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Old Posted May 12, 2018, 1:52 AM
Cage Cage is offline
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Join Date: Oct 2010
Location: YYC
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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.
This.

I would add that Canadian’s many flirtations with bankruptcy in the 90s gave the government time to rewrite a clause (section 47 of the Transport Canada Act) allowing the govt to suspend the competition act and allow the airlines to discuss a merger or buyout. Behind the scenes, the govt was out right threatening AC to get them to buyout CP. the govt didnt want to lose seats to the reform party beacause they let a Vancouver company die at the hands of a Quebec company. AC initial position was to let CP go banks and then let AC inherit the earth.
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