rogue thought they were booking Air Canada and than got a nasty surprise. Customers have even lower expectations of Air Transat than Rogue, everyone expects no frills and and a crappy experience when they book an Air Transat ticket. Air Canada should keep the Air Transat name and lower service even more (if that is possible) to cut prices/costs and give a true European style ULCC experience.
 
Dominion301
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 1:52 pm

My guess is TS will become the new Rouge and Rouge will be gone for good.
 
Jetport
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 1:53 pm

enplaned wrote:
LCDFlight wrote:
It amazes me how carriers quickly wanted to dump the E190. Despite the current demand environment. Maybe it is the cheapest thing to dump (write down the least amount of scarce money).


Rule of thumb - E190s have approximately the trip cost of an A319 with many fewer seats.

Yes, that's not good.


I find that hard to believe. If the E190 has essentially the same trip cost as the A319 how did they sell any at all?
 
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 1:56 pm

Well, given things will bounce back by Christmas.... :stirthepot:
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Dutchy
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 2:00 pm

ordbosewr wrote:
SpaceshipDC10 wrote:
Dutchy wrote:
So which a/c are going to go.


accelerating the retirement of 79 older aircraft from its fleet – Boeing 767, Airbus 319 and Embraer 190 aircraft


https://aircanada.mediaroom.com/2020-05 ... 20-Results


Air Canada is accelerating the retirement of 79 older aircraft from its fleet – Boeing 767, Airbus 319 and Embraer 190 aircraft, with the Embraer aircraft exiting the fleet immediately. Their retirement will simplify the airline's overall fleet, reduce its cost structure, and lower its carbon footprint.


Makes sense, eliminating two aircraft type from the fleet. That will reduce cost when they will be starting up again. Will not be so great for the pilots and engineers who are only trained on those. Does this mean they will be let go as well?
Many happy landings, greetings from The Netherlands!
 
Skywatcher
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 2:02 pm

There was a -974 exchange loss in the quarter. That I suspect is the result of the tanking Cdn. dollar. That is a huge part of the quarterly loss.
Also of note, there was a 132million share buyback amount in the latest quarter-way higher than I would have expected. I hate the way share prices are inflated this way.
 
Blerg
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 2:03 pm

I see both Air Canada and American Airlines are retiring their E90s. I can't believe they are that old, could it be that they are not as good performers?
 
drdisque
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 2:04 pm

Jetport wrote:
enplaned wrote:
LCDFlight wrote:
It amazes me how carriers quickly wanted to dump the E190. Despite the current demand environment. Maybe it is the cheapest thing to dump (write down the least amount of scarce money).


Rule of thumb - E190s have approximately the trip cost of an A319 with many fewer seats.

Yes, that's not good.


I find that hard to believe. If the E190 has essentially the same trip cost as the A319 how did they sell any at all?


Unrealistic operating costs from Embraer and the enticing possibility for E190 pilots to operate at a lower scale.

Also, I don't know if AC were allowed more large RJ's flown by regionals by putting E190's in the fleet, but that's exactly how they ended up at US (and subsequently AA).
 
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 2:09 pm

LCDFlight wrote:
It amazes me how carriers quickly wanted to dump the E190. Despite the current demand environment. Maybe it is the cheapest thing to dump (write down the least amount of scarce money).

CF-34-10 engine overhauls are expensive. Part of the reason JetBlue is replacing the type is engine maintenance costs:
https://www.bloomberg.com/news/articles ... st-problem

We had a discussion 2 years ago on the E-190. viewtopic.php?f=3&t=1403321

Back then 92% of the E-190 were flying vs. 96% of the E170/175. Today that is 88% for the E190/195
https://www.airfleets.net/exploit/production-e190.htm

94% for the E170/E175 https://www.airfleets.net/exploit/production-e170.htm

That tells us the E190 are aging out at twice the rate of the smaller Embraer. It just isn't in demand.

