Air Canada says full Max fleet might not fly until next year
Thread Starter
Air Canada says full Max fleet might not fly until next year
Good Afternoon All:
This article is taken from the Globe and Mail about Team red's decision to postpone flying the Max until next year's summer schedule. In spite of the article which was released before trading today Air Canada is trading at $47:33 or a market capitalization of 18.77 Billion.
The hardest thing I think is how to convince the travelling public "who know" what aircraft they will be flying how to regain trust and confidence in the 737 MAX? To think the phrase "If it ain't Boeing I ain't going" has most likely been replaced by "If it's Boeing I ain't going" but I digress.
https://www.theglobeandmail.com/busi...l-next-summer/
Air Canada says it could be a year before its full fleet of Boeing 737 Max passenger jets returns to the skies.
Montreal-based Air Canada, which has 24 of the jets and another 26 on order, said the negative impact of the global grounding weighed on second quarter profit, and will worsen in the third quarter’s peak travel season.
The loss of the Max, which were barred from flying in March after two fatal crashes that killed 346 people, will reduce passenger capacity by 2 per cent from the year-ago period, said Air Canada, which has removed the planes from its schedule until Jan. 8.
Michael Rousseau, Air Canada’s deputy chief executive office, said he hopes the world’s aviation regulators will clear the planes to fly by the end of this year, but the time it takes to hire and train cabin crews and 400 pilots will mean the full fleet of 51 planes might not be in service until next summer.
The two dozen Max planes currently in its fleet could resume carrying passengers much sooner than that.
“We recognize the grounding has impacted our customers and affected their travel plans and we certainly regret that inconvenience and look forward to the return to normal operations once regulators have completed their review,” Calin Rovinescu, Air Canada’s chief executive officer, said on a conference call with stock analysts on Tuesday.
Canada’s largest airline said on Tuesday it made a profit of $343-million, or $1.26 a share, in the three months ending on June 30, aided by a foreign exchange gain of $117-million. This compares with a loss of $102-million (37 cents) in the second quarter of 2018, a period in which Air Canada saw currency exchange losses of $82-million and asset sales losses worth $186-million.
Air Canada responded to the loss of its Max planes by cancelling routes, leasing aircraft and relying on its Rouge subsidiary’s planes. The carrier said it covered 97 per cent of its flights, a number that drops to about 95 per cent in the third quarter, historically its most profitable and busy period. I Air Canada’s full-year guidance remains suspended in light of the Max grounding.Passenger revenue – primarily ticket sales – rose by almost 11 per cent to $4.3-billion and traffic rose by 3.6 per cent in the second quarter.
Adjusted costs per available seat mile rose by almost 6 per cent from the second quarter of 2018, due to a decline in seats to sell, and the costs of the Max grounding, including paying 400 idled pilots and replacing aircraft. Air Canada released its results before markets opened on Tuesday. Investors responded to the results by driving up Air Canada’s share price on the Toronto Stock Exchange by 2 per cent, amounting to year-to-date gain of about 75 per cent.
This article is taken from the Globe and Mail about Team red's decision to postpone flying the Max until next year's summer schedule. In spite of the article which was released before trading today Air Canada is trading at $47:33 or a market capitalization of 18.77 Billion.
The hardest thing I think is how to convince the travelling public "who know" what aircraft they will be flying how to regain trust and confidence in the 737 MAX? To think the phrase "If it ain't Boeing I ain't going" has most likely been replaced by "If it's Boeing I ain't going" but I digress.
https://www.theglobeandmail.com/busi...l-next-summer/
Air Canada says it could be a year before its full fleet of Boeing 737 Max passenger jets returns to the skies.
Montreal-based Air Canada, which has 24 of the jets and another 26 on order, said the negative impact of the global grounding weighed on second quarter profit, and will worsen in the third quarter’s peak travel season.
The loss of the Max, which were barred from flying in March after two fatal crashes that killed 346 people, will reduce passenger capacity by 2 per cent from the year-ago period, said Air Canada, which has removed the planes from its schedule until Jan. 8.
Michael Rousseau, Air Canada’s deputy chief executive office, said he hopes the world’s aviation regulators will clear the planes to fly by the end of this year, but the time it takes to hire and train cabin crews and 400 pilots will mean the full fleet of 51 planes might not be in service until next summer.
The two dozen Max planes currently in its fleet could resume carrying passengers much sooner than that.
“We recognize the grounding has impacted our customers and affected their travel plans and we certainly regret that inconvenience and look forward to the return to normal operations once regulators have completed their review,” Calin Rovinescu, Air Canada’s chief executive officer, said on a conference call with stock analysts on Tuesday.
Canada’s largest airline said on Tuesday it made a profit of $343-million, or $1.26 a share, in the three months ending on June 30, aided by a foreign exchange gain of $117-million. This compares with a loss of $102-million (37 cents) in the second quarter of 2018, a period in which Air Canada saw currency exchange losses of $82-million and asset sales losses worth $186-million.
Air Canada responded to the loss of its Max planes by cancelling routes, leasing aircraft and relying on its Rouge subsidiary’s planes. The carrier said it covered 97 per cent of its flights, a number that drops to about 95 per cent in the third quarter, historically its most profitable and busy period. I Air Canada’s full-year guidance remains suspended in light of the Max grounding.Passenger revenue – primarily ticket sales – rose by almost 11 per cent to $4.3-billion and traffic rose by 3.6 per cent in the second quarter.
Adjusted costs per available seat mile rose by almost 6 per cent from the second quarter of 2018, due to a decline in seats to sell, and the costs of the Max grounding, including paying 400 idled pilots and replacing aircraft. Air Canada released its results before markets opened on Tuesday. Investors responded to the results by driving up Air Canada’s share price on the Toronto Stock Exchange by 2 per cent, amounting to year-to-date gain of about 75 per cent.
Join Date: Jul 2005
Location: Canadian Shield
Posts: 538
Likes: 0
Received 0 Likes
on
0 Posts
Various news agencies and airlines all seem to be quoting different dates... as if those parties had any actual say in the matter.
The simple fact is: unless or until the FAA lifts the grounding order, no 737 Maxes will be flying passengers ANYWHERE at ANY TIME, future schedules be damned!
The simple fact is: unless or until the FAA lifts the grounding order, no 737 Maxes will be flying passengers ANYWHERE at ANY TIME, future schedules be damned!
