Air Canada needs cash to survive global recession

Air Canada has announced a revised flight plan as it tries to weather a financial crisis. The country's largest airline admits poor customer service has driven away some passengers. So, it's planning an approach that could be described as 'back to the future.'

CTV Newsnet: BNN's Michael Hainsworth with the headlines

A look at the business stories making headlines on Friday, May 8, 2009.

CTV Newsnet: Karl Moore, McGill University, on Air Canada's troubles

Air Canada is reporting huge losses, with falling passenger numbers and greater competition being big factors in the problems at this point.

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CTV.ca News Staff

Date: Friday May. 8, 2009 4:43 PM ET

Air Canada needs to borrow more money to help it survive the global recession, the airline's chief executive officer said Friday.

"Even after the airline's success in raising $641 million last year in the midst of the tightest global credit markets in living memory, we will have to raise more financing," Calin Rovinescu told shareholders at the company's annual meeting in Montreal.

Rovinescu made the comments after the carrier announced that its first-quarter loss widened by 39 per cent.

The Montreal-based airline said slumping passenger revenue contributed to the $400-million first-quarter loss, compared to a $288 million first-quarter loss last year.

As air traffic fell by 10.9 per cent, operating revenue dropped to $2.39 billion from $2.73 billion.

Rovinescu, who replaced Montie Brewer as CEO on April 1, said he expected more difficult months ahead, but expressed guarded optimism that "the global economy will inevitably rebound," at some point.

Air Canada's stock price, which nearly doubled earlier this week, fell 23 per cent Friday afternoon on renewed concerns about the airline's lack of cash, pension deficit and labour strife.

As Air Canada's six-year labour contracts expire May 31 and June 30, the airline is seeking concessions from its unions and pension relief from Ottawa. The pension deficit is $2.85 billion.

Rovinescu said the carrier still has many options open, emphasizing that it's too soon to talk about another filing for bankruptcy protection and layoffs.

In addition, Rovinescu noted a drop in fuel prices had given the airline some financial relief.

Still, Air Canada needs up to $1.3-billion by the end of June to avoid breaching credit covenants.

"The corporation is currently renegotiating certain terms and conditions, including relating to triggering events, with the credit-card processing company," Air Canada said in the statement.

ACE Aviation Holdings Inc. (ACE.A-T), created in 2004 after the airline exited bankruptcy protection, owns 75 per cent of Air Canada.

ACE had $373-million in cash at the end of April and has been seeking to liquidate its assets ever since.

Air Canada's unions have been pressing ACE to use the remaining cash to help pay down the airline's pension deficit, instead of giving the money to ACE shareholders.

Rovinescu said to solve the company's financial problems, Air Canada must attract more customers.

"We think that the customer needs to be re-engaged," he said. "We know what our competition is doing and frankly we have to do a better job for our customer to re-engage with him."

With files from Canadian Press

Comments are now closed for this story

Raj
said
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Who is looking after AC.It hasn't worked for some time.I hope they don't need more money, it is not right. I fly Westjet, they are so nice to deal with. AC think they own the sky, and have treated us as if they do.

Wade Ens
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Everybody is flying West Jet

Loyal to AC
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I do not fly Westjet. I needed to catch a cruise and our travel agent booked us on Wstjet. WE arrived to find our flight cancelled. Westjet does not belong to IATA, so we were left to our own means to fly to Florida to catch our cruise.

Because of this poor service, never again with they receive a dime from us. Westjet also lost a cousin of mines child. She managed to get off the plane with a total stranger. THATS GOOD SERVICE??? Open your eyes folks. Westjet just does not make the news when they do wrong.

How many of you know that Jazz does around as many flights a day as Westjet??

I am now and always will be a cusotmer of AC. More flight options, and after the web fares, its usually about 15 bucks cheaper than Westjet.

SO folks spend your money where you want. But mine is with a company that serves all of Canada.