AA has also officially retired the type:

https://www.nasdaq.com/articles/5-aircr ... -05-01?amp

JetBlue has an earnings report 5/7, the status of the E190 will be of interest to myself:

http://mediaroom.jetblue.com/investor-r ... -212931887


In today's dirt cheap fuel environment, maintenance costs really matter.

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tofur
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 2:18 pm

[quote="beechnut". No mention about what Rouge will do without 767s, if those indeed are included in the 79 retirements.

Listening to the question and answer session, indeed the Rouge 767's will be retired. They said going forward, Rouge would be a narrowbody operation. Any former leisure widebody routes would be operated by Air Canada mainline 77W HD aircraft and 330 aircraft.
 
KlimaBXsst
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 2:22 pm

Unless one has a crystal internet airline reservations ball with trending data...

Hope is just that! But wait airlines do have a CRYSTAL INTERNET RESERVATIONS BALL with trending data.

Folks you are being AI predictability tracked by google, Amazon, airlines and such. WE know how many rolls of toilet paper you are going to buy in 2021, so we shall constrain the market place and supply so we may charge more.

Don’t doubt airline Vice Presidents maybe!
Aesthetically the A 340 got it right!
 
Whiteguy
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 2:27 pm

chonetsao wrote:
Air Canada needs to renew their fleet very soon. Even with these 79 aircrafts gone, there are still many that are approaching or over the magic 20 years in service landmark.


What do you think they’ve been doing with A220s and MAXs??
 
jeffrey0032j
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 2:28 pm

Guess Amazon and/or CAM will be interested in some of Rouge's 767s. More choice for them with AA and AC offloading their 767s.
 
PlymSpotter
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 2:37 pm

enplaned wrote:
LCDFlight wrote:
It amazes me how carriers quickly wanted to dump the E190. Despite the current demand environment. Maybe it is the cheapest thing to dump (write down the least amount of scarce money).


Rule of thumb - E190s have approximately the trip cost of an A319 with many fewer seats.

Yes, that's not good.


No, you are confusing trip costs with seat costs.

The trip costs of an E190 are substantially less than an A319, however the seat costs are broadly similar due to the lower capacity.
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Varsity1
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 2:53 pm

PlymSpotter wrote:
enplaned wrote:
LCDFlight wrote:
It amazes me how carriers quickly wanted to dump the E190. Despite the current demand environment. Maybe it is the cheapest thing to dump (write down the least amount of scarce money).


Rule of thumb - E190s have approximately the trip cost of an A319 with many fewer seats.

Yes, that's not good.


No, you are confusing trip costs with seat costs.

The trip costs of an E190 are substantially less than an A319, however the seat costs are broadly similar due to the lower capacity.



Nope. He's correct. E190 costs about the same per hour as an A319. Fuel costs are slightly lower, maintenance costs are higher on the E190.
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beechnut
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 2:59 pm

Whiteguy wrote:
chonetsao wrote:
What do you think they’ve been doing with A220s and MAXs??


Flying the A220s and parking the MAXs.

Beech
 
mcg
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 3:00 pm

Razza92 wrote:
Wonder what this will mean for AC Rouge’s long haul destinations such as in the U.K.? Will these be taken over by mainline or canned completely. Interesting times ahead.


I had a Rouge flight Zagreb - Toronto in September that was cancelled a month or so ago.
 
raylee67
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 3:02 pm

beechnut wrote:
Besides the 79 retirements, a few interesting things and omissions from the report (management discussion and analysis here: https://www.aircanada.com/content/dam/a ... MDA_q1.pdf).

It doesn't sound like the A220 deliveries are being deferred. They are still stating a target of 14 aircraft delivered in 2020.



The E190 can be eliminated immediately because they are not flying now anyway. The A220 is ordered to primarily replace the E190. If AC indeed expects travel to recover more-or-less by Christmas of 2020, then the A220 will be needed in 2020. The gap of capacity between the immediate retirement of E190 and gradual delivery of A220 will just be between now and whenever the A220s start to be delivered one by one.

