Air Canada has reportedly lost another $566 million in their second quarter earnings.
Globe and Mail Story
I'm sure the end is near since they are already insolvent and they continue to lose this much money. How much can the creditors put up with?
Management blames SARS and the war in Iraq. I'm surprised they didn't blame "Mad Cow Disease" and Global Warming especially since Westjet managed to pull off a profit in the same quarter.
I wonder about some of the so-called strategy that AC management is using. When I travel to Toronto, Tango is the cheapest ticket by far even thought Zip flys there too. Isn't Zip supposed to be the discount airline? So I pay $140 to jump on an A320 rather than $400 to sit in a 737.
They still don't seem to understand that they can't offer fares at below cost and make money doing it!
Anyway, I'm seeing a hell of a lot of minor players out there chomping at the bit waiting to slide into Air Canada's role when it finally gasps its last breath. I wonder how strong Air Canada's will to live is?