PVT
said
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I have a great idea - let's prop them up again with yet another tax payer funded bailout! We've done it before for AC and Bombardier and we're doing it with the auto sector. After all, money does grow on trees - right?

James Crowley - Calgary
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An old military slogan used to say "Results, not excuses!" and unfortunately Air Canada's motto is the exact opposite. Westjet faces the same exactly the same economic conditions as any other corporation and can still make money. Air Canada and many other corporations no doubt are asking "Why?".

Some of the answer lies in my own travel decisions. I'm riding Westjet in preference to Air Canada tonight because of better service, better employee attitudes and a far higher level of concern for their customer base and not because the price was any lower, it was the same. As a customer and very frequent flyer, I feel Westjet is there to please me and not the converse as I all too often feel when I do ride Air Canada out of necessity.

If even half of what Air Canada has spent to date on outrageous executive compensation packages had been directed towards improving customer service and particularly employee morale, I do not think they would be in the position they find themselves as a corporation today. Customers do have a choice and long may that be the case!

I truly hope Mr. Rovinescu does succeed but given a reputation for a slash and burn approach towards personnel, management and overall cost-cutting, I am not optimistic.

Robert
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I only fly Air Canada.. It is our Naional air carrier. We all should be proud of our air carrier.. WestJet is cheap with no class.

Mike Ottawa
said
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Really? AC, Really, you're surprised by a downturn in your profit margin?

Customer service could be part of the problem.

When you run a company and act like the customers don’t matter because you know you will get a bailout, that reflects on return business…

Jan North Van
said
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A C has always been a poorly run company addicted to Federal Tax dollars. If they had spent half as much time a few years back, actually running the company, as they did trying to smash the competition they wouldn't be in this fix. They do not know the meaning of the word customer service. On a local flight last summer altho I was in line over 1 and 1/2 hours before a LOCAL flight was due to leave I initially told at the ticket counter I could not board because the flight gate was closed. They had 2 staff trying to check in about 400 people. Eventually got on and of course sat on tarmac for 20 minutes. Bags didn't make it though.

PeterS
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Wade: Unfortunately not every city in Canada has West Jet. If AC goes under what do we do?

Jim Reed
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We fly Westjet and yes they serve the people, not look down their noses at you, or something they (the air canada people) stepped in. I worked for Canadian Pacafic Airlines many years ago and even then air canada was a bunch of s.o.b.'s

BESS
said
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Even when the global economy does rebound, air faires are still to highly priced. It is more expensive for me to travel to Toronto from Halifax, than to the Dominican.

I hope this slump in revenue doesn't also mean a slump in the airline maintenance department.

Tim
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Porter is excellent...

Paul from Edmonton
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I have traveled " Waste Jet" twice and each time the service was " less than desirable". Air Canada needs to bring back " full meal service" now that would make a difference.

Brian
said
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Same old story, overgrown their market. They do not have the structure to compete with WestJet and other low cost carriers, so why bother. Their fares are ridiculous as well, $5000 for a business class seat from Vancouver to Toronto return? I can fly business to London cheaper.

Heather Meiklejohn
said
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The economy has nothing to do with Air Canada's losses.
Fact is they simply do not care.
The amount of luggage that they lost during Christmas this year was disgraceful. They closed their phone lines and just left the luggage piled up in the airports. They are rude, arogant and unprofessional. I too will only fly westjet. At least when something happens, they take responsibility for it. They also put the customers first.

Philip
said
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I took Sunwings for the first time about half a year ago - it was about the same price as a train or bus, and it was a new plane. I hope that they stay in business. They deserve an A for effort. I never fly with expensive national carriers, except Lufthansa which is reasonably priced.

David P
said
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Air Canada (Jazz) is the only airline that has ever lost my carry-on. They also have staff that are singularly unhelpful - like the time their delays left me with 45 minutes to clear customs in Montreal and catch a connection; on being informed, their staff said "Oh, we can't do anything."

