In 1990 and 1991, Air Canada reported a significant loss. It carried nearly two million fewer passengers than it did in the previous year. The reason for the drop in passengers was attribute to an economic recession, the decline in travel from the Persian Gulf, and increased competition from other international airlines. While the airline was still profitable, the company’s financial situation deteriorated significantly. In April 2003, it filed for bankruptcy protection. While its shares have continued to rise, its stock price has fallen drastically.
In September 2003, the company declared bankruptcy. A restructuring effort was initiate that included a reduction of 25% in annual operating costs. This was accomplished through wage cuts, layoffs, and the purchase of a third-party investor. Ultimately, the company decided to change its name to Air Canada and became an official, publicly owned airline. In 2007, the airline also restructured its business operations and began negotiating with outside investors to raise new capital.
The airline began upgrading its aircraft to improve customer service.
It also introduced computers in its reservations system and the Vickers Vanguard turboprop in the 1960s. In 1964, Air Canada changed its name to its current name, and the airline officially became an independent company on January 1, 1965. Despite the challenges, the airline continues to invest in technology and has improved its customer service. Its mission is to continue improving the travel experience for its passengers. The company is commit to ensuring that its services are top-of-the-line.
In May 1996, Lamar Durrett was name president of Air Canada. He was Harris’ protégé and joined the airline with him in 1992 as an executive vice-president. In August 1996, he was succeed by John Fraser as chairman of the board. During the past two decades, the company has undergone a number of restructuring and deregulation processes. While the airline is a global player, its troubles are not new. However, the company’s history has been make by controversy. Despite these changes, it has remained an industry giant.
In 2002, Air Canada launched its first low-cost carrier, the Tango.
The 2003, the Air Canada Jazz and the Zip were relaunched. In 2003, the airline filed for bankruptcy protection. Since then, the company’s troubles have gotten worse, and it has been accused of wrongful acts by employees. There are several articles about the history of AirCanada and its recent struggles in the US. There are many articles in Maclean’s and other publications about the airline’s issues.
Privatization efforts lasted for years. In the interim, the company restructured its company to save money. The airline’s public relations program, directed by its president and chairman, concentrated on its customers, employees, and the media. The company’s strategy emphasized the company’s competitive position and its benefits, and it also aimed to cut annual operating costs by 25 percent. It also sought an infusion of new equity from an outside investor.
In 1993, the airline underwent a massive restructuring of its operations.
Shedding five senior management positions and an executive vice-president. It also eliminated 200 administrative and technical support positions and reorganized its cargo division. As a result, the company has lowered its costs by more than 300 million dollars each year. In addition to this, the restructuring forced the airline to introduce new aircraft that were more fuel-efficient and more environmentally-friendly.
In 1993, the CEO of Air Canada introduced non-smoking flights. This was a result of the company’s growing concern over health-related issues. In addition to removing cigarette smoke from the cabins, the CEO of Air Canada introduced a new reservation system called Reservec II. Its new reservation system was billed as the first real-time computer reservations system in the world. Eventually, the airline was privatized, but the Gulf War caused many complications for the industry.
In May 1996, the airline’s president, Lamar Durrett, had already joined the company as an executive vice-president in the same role as Harris. The two had been friends since 1988 and became close colleagues. They are both now Air Canada’s chairman. At the time of the merger, the company was undergoing a major restructuring. The company was C$2.4 billion in debt at the time of the collapse. In August of this year, the airline filed for bankruptcy protection.