David Knibb/MONTREAL
If the pilots ratify their new four-year contract, which seems likely, Canada's dominant airline intends to launch a low-cost unit before year-end, hire more staff, order new aircraft, and start the first wave of its global growth plans.
The pilot agreement will be a boost to Air Canada - and could bring more labour peace to the airline than it has enjoyed in years. But three other quick victories in succession have also helped clear the way ahead.
Firstly, there were no outside bids for Canadian Regional Airlines. Air Canada wanted to keep the regional carrier, but was forced by Ottawa to put it on hold for 60 days as one of the conditions of its Canadian Airlines takeover. AMR, parent of American Airlines, was considered a likely bidder, but it made no offer. Air Canada plans to add Canadian Regional to its new consolidated feeder network.
Secondly, the UK's competition commission announced it has ended its four month investigation into Air Canada's takeover of Canadian and decided not to take any action. The commission launched its probe after British Airways complained. The commission could have required Air Canada to divest Heathrow slots, but found that the takeover did not damage UK-Canada competition.
The final piece of good news came from the Alberta court of appeal, which dismissed the only complaint against the approval of Canadian's restructuring plan. A Calgary court concluded in June that the plan was fair and reasonable, but an unsecured creditor appealed. The dismissal closes the book on the issue and allows Air Canada to focus on opportunities created in integrating Canada's two major carriers.
Robert Milton, Air Canada's president, may be stressing expansion in order to encourage his pilots to ratify their contract, but he also is keen to move ahead. Fleet plans include at least 100 new aircraft to replace Canadian's Boeing 737-200s and Fokker F-28s, plus up to 50 more jets for growth.
Source: Airline Business
