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Conference kaosws::canada

Title:True North Strong & Free
Notice:Introduction in Note 535, For Sale/Wanted in 524
Moderator:POLAR::RICHARDSON
Created:Fri Jun 19 1987
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1040
Total number of notes:13668

609.0. "air canada + canadian merging" by VAOU09::LAM () Thu Sep 10 1992 06:42

    just heard on the news that Canadian and Air Canada ARE MERGING...
    goodbye frequent flyer points
    goodbye cheap flights
    goodbye 10000 jobs
    hello monopoly
                          
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609.1SUBURB::THOMASHThe Devon DumplingThu Sep 10 1992 11:189
	I've heard of and flown Air Canada and thought they were excellent,
	however not of Canadian.

	What sort of size id Canadian to Air Canada, and do they fly the
	same routes and time?

	Heather
	
609.2KAOFS::S_BROOKThu Sep 10 1992 13:3618
    Canadi>n Airlines International is owned by Pacific Western Airlines
    which was a small Western based carrier with BIG aspirations.  They
    bought up from Canadian Pacific what was known as CP Air, which formed
    the backbone of Canadi>n's service.  PWA then went on to force Wardair
    out of the market by buying them up.  Max Ward was Canada's Freddie
    Laker, however, Ward, unlike Laker sold out and came out of it with
    a healthy bankbook!
    
    PWA also owns a number of smaller connector airlines and has
    affiliations with a number more small airlines that fly under the
    Canadian Partner banner.
    
    I don't have numbers, but it is a significant size, smaller
    than Air Canada though.
    
    Stuart
    
    
609.3They don't compete internationallyVAOU09::BOTMANpieterThu Sep 10 1992 21:0717
    Canadian and Air Canada compete domestically, both flying to major cities
    within Canada.  Before Canadian dumped off some northern routes to
    feeder or second tier carriers, Canadian and Air Canada could be
    distinguished by their service to remote or smaller communities.  
    
    The Canadian govt' regulated service (and still does north of (55
    degrees?) and so could prescribe service and routes, etc in the old
    days.
    
    Air Canada and Canadian do not compete internationally, as Canada
    negotiates bilateral agreements on a route by route basis, there is no
    "open skies" agreement for most countries.  So, in effect Canadian and
    Air Canada "split the world" between them from a canadian carrier
    perspective.
    
    Pieter
    
609.4numbers, numbersVAOU09::LAMFri Sep 11 1992 01:579
    Here are the numbers:
    			Air Canada		Canadian
    Assets		4.9b			2.8b
    Revenue		3.6b			2.9b
    1991 loss		218m			162m
    Long Term Debt	2.3b			1.5b
    Employees		18200			15000
    Fleet		102			88
    
609.5SUBURB::THOMASHThe Devon DumplingFri Sep 11 1992 12:0315
	Looking at the business view:

	Air Canada does international,

	and the both do internal, but not conflicting, services

	and the numbers posted in .4 look unhealthy.

	So, the merger could help cut admin, join some services and cut expense.

	Otherwise they'll both get more unhealthy    

	Phew, I wouldn't buy shares in either at the moment.

	Heather
609.6KAOFS::S_BROOKFri Sep 11 1992 13:3414
    Canadian also flies internationally and on comparable almost competing
    routes ...
    
    For example, Air Canada flies Ottawa to London Heathrow, and Canadian
    flies Wardair's old Ottawa to London Gatwick route.  Canadian flies
    a lot into the Pacific where Air Canada dominates on the North
    Atlantic.
    
    The numbers are unhealthy, but what is interesting is the relatively
    high staff / revenue and staff / fleet numbers for Canadian compared
    with Air Canada ... no wonder Canadian staff are bleating so strongly
    about loss of jobs.
    
    Stuart
609.7SUBURB::THOMASHThe Devon DumplingMon Sep 14 1992 09:2313
>    Canadian also flies internationally and on comparable almost competing
>    routes ...
>    
>    For example, Air Canada flies Ottawa to London Heathrow, and Canadian
>    flies Wardair's old Ottawa to London Gatwick route.  Canadian flies
>    a lot into the Pacific where Air Canada dominates on the North
>    Atlantic.
 
	These are not comparable, Gatwick is the charter flyers nightmare.

	I would pay a LOT more money to fly from Heathrow.

	Heather
609.8R2ME2::HINXMANI'll just sit here and rustMon Sep 14 1992 12:4817
	.7 suggests its author has more money than experience of Gatwick
	airport.

	Situations equivalent to the quoted text are common. E.g. from
	Boston
		British Airways and American fly to Heathrow
		Virgin and Northwest fly to Gatwick

	On my last trip to Britain I happened to fly Northwest. I did
	not find the facilities at Gatwick any worse than Terminal 3
	at Heathrow.

	The situation Heather talks about is restricted to a few summer
	weekends. Bad situations can arise at Heathrow also. For instance
	when British Airways have lots of aircraft frozen to the jetways.

	Tony
609.9KAOFS::S_BROOKMon Sep 14 1992 13:3613
    At one time Heather, I'd have agreed with you, delays through Gatwick
    were inevitable ... but that was about 8 or more years ago.  We've been
    back to England 5 times.  Twice from Heathrow and 3 times from Gatwick.
    On both occasions, our flights out of Heathrow were delayed by over an
    hour "due to operational difficulties".  The first time from Gatwick
    we were several hours delayed, but the last two times we were rolling
    out on the apron precisely on schedule.
    
    The only thing that now decides which airport I choose is where my
    first destination is, given comparable fares ... going to certain parts
    of the country from Gatquick is a royal pain.
    
    Stuart
609.10aeroplanULYSSE::DOROSHTue Sep 15 1992 12:273
    Has Air Canada made any changes to its frequent flyer programme???
    
    dkd
609.11KAOFS::S_BROOKTue Sep 15 1992 13:243
    Since When ?
    
    
609.12SUBURB::THOMASHThe Devon DumplingThu Sep 17 1992 11:4316
>	.7 suggests its author has more money than experience of Gatwick
>	airport.


	I have a lot of experience of Gatwick, I didn't have much to compare it
	against until I started to use Heathrow on business.
	The last time I used it was two years ago in March - and I swore I 
	would never use it again unless I really couldn't find anywehere else 
	at any price - and then I may decide I'd rather not travel at all.

	Last year I went to Toronto via Air Canada from Heathrow for 250 quid
	return, at the end of June.
	Compared to my many experiences from Gatwick, it was a dream.


	Heather
609.13KAOFS::S_BROOKThu Sep 17 1992 13:4014
    The hitch with Gatquick is that when delays start occurring, they
    can quickly snowball to the point where no plane can arrive or
    depart on time.  Because it does handle such a vast number of charters
    too, delays mean that the place gets jammed very quickly with
    holidaymakers who have little option but to wait at the airport.
    The business traveller usually attempts to make alternate arrangements
    which usually eases the "people" congestion.
    
    There are definitely times I've sworn at delays out of Gatwick.
    
    You should  have tried Toronto terminal 1.
    
    Stuart