Air Canada Acquisition Lifts Industry but Turbulence Remains

By Milton, Robert A. | Canadian Speeches, March-April 2001 | Go to article overview

Air Canada Acquisition Lifts Industry but Turbulence Remains


Milton, Robert A., Canadian Speeches


"TEXT 1780.","Canadian Speeches: Volume 15, #01, March/April 2001.","ROBERT A. MILTON. ","President & Chief Executive Officer, Air Canada.","Air Canada acquisition lifts industry but turbulence remains.","Aircraft.","Without Air Canada's acquisition of Canadian Airlines, 2000 would have been the darkest year in the history of Canada's airline industry, Air Canada's CEO asserts. There would have been thousands of lost jobs, stranded passengers, unpaid suppliers, or millions of taxpayers dollars for a bailout of Canadian Airlines. The merger is said to have brought stability, dependability and profitability to the industry. But with intense competition, higher fuel costs, an economic slowdown, and other factors, airlines must still fly through turbulent times. Speech to the Canadian Club of Toronto, Toronto, February 5, 2001."," I want to start with some words which you've probably heard at 35,000 feet, but are worth repeating on the ground. In case you're starting to get worried, please rest assured that I'm not going to tell you what the scenery is like on the right-hand side of the room.

Nor am I going to point out the exits -- although some of you may regret that later! The phrase I'm thinking of comprises just six words and they are: "Thank you for choosing Air Canada."

At this point in our history, that phrase probably means more to us at the airline than ever before. It would be an understatement to say that we ended last year with mixed results. The year 2000 was exceptionally challenging for Air Canada.

It seemed every day brought some kind of change to our operation. It was a year of transition which wasn't even on our radar screen back in 1999. We certainly didn't plan on it and you certainly didn't count on it.

But it was also a year when we accomplished what it takes most companies several years to do. We completed our acquisition of Canadian Airlines and brought stability to a company which was on the verge of bankruptcy.

Yet, in the face of all these challenges, Air Canada was named the Best Managed Airline in North America by Aviation Week and Space Technology magazine and the Safest Airline in the World by our peers.

The continued support of thousands of our customers kept us going in 2000 and it has fuelled our commitment to continue the job of improving our service and building a new airline presence in Canada.

With that in mind, I want to take this opportunity to tell you what you can expect from Air Canada and the airline industry in 2001.

The airline business is a tough business. We are slaves to so many factors entirely outside our control. From weather to wars, our industry is not for the faint of heart. A recent Merrill Lynch report on the industry described it as "cyclical, intensely competitive and mature" and they could not have been more right.

Airlines are capital intensive; highly unionized, tremendously susceptible to fuel price swings and are highly regulated. Given all these factors, it's a wonder that so many of us love this business and even more are tying to get in.

The coming year is bound to be filled with tremendous challenges. It seems that every airline CEO from any airline in the world can begin any speech with those words. We are facing two curves this year.

One is the economic curve which requires us to make important, timely decisions about the economy and how to best manage our business in the face of a potentially-worsening slowdown.

The other curve is the learning curve which we are facing as we enter into Year Two of a restructured airline industry.

That also requires some important and timely decisions which affect the airline and its customers, and I feel it's important to share that perspective.

On the economic side, it's impossible to appreciate the progress which we have made since Canadian Airlines joined us, unless you look at the "what if" scenario -- a scenario which could easily have made the year 2000 the darkest year in Canada's airline industry history. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Air Canada Acquisition Lifts Industry but Turbulence Remains
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.