Business

WILL AIR CANADA CRASH AND BURN?

April 26 2004
Business

WILL AIR CANADA CRASH AND BURN?

April 26 2004

WILL AIR CANADA CRASH AND BURN?

Yes. “It’s going to be difficult for them to turn around what has been a deteriorating situation. I believe Air Canada will be back in bankruptcy protection within two years ."-Douglas Reid, strategy professor, Queen’s School of Business

Maybe. “If Air Canada is going to be viable long-term, they are going to have to reduce labour costs more than what has already been agreed to by the unions-and that’s over and above the pension issue.” - Cameron Doerksen, equity analyst, Dlouhy Merchant, Montreal-based investment bank

No. “I’m not a business guy, but even I could make money with it. You’ve got 60 per cent of the domestic market, 90 per cent of the international market. It seems to me there’s a pretty good business model here.”