Now, as they circle the drain all I can say is, "Westjet and Porter, thank you!"

Vern AAFU Oshawa spokesman
said
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Once again, another large company, that, at the end of the year is left scratching their head and saying "we've lost alot of money...How?" Look within Air Canada!!! WestJet is a much better company and more competitive price wise. At least they don't have their hand out (like the auto sector) yet!! What's next...

PhDNale
said
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Air Canada is a shame to our nation! They deserve to go bankrupt! They have the worst customer service and are 100% unreliable!

Leonard
said
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It is partly due to their awful customer service.

CA, Middle East
said
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As a Canadian living overseas, I hope AC continues to survive as West Jet doesn't code share with any international carriers and my only option is AC as other international carriers don't fly to the East Coast city I go to. If AC goes, my only choice would be to fly via the US-- their security measures means having to haul my bags off, go through customs/immigration, re-check my bags, go through security again-- just to catch a connecting flight. Very time consuming and unnecessary.

Mel from Calgary
said
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When Air Canada was a crown corporation it only had three years where it didn't make a profit (paid to the federal coffers)

It had a lot of competetion, CP Air, Eastern Provincial, PWA, Air Quebec...

Then privatisation and deregulation were going to make things better, now we have very little competition, fewer airlines with less well paying jobs and the experience for passengers is misery.

Sea_Fish
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To "Loyal to AC"

Westjet does belong to IATA, with IATA reservation code "WS".

To "PeterS"

You should not need to worry if AC goes under. First, you will still be able to fly on Jazz, which is a regional airlines independent of Air Canada. Second, with a glut of unused airplanes parked in the desert, Westjet and foreign airlines can easily fill the vacuum.

VIV
said
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Who flyes AC these days? Their price policy forcing people to use Buffalo instead. 100s dollars in savings for a short trip. 78% of all cars parked at Buffalo airport have canadian license plates. That's an official info.

Anne
said
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Well, when it costs more to fly to Winnipeg than it does to Europe - who can affort to fly AC.

No more AC
said
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I have used Air Canada and it's partners to fly to Europe. From Montreal to Toronto a bunch of crabby, moody service. From Toronto to Germany on Lufthansa a charm with the friendliest service. Air Canada is in trouble, boo-hoo.

Jason, A Proud ticket paying Westjetter!
said
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Boy, th comments that Air Canada is a far better airline then WestJet.... are completely false and very much misleading. You all can claim that Westjet is horrible, doesn't fly to all cities but one thing Westjet cares about is its employees and passangers. The Slogan, Because were owners is a direct difference to the AC model. Westjet is owned by its employees, they recieve shares in the company, dividends, and profit sharing... does Air Canada do that???
Westjet's model is no frills, a smile on your face and being polite to the customer while keeping them safe. As Westjet expands to compete head on with AC and Transat, the french airlines complain just like Quebecers do about seperating. Let them go and let Air Canada go with Quebec! Westjet has proven time and time again, they are the airline of choice for Canadians, and most USA passangers. Westjet posted a Profit in the first quarter, Air Canada, is ready for bankrupcy protection again as it bleeds taxpaper dollars day after day. Not to mention, Westjet has the newest fleet of aircraft in the world, they do not charge extra for bags, they have live seat back TV on almost every flight, there change fee is $50 rather then $75 or higher for AC.. Last, westjet hardly EVER looses your bags! Congratulations Westjet on a great job, a wonderful company model and for being customer focused and friendly. I like calling the call centre to know its FREE to book with Westjet rather then we hate everything about you Air Canada and its model! And just so you know, I do NOT ork for Westjet, but do fly them about 5 times a month!

ex-Canadian
said
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AC does not deserve to survive. I fly 30 plus times a year and by far, this is the poorest airline in the western world. Service is non-existant, and their attitude is appalling. From dealing with their ticket agents, through to check-in, in-flight "service" and arrival agents, I cannot tell you how much I hope they disappear.