A220s will not be delivered when the lock down is in place, so the timing of deliveries can actually align pretty well with the progressive re-introduction of flights.

Note that this would only work out if the initial assumption from AC's management on Christmas recover turns out to be true.
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SpaceshipDC10
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 3:03 pm

jeffrey0032j wrote:
Guess Amazon and/or CAM will be interested in some of Rouge's 767s. More choice for them with AA and AC offloading their 767s.


With an average age of 23, some are in their late 20s early 30s, I guess these could be acquired cheaply.

https://www.planespotters.net/airline/Air-Canada-Rouge
 
raylee67
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 3:06 pm

Whiteguy wrote:
What do you think they’ve been doing with A220s and MAXs??


Whatever AC's plan is for the MAX, they (and all other airlines) which have been knocking on Boeing's doors chasing Boeing on MAX deliveries will for sure not chase after Boeing any more. And imagine the horror for the airlines' CEOs if Boeing starts knocking on their doors a few months from now telling them the "good" news that the MAX that they have been chasing for so long will finally be delivered to them soon. :D
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SpaceshipDC10
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 3:10 pm

Dominion301 wrote:
My guess is TS will become the new Rouge and Rouge will be gone for good.


I tend to think that too. Keeping the brand could have a good impact on their current regular flyers and in Québec. However, would they keep the current tight configurations?
 
whywhyzee
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 3:16 pm

I like the strategy, considering it'll take a few years until demand returns to pre covid levels, essentially all of the frames in that retirement list would have been due to go anyhow, no sense keeping them on property to sit or fly around empty. The bulk of the 767s are still highly valuable as potential freighters, about 10 of the 30 are ~30 years old and will likely see the axe, but the remainders are a fair bit younger and should still have a lot of life left, which can help the bottom line if sold for conversions.

Moving forward, it's going to be incredibly easy to procure lightly used frames, especially things like A333s, which AC can easily decide to buy more of when demand picks up. There are also new aircraft options they can take, with steep discounts to be expected. This move they have made bought them a lot of flexibility.
 
enplaned
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 3:21 pm

PlymSpotter wrote:
enplaned wrote:
LCDFlight wrote:
It amazes me how carriers quickly wanted to dump the E190. Despite the current demand environment. Maybe it is the cheapest thing to dump (write down the least amount of scarce money).


Rule of thumb - E190s have approximately the trip cost of an A319 with many fewer seats.

Yes, that's not good.


No, you are confusing trip costs with seat costs.

The trip costs of an E190 are substantially less than an A319, however the seat costs are broadly similar due to the lower capacity.


Not confusing the two. Worked for an airline that had them both. That rule of thumb was a painful realization. Your mileage may vary, but that was our experience.
 
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Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 3:26 pm

raylee67 wrote:
The E190 can be eliminated immediately because they are not flying now anyway. The A220 is ordered to primarily replace the E190. If AC indeed expects travel to recover more-or-less by Christmas of 2020, then the A220 will be needed in 2020. The gap of capacity between the immediate retirement of E190 and gradual delivery of A220 will just be between now and whenever the A220s start to be delivered one by one.

A220s will not be delivered when the lock down is in place, so the timing of deliveries can actually align pretty well with the progressive re-introduction of flights.

Note that this would only work out if the initial assumption from AC's management on Christmas recover turns out to be true.

The other thread has been updated: the CEO says traffic rebound will take three years.

Of course this is not uniform so I think A220s will still be taken and 767s will still be retired.

I think the traffic will rebound domestically first since border crossings will be restricted.

I think the market that Rogue International served is not going to rebound for a long time so I think retiring 767 makes sense.

raylee67 wrote:
Whatever AC's plan is for the MAX, they (and all other airlines) which have been knocking on Boeing's doors chasing Boeing on MAX deliveries will for sure not chase after Boeing any more. And imagine the horror for the airlines' CEOs if Boeing starts knocking on their doors a few months from now telling them the "good" news that the MAX that they have been chasing for so long will finally be delivered to them soon. :D

Yet that is what will happen at some point in the not too distant future.

