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Drew McCarthy Air Canada needs deep restructuring: analyst
Written by Drew McCarthy   
Jacques Kavafian of Research Capital said today that Air Canada needs to undergo a more severe restructuring than previously anticipated to respond to a worsening outlook for the airline industry this fall.

He added that that means costs have to be cut by at least 25 per cent just to break even.

What do you make of all this?


See CBC news for story





COMMENTS

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Written by Etienne Sepulchre (Jr.) on 2009-07-22 13:48:50
I did see the Air Canada article through the Bourque.com portal earlier this morning. My immediate reaction was a fear that the unions that very recently ratified new collective agreements with Air Canada might feel let down, if not outright betrayed. 
 
One must know the long history of endless compromises Air Canada employees' unions have made, especially since the 9/11 air traffic drop, while witnessing their airline (yes, THEIR airline!) selling off assets under the previous CEO, in order to really understand their position. 
 
Let's hope my fear is unfounded and that unions are confident as ever about Air Canada's future as when they finally ratified their collective agreements to give management more financial maneuvering room. 
 
A lot of people in aviation and other industries in Canada are tired of the kind of language our Prime Minister loves to use to cover his tracks: "I didn't see it coming." 

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