M from Halifax
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In the last 3 months I used Air Canada 3 times, including my trip to London (UK). The flights were always full 100%. They are still charging $ 300 fuel surcharge for their international flights. Plus additional money for all their extra services, such as food, headphones, drinks, etc. The cost cutting starts at home first. Rather than increasing ticket price and fuel surcharge start cutting employee benefits such as: Free flights to employees and to their family, start flying employees in economy class and provide business class seats to paid customers. Air Canada should also offer last minutes seat sales to customers.

Jason
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As a frequent flyer between Florida and Ottawa, let me tell you precisely why Air Canada is flying empty. It isn't the economy. It is because each time I check fares, AC comes in around $685 one way and I can book passage on other carriers for under $300.

Easy choice not to fly AC given those price differentials. Unless and until AC becomes competitive on the routes they fly, they are most certainly going to be flying 3/4 empty. At a time when everyone's pocketbook is struggling, who in their right mind would pay double the rate for similar service just to "fly Canadian"?

Common Sense
said
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Robert said: "I only fly Air Canada.. It is our Naional air carrier. We all should be proud of our air carrier.. WestJet is cheap with no class."

The last time I checked, WestJet was flying nationally, Victoria to St. John's and up to Yellowknife.

I am proud of WestJet as our national carrier. If I need to go internationally, I'll fly Lufthansa or British Airways.

You're right! WestJet is cheap (though I'd probably say 'cost effective') And yes! it has no class, by that I'm guessing you mean class structure like AC. If I'm not some hoity toity snob in business class, then I am treated like I was found under a rock.

Jack Russell
said
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Here we go again with another round of Air Canada bashing. It is not completely fair to compare WestJet to Air Canada. With AC, the government still has it's fingers in the pot. Air Canada has no choice to fly to remote portions of the country. As another person correctly said, WestJet doesn't fly everywhere. What would happen then? AC does not have a choice in many locations, and if they are money losers, not much you can do in those instances. Also, it has to operate in both official languages, WestJet does not to my knowledge. (Correct me if I am wrong.)

Everyone always wants to take a shot at AC. Both WestJet and AC are good airlines. Each has success and horror stories.

The bigger picture here is that if AC were to ever go under, ALL people who use air travel in Canada would suffer in one fashion or another. It is essential to keep BOTH WestJet and AC viable.

Chris.
said
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As for the poor customer service with Air Canada, blame that on the management and peop[le higher up the chain. They have taken so much crap and have given up so much. I know it's unfair to pass that on to the customers but that is there only course of action.
Did you know that the starting pay rate for a Station attendant in Ottawa is $10.85/hr these are the people that load your bags, clean the aircraft and work the flight in and out. Your only going to get what you pay for.
just wait until Westjet has to start paying their pilots and flight attendant more and they will be running into the same problems that AC is in.
Don't blame the people that that work for pennies for the problems, voice your complaints with the people that make the decisions!!

Jon D
said
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Since Air Canada became a private company in 1989, it has never received a tax payer bailout or any kind of government funding. For those of you who think it has, please provide a date and a reference! I dare you.

To Sea-Fish: No WestJet is not a member of IATA. Please go to the IATA website and you will see for yourself.

Jason: Air Canada offers 2 free bags, the same as WestJet.

You people need to get your facts straight.

Joe Vancouver
said
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I fly for business over 35 times per year - internationally and domestic. For domestic, I hate flying AC, they are over priced, have bad service and are never on time. If I can, I will always fly WJ. For International, the service is better on the plane but the line ups at their counters always stink when in Canada.

AC is always more expensive.

No tax money for them - get your crap together and put forward a decent product and fire the grumpy staff!

Ganesh from Markham, Ontario
said
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Air Canada's in flight service is no good at all.

