Air Canada

Paper Summary:

This paper discusses Air Canada and the significant market difficulties it has been experiencing since September 11, 2001. The paper explains that some of the difficulties it has been facing were a result of operational difficulties associated with its acquisition of Canadian Airlines International Ltd (CAIL). The difficulty that Air Canada faced with the integration of CAIL's pilots into the Air Canada Pilots' Association was indicative of the overall anti-competitive influence of unions in general. This paper examines the labor dispute between these two pilot associations.

From the Paper:

"Air Canada is the leading Canadian airline but has had significant market difficult since September 11, 2001 which has seen the airline enter and exit bankruptcy proceedings. Additionally, some of its difficulties have arisen from pre-bankruptcy operational difficulties associated with its rapid growth of which its acquisition of Canadian Airlines International, Ltd. (CAIL) was a major contributor. Overall the size of the Canadian airline industry in economic terms is over $4b and as such occupies a central role in the national economy. The difficulty that Air Canada faced with the integration of CAIL's pilots into the Air Canada Pilots' Association was indicative of the overall anti-competitive influence of unions in general."

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