Air Canada loses $566-million in quarter

[dArKeR]

Air Canada reported a deep second-quarter loss as the insolvent company restructures while dealing with the hit to travel from the SARS outbreak and the war in Iraq.

For the quarter ended June 30, the company reported a loss of $566-million or $4.70 a share, compared with a profit of $30-million or 25 cents a year ago.

Revenue fell to $1.95-billion from $2.55-billion a year ago.
The airline said its operating loss was $270-million compared with an operating profit of $62-million a year ago.


http://theglobeandmail.com/servlet/story/RTGAM.20030807.wbaircan0807/BNStory/Business/

http://darkerxdarker.tripod.com/

[American Renaissance]

1. Kamikaze!

Any airline with a business model that can be best discribed as Kamikaze is doomed.

They did everything they could to try driving the competition out of business, and while they were able to destroy Canadian Pacific, they mortally wounded themselves in the process.

US Airlines watch out, Robert Milton (Frank Lorenzo hellspawn) is going to be looking for a new job soon.

Air Canada is also the ultimate textbook case of botched privatization

[Minstrel Boy]

2. It should never have been privatized

Given the realities of air travel in Canada, Air Canada made much more sense as a crown corporation.

[American Renaissance]

3. I guess

I think Air Canada would be best as a strictly international crown corporation, WestJet and JetsGo and the rest are doing fine domestically.

The mistake air canada made after privatization was getting to deep into the American market. The US airlines already had way to much cross border capacity and Air Canada just made it worse for themselves and everyone else by adding more.

Their service also sucks worse than anything I have ever seen, except with maybe the exceptions of Aeroflot or Northwest.

Last time I flew Air Canada I was the only person sitting in the last row on the plane, I asked the flight attendant if I could have the whole can of pop. She rudely said no, and poured the half full can into the garbage.