Air Transport World

Canada. (ATW's World Airline Report).(Canadian airline developments)(Industry Overview)

AIR CANADA: Declaring that "the business model is broken and it must be fixed without burning any more furniture," Air Canada President and CEO Robert Milton took the airline into bankruptcy on April 1 under Canada's Companies' Creditors Arrangement Act, broadly the equivalent of US Chapter 11 protection. Milton's decision followed three years of losses at Air Canada, including a C$828 million net loss for 2002, a result that included a C$400 noncash tax-related charge.

In November 2001 it launched Tango, a brand with a simplified fare structure and no-frills onboard product. Tango, however, is staffed by AC employees with mainline pay rates and work rules. Last fall, Zip, a Calgary-based low-fare operation, took to the skies. Unlike Tango, Zip is a standalone subsidiary of AC. …

Log in to your account to read this article – and millions more.