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Air Canada has been experiencing significant problems

  • financial problem
  • union
  • customer dissatisfaction
  • equipment
  • aircrafts
  • etc.

The problem started since 2001 from the merger with Canadian Airlines.

They struggle to overcome the bankruptcy issue very hard since then. It became back and forth like they seemed to be doing okay and then have a huge amount of net loss again through the years. The received funds and investments from private companies as well as from Ottawa. However, until 2012, they were facing another bankruptcy with failure of negotiating with unions. So the analyst used to say that the union and the pension plan is the chronic problem in Air Canada.

However, in February 2013, Air Canada reported that they had net profit from the 3rd quarter in 2012, which was a great news for them. They are about to launch a new low-cost carrier, Rouge, in July 2013, and they see this as an opportunity to compete with Westjet and to boost to returning to the profit.

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