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Old Posted May 12, 2018, 1:51 AM
wave46 wave46 is offline
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Quote:
Originally Posted by isaidso View Post
I believe Canadian Airlines was about to collapse and a takeover by Air Canada deemed the best way of preserving jobs. Consensus was that Canada wasn't big enough to support 2 carriers.
The mid-to-late 1990s were not a good time for Canada economically.

The dollar had taken a beating which hurt international travel. The economy was still pretty weak due to the early 1990s recession and government cuts at the federal and provincial levels. Commodity prices were in the dumps, which hurt the natural resources sector.

Canadian Airlines was loaded down with debt. There was no ownership group in Canada that would take it on, but American Airlines wanted to pending a change in ownership regulations. Luckily for AA, they didn't, given how the US airlines fared in the early 2000s.

The merger between AC and Canadian was the viewed as best option, as you've mentioned.
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