West Jet is a little more cheaper compare to Air Canada

Steve the Pundit
said
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WestJet from the very beginning adapted a proven business model: keep things simple (one type of plane, no meals), treat your customers with respect and involve your employees. It's the reason WestJet has continued to expand over the years and, for the most part, has been profitable throughout.

Air Canada flies multiple aircraft types (complicated for maintenance), tried to be a premium all-in airline and, when that didn't work, opted to charge for everything (soon to include Fresh Air, no doubt). And service? In over 20 years of flying I can't think of a flight where the service was anything other than an imitation of Soviet "Aeroflot".

Don't save A/C; if they go down, innovative airlines like WestJet and Porter will fill in the missing gaps.

In the meantime, maybe some new marketing slogans for A/C might help:

"We loathe to fly, and it shows"
or...
"At Air Canada, WE'RE not happy until YOU'RE not happy!"

Only as good as the foundation
said
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Air Canada got of on the wrong footing as a government airline and has always suffered ever since. Governments are simply inept at doing what free enterprise can do which is why less government is always better for the people.

Ed from Nanaimo
said
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Everyone better hope that Air Canada makes it cause without any competition do you honestly think Westjet will be having seat sales then? Yah, right!
And if we don't have a national carrier we're going to look like a third world country. As someone else mentioned, Westjet does not fly to everywhere in Canada like AC does. There are tons of cities that Westjet doesn't service. What then?

RK
said
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We should have let Air Canada die the last time they needed a bail out. Their employees are rude and their customer service is non-existant. RIP Air Canada... no more money for you!

Travellin Man...
said
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I fly between Calgary and Toronto weekly...I can't believe the difference in the A/C fare over Westjet's. Next week flying between the 2 cities has a $1600.00 difference in round trip cost!!! Air Canada clearly hasn't figured out the idea that there's this thing called the "internet" where you can actually see the differences in the price.....

ACYWSN
said
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I'm a proud Canadian and when I travel, I'm always proud to see the Maple Leaf on the tail of the aircraft. I have always received excellent service on Air Canada. People always have a high expectation when they pay for anything especially travelling. I've flown on Westjet once, and only once it will be. They pride themselves on customer service. I have seen little of it. I dealt with a disaster last winter flying on Westjet. They provided pizza for passengers standing in the line, until the TV camera's left!! They are sly with media. Did anybody hear about the incident when a flight arrived from Florida? Passengers bought food on board and ended up with food poisoning??? NOPE!!!

AC HORROR STORY
said
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I traveled with Air Canada a few years ago with my grandmother who is in a wheel chair.

We contacted the airline months before our flight about making arrangements for special bording. And asked for lots of time between our plane transfer in Montreal.

They managed to screw our flight up, putting us on one that had 10 minutes to make the transfer in Montreal.

When the flight attendent who was assigned to help us in Montreal met us and saw that we missed the connection. She had the nerve to raise her voice to me for scheduling the flights so closely.(embarassing)

Maybe she thought she could get away with it because I was 18. And my poor grandmother, who can't speak clearly due to a stroke, was simply furious, and we all heard her that day.

They bumped us to first class but it wasn't worth the aggrevation.

Sea_Fish
said
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If CTV viewers read Air Canada's 2009 1st quarter financial result, you'll realize that the number is very, very bad. AC's operating loss, 188 million, is thrice as large as Continental Airlines, even though Continental is 50% larger. More important, AC has only 1 billion of cash on hand, enough for 1 month of expense only.

If AC's union workers decide to go on strike during summer. It could be the end of AC as we know it.

I.Mitchell
said
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Air Canada is once again in financial dificulty and yet they have 3 new commercials running on Prime time this just does not make sense and I am sure others have noticed this, Air Canada is Canadian owned right ? Why are all the people in the ads Asian ??Just wondering.
Mrd.I.Mitchell, North york

Steve
said
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Maybe if they provided cheaper flights, people would be more interested in flying. Even though many people are in tough times right now, there are still some that have money to spend, they just don't want to throw it away. But lets get to the point of this article. Someone is getting ready to pony up for more government handouts...again.