#18 above says AC has signed its deal for MAX compensation, and it will take the form of discounts on MAX purchases, and this has been reflected in Q4/19 and Q1/20 results.

It will be hard to reverse that agreement.
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airzona11
Posts: 1741
Joined: Wed Dec 17, 2014 5:44 am

Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 3:27 pm

Seems like another airline that will use this to shed unfavorable business units/operations. While Covid shut down is impacting, there is no way Rogue was long term part of the plan or profitable if they are axing it. With TS in house, they have further redundancy to do so.

Seems like a bad proposition for consumers, losing competition via mergers (pricing pressure), providing government (taxpayer) assistance during the downturn, and now capacity permanently being reduced, further raising prices.
 
morrisond
Posts: 2660
Joined: Thu Jan 07, 2010 12:22 am

Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 3:27 pm

I can also see all mainline A330's transferring to Rouge to replace the 763's. They won't need them at Mainline in the new reality of post Covid flying.
 
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enilria
Posts: 10179
Joined: Fri Feb 22, 2008 7:15 pm

Air Canada to Cut Capacity 75% July-September

Mon May 04, 2020 3:36 pm

This is first airline to announce 3Q capacity cuts, and much deeper than expected. It is also likely they did not include blocked middle seats which would mean it is closer to 80%. I actually think they are going too far. I hope the Big 4 U.S. carriers do not follow.

as the carrier warned third-quarter capacity would slump about 75%

https://www.reuters.com/article/us-air- ... SKBN22G13B
Last edited by enilria on Mon May 04, 2020 4:04 pm, edited 1 time in total.
 
9252fly
Posts: 1000
Joined: Thu Sep 22, 2005 7:19 am

Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 3:43 pm

morrisond wrote:
I can also see all mainline A330's transferring to Rouge to replace the 763's. They won't need them at Mainline in the new reality of post Covid flying.


As already noted above AC mainline will be operating wide-bodies to replace whatever routes that remain that were once flown by Rouge, leaving them with about 20 A321s and 320s. If the Air Transat deal gets consummated, I'm reasonably confident Rouge will disappear and the remnants will be folded into the new leisure airline.

For AC mainline it appears the plan for the narrow-body future fleet will revolve around the 50 MAX8s, 45 A223s and however many A321s get consolidated from the different units.
 
9252fly
Posts: 1000
Joined: Thu Sep 22, 2005 7:19 am

Re: Air Canada to Cut Capacity 75% July-September

Mon May 04, 2020 3:52 pm

Ouch! I'm entirely surprised at the significant reduction in capacity. Reading the Reuters link in your post is sobering and gives a sense of how bad forward bookings have been for the 3Q. No sense flying with excessive capacity that exceeds demand to only further exacerbate further losses.
 
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ACCS300
Posts: 569
Joined: Thu Jun 16, 2016 4:05 pm

Re: Air Canada to Cut Capacity 75% July-September

Mon May 04, 2020 3:58 pm

One of the issues here in Canada is that we have inter-provincial travel restrictions. All provinces require a 14 day isolation even if travelling from another province so domestic travel is likely affected to a greater degree than in the US.
 
slcdeltarumd11
Posts: 4694
Joined: Fri Jan 09, 2004 7:30 am

Re: Air Canada to Cut Capacity 75% July-September

Mon May 04, 2020 4:00 pm

All airlines will follow and much more coming. Alot don't want to issue cancellations because that floods their refund department and kills their cash.

No one wants to get on a plane, all of 2020 until holiday Thanksgiving I think is lost. Business can't and won't do business travel and that is alot where the money is.
 
DLASFlyer
Posts: 114
Joined: Wed Jun 15, 2016 4:06 pm

Re: Air Canada announced for Q1 2020 a $1.05B loss + retirement of 79 older aircraft

Mon May 04, 2020 4:02 pm

Are any of the 319s new enough to be picked up by other airlines? I know UA is adding used 319s, what about Delta?

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