Another 12-18 months required for aviation recovery - Air Canada
Air Canada CEO, Calin Rovinescu, stated the global aviation sector will require another 12 to 18 months to recover from the current global economic recession (Reuters, 17-Sep-2009). Mr Rovinescu added that Air Canada’s operating costs are too high, especially compared to its major rivals, including Canadian LCC, WestJet. The carrier plans to enact CAD400 million (USD380 million) in cost reductions and CAD100 million (USD94 million) in revenue enhancing measures by 2011, in an attempt to return to profit "by the end of 2010 or 2011".
Air Canada: "The aviation sector is usually the first to feel the effects of a recession and the last to escape it. And for the moment, despite a slight recovery in cargo, everything indicates that our sector will need another 12 to 18 months to start breathing normally again," Calin Rovinescu, CEO. Source: Reuters, 17-Sep-2009.