AC is CRAP
said
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I hate AC. They care NOTHING about their passengers. Their service is not even existent to rate! Crappy crappy crappy.
West jet, though not the best in the lot, they attend to queries. they gave me a credit. You think AC would do that? With AC u r on ur own. U probably have to know the Airline charter of rights so that you can get ur money back. Or hire a damn expensive lawyer. Hope they tumble down to humility and start properly.

JB in Ontario
said
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Just the same, we need Air Canada and it would be more enjoyable if all the airport taxes were combined instead of being nickeled and dimed. Costs continue to rise for air travel but the competition with other good national airlines will keep the fares at par with inflation.

andre
said
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There is something very wrong with AC when their business model relies on fuel surchages of almost 50% of the price of the ticket in many cases, even now that the price of oil is less than 50% of what it was at its highest point.
How incompetent can management be when the new chairman basically is waiting for the world economy to turn around so AC can start making money!!!!
I think the whole management team has to go and truly competent people who believe in competition and free market!

Sandra
said
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Anne says on Air Canada it costs more to fly to Winnipeg than to Europe. That tells me nothing. A point of origin would be nice in order to compare. For example, is she talking Vancouver or St. John's?

jeff in brampton
said
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Air Canada is an odd airline. First of all their rates are really crazy. I fly often and have seen flights to Europe and Aisa cheaper than to Rochester, NY or Boston. Or one flight to Florida will be a great value but the next one will be almost $1500. Second, I have read that the employees are not very friendly. Well the way I feel is if you and your luggage make it there safely then what the heck do we have to complain about.

AH
said
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I don't fly West Jet or Air Canada because both of their prices are ridiculous! Take a look south of the border at the discount airlines... Catch a Spirit Air sale at the right time and you can fly from Detroit to Florida for $150 roundtrip with taxes included! To fly the equivalent distance in our own country, say Toronto to Halifax would cost you at least 4-5x that at best.... maybe I would spend more money in our own economy travelling within Canada if it didn't cost me my life savings!

pete26
said
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Hey ACYWSN, clearly you haven't been dropped off on the tarmac in -30C weather like I and my family was by AC in Edmonton last winter. Westjet is the only way to "fly". I have flown to Phoenix 5 times this winter, I used AC once as mentioned above, US Aiways once, and Westjet the others. Westjet by far is the best overall, and if your lucky you can watch a hockey game!

Joe
said
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I flew Air Canada for my honeymoon because it was the only choice to the Dominican Republic at the time we went. I flew Westjet for business purposes. I will never fly AC again. Even though we purchased two seats, we were told the flight was overbooked and we had to wait. Once on the plance customer service was rude and everything was over priced. 10 bucks for a measly slice of ham and stale bread. $8.50 for a Coors Light. AC thinks it owns the skies.

Sea_Fish
said
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To "Jon D"

The member list at IATA website is not comprehentive. It only list member airlines with substantial international service. Therefore, you won't find Westjet, as well as Southwest, Ryanair, or AirAsia on the list. It does not mean they are not IATA member. All these airlines do has IATA code and IATA accounting #.

Clippy
said
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They are still making money..Im sure these numbers are compaired to last years earnings just like every other company does.So a loss yes,but money is still being made..

A Left-Leaning Albertan
said
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Regardless, I'm sure taxpayers will be bailing Air Canada out, they are a Montreal-based company after all. Of course, anything not Quebec-based, like the old Canadian Airlines, the federal government ignores.

Dave
said
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What Air Canada doesn't tell the public is that they regularly dole out huge bonus checks to the executives at the top, and continually spend millions of dollars on unnecessary upgrades (e.g. new uniforms, new paint jobs on planes and buildings), all while cutting back on services and threatening employees to take a cut on their wages or lose their jobs. Maybe if the executives set an example and reduced their own salaries and bonuses, employee morale wouldn't be as low as it is, and airline staff would treat their customers better. There is no reason for the executives to get bonuses if the airline is doing poorly. Stop wasting money, treat your employees and customers better, and you'll have an airline that people will be proud to support, instead of the embarrassing mess it is now.

Julien
said
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GO WEST JET GO!!!!!

Barry in Ottawa
said
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Dont care about Air Canada... I use to fly them .. but now I Fly West Jet, there crews are nice and greet you with a smile... Not the RUDE Air Canada Crews... Let the airline die.. if there not courteous and competitive isnt that what is suppose to happen in the business world ?... I'm SOOOOOOOO sick of hearing about Air Canada's problems....

Chasdf
said
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An Aeroplan Member since 1986 and a very disappointed one. Air Canada doesn't get it and probably won't until three more bankruptcies. It is simple really, you are not a Crown Corporation, treat the customers better. They have a disgusting corporate culture of arrogance and complancency. It is time we let them go bankrupt and get a new improved flag carrier for Canada! We are Canadians and we can do better (we used to with Canadian Airlines and Wardair actually!)

frequent flier, NT
said
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No.. not everyone is flying West Jet. Compared to Air Canada they have FAR FEWER flights, and FAR FEWER destinations/deaprture gates. And in the last two years, I have yet to find a flight on West Jet that is cheaper than Air Canada. When they started it seemed great, now it looks like they only want to service PARTS of Canada and the US. Not good enough for those who do not live in a major Canadian city.

Aaron in Toronto
said
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I do not hate AC per say but they do have their fair share of customer issue. A few points that I want to enlight some viewer over here:

1) Any company that involve customers would always has complaint, yes WestJet and Porter also have grumpy passenger.

2) Air Canada put a lot of effort to place the ads in Asia due to marketing. On a daily basis the flight to and from Asian is 90% full unlike domestic flight.

3) Not sure if people forget part of the deal from the Federal Gov't to approve the merger between CP and AC is that they must continue to provide regular service for remote area or rural area so they continue to take a hugh loss in these routes.

4) Senior management keeps cutting wages and benefits to their workers. Think about it, would I be concern about your travelling experience when I am contantly have to worry whether I will have a job after I serve you?

5) They failed to realize this is the information age where people need a few minutes to jump from one website to the other and see the price difference. I challenge everyone to spend a few minute to see for yourself how easy you can check the price.

Regardless of how much you hate AC, we still need them in Canada. I hope the new CEO would focus more on the customers than anything as they need to completely remodel their business practice.

rick cinway
said
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And let's not forget Jack Russell:

Because of the Air Canada Act, Air Canada is forced to pay big time for compliance to official bilingualism decrees, e.g company manuals in French and English.

Also, if you are a uni-lingual anglophone, you are shut out of a job as a flight attendant. These are examples of hoops that Air Canada has to operate in that West Jet is not encumbered with. Another, proportionately to their respective fleet sizes, Air Canada has a lot more Ground staff on the company payroll than does West Jet. Another point, some commentators have said that Air Canada has received bailouts. When were these bailouts and how much were they? True, Air Canada was forced to "merge" with Canadian Airlines by Federal Transport minister, David Collenette and the Liberal government - don't forget that an upcoming federal election at the time could have been a factor during merger negotiations. But I am not aware of any time since the privatization of Air Canada, that Air Canada has received any federal monies. I do know however, that Air Canada, as with other airlines pay huge amounts of landings fees to airport authorities, like the Vancouver Airport Authority for instance, who are supposed to be non-profit by the way. But to which doesn't stop the Vancouver Airport from taking their excess departure tax wealth and investing it in other international airports. No, no, once the airport renovations were completed, then the departure taxes were to be lifted. People, if you want to slag Air Canada - fine. But don't blame everything on Air Canada and its employees. That is all I ask.

signed, AC employee