The route becomes scheduled.
By the start of the 1960s, the fleet includes 2 Dragon Rapides, 2 Cessna 180s, 2 C-182s, and 1 C-150. Yugoslav-born Zivota Boskovic is chief pilot and one of four directors, with L. K. Campling, F. K. Campling, and
H. van der Wal.
In June 1963, 77% of the company is sold to New York-based Blackwell Enterprises for ?120,000. The chief pilot, Boskovic, moves across the airport to form his own airline, now known as ZB Air, Ltd. Blackwell reforms Campling into Safari Air Service, Ltd., but leaves intact the Entebbe-based portion of the Caspar subsidiary.
CAMSA (COMPANIA AEREO MERCANTIL, S. A.): Peru (19471957). This operation is formed in February 1947 to offer feeder services from Tingo Maria. Employing a fleet that would come to comprise 1 converted B-18 bomber, 1 Fairchild C-82 Packet, and 6 Cessna T-50s, the carrier offers intermittent services until 1951.
Following a brief suspension of operations, CAMSA resumes flying until 1957.
CANADA 3000 AIRLINES, LTD.: 27 Fasken Drive, Toronto, Ontario M9W 1K6, Canada; Phone (416) 674-0257; Fax (416) 6740256; Http://www. canada3000.com; Code 2T; Year Founded 1988. Air 2000 Airlines, Ltd. is formed at Toronto on April 1, 1988 as a Canadian associate of the U. K. charter operator by that name, which is the airlift arm of the tour group Owners Abroad. The Manchester-based airline, with quarter ownership, holds too much “foreign” interest and is forced to divest itself in order for the Canadian operation to get started.
Accordingly, the 25% shareholding is sold to Toronto-based Deluce Investments, Ltd. and Robert Deluce becomes president. Other shareholders include Colin Hunter, Paul Jervis, and Chairman John Lecky. Angus Kinnear is appointed managing director, with Capt. David “Dusty” Thompson as vice president-operations and chief pilot.
A Boeing 757-28A leased from Air 2000, Ltd. in the U. K. arrives in late November; it is painted in Air 2000 livery with a maple leaf painted on the forward passenger door.
The company receives an operating license from the National Transportation Agency of Transport Canada on November 29; certification allows the Canadian company to begin nonscheduled flights to Caribbean, Mexican, and Florida holiday destinations on December 1.
Airline employment in 1989 stands at 165. In accordance with the terms of its license, the company begins seeking a new name with which to replace the one employed. An initial idea, Air 3000, Ltd., is submitted to the NTA at the end of April; the regulators will turn the concept down.
The company receives the first B-757-28A it has chartered from ILFC on May 5, allowing return of the leased unit. The new plane, with Air 3000, Ltd. titles, will have to be repainted.
Agreeable to NTA, the carrier disassociates itself entirely from the British carrier on May 10 by changing its name to Canada 3000 Airlines, Ltd. With 2 chartered B-757-28As in hand by mid-month, the reformed company is able to launch its first service on May 17, from London (LGW) to Toronto.
In 1990-1992, the company builds up a Canadian network and introduces additional services to Europe. Destinations visited from gateways at Calgary, Edmonton, Montreal, Toronto, Vancouver, and Winnipeg are continued. These include Acapulco, Amsterdam, Antigua, Barbados, Belfast, Birmingham, Cancun, Costa Rica, Cuba, Dublin, Dusseldorf, Edinburgh, Ft. Lauderdale, Ft. Myers, Glasgow, Grenada, Halifax, Hu-atulco, Ixtapa, Las Vegas, Lisbon, London, Los Cabos, Manchester, Manzanillo, Margarita Island, Nassau, Nice, Oaxaca, Oporto, Orlando, Palm Springs, Paris, Ponta Delgada, Puerto Plata, Puerto Vallarta, Quebec City, St. Johns, St. Kitts, St. Lucia, St. Martin, St. Petersburg, St. Thomas, San Juan, Shannon, Terceira, and the Turks and Caicos Islands.
New routes are opened to Honolulu and Maui from Vancouver on behalf of Fiesta West as enplanements total a million. The winter lease of B-757s from the British independent Air 2000, Ltd. continues.
Airline employment in 1993 stands at 752. Employing the carrier’s 7 leased Boeing 757-200ERs, President Deluce adds charter and tour frequencies from Toronto to Copenhagen early in the year. The first of 3 chartered Airbus Industrie A320-211s arrives on May 29 on lease from Monarch Airlines, Ltd.
Frequencies from Vancouver to Glasgow, Manchester, Amsterdam, and Dusseldorf are introduced during 1994. On behalf of Fiesta West, a route is opened from Vancouver to Kona. The fleet is expanded by the addition of 2 A320-212s, while the number of chartered B-757-200ERs is reduced to 1 Dash-23A and 3 Dash-28As.
Flights continue in 1995. On behalf of Fiesta West, a route is stretched from Vancouver to Kauai. On September 16, Flight 5516, a B-757-28A en route from Denmark to Toronto, comes within 3-mi. horizontal and 2,000-ft. vertical of American Airlines Flight 53, a B-767-323ER en route from Scotland to Chicago; the loss of required separation is blamed on an ATC trainee at Gander, Newfoundland.
On January 10, 1996, Sunquest Vacations, Ltd. signs a deal giving Sunquest access to Canada 3000 flights, including destinations throughout Canada, as well as Florida, California, and the U. K. Canada 3000 will provide lift for Sunquest tours. Chartered from ILFC for seven years, an A320-212 enters service in March.
A record is established on October 23 when an entire female crew— Capt. Nicole Sauve, First Officer Linda Galipeau, and seven flight attendants — operates the service between Toronto and Manchester.
The workforce stands at 1,406 in 1997 and the carrier operates a leased fleet of 4 A320-212s, 2 B-757-23As, 3 B-757-28As, and 1 each B-757-23AER and B-757-28AER.
Destinations visited include Acapulco, Amsterdam, Antigua, Barbados, Belfast, Birmingham, Cancun, Costa Rica, Dublin, Dusseldorf, Edinburgh, Ft. Lauderdale, Glasgow, Honolulu, Manchester, Nice, Nassau, Las Vegas, London, Paris, Shannon, and numerous Caribbean markets.
During the year, flights begin to Australia; Canada 3000 is the first Canadian charter carrier to offer direct service down under. The carrier also begins a yearlong experiment to see if changing its tail titles from “Canada 3000” to “C-3” will have any marketing advantage.
When major contractor Signature Vacations announces in November that it will transfer to another airline a year hence, the company begins to sign up new charter operators or increase its relationship with older clients, including Sunflight and Sunquest.
When the summer schedule is unveiled on March 1, 1998, Newcastle, Belfast, and Stuttgart have been added to the European network, while Moncton, New Brunswick, is placed on the domestic map.
An A330-202 arrives under charter from ILFC on April 29; a second is delivered at the end of May. The carrier is the first in North America to operate this advanced type. The first A330-202 revenue flight occurs on May 10, from Vancouver to Amsterdam via Calgary.
Also in May, the company opens the first office of its new wholesale tour operation, Canada 3000 Holidays, in Vancouver. Finding no advantage in the “C-3” tail titles, the concept is dropped.
Departures and arrivals at Toronto are transferred from Terminal 1 to Terminal 3 on December 15.
Enplanements for the year total 2.5 million, while revenues of C$270 million are earned.
Airline employment at the beginning of 1999 stands at 1,890.
The company now aligns with the North American Leisure Group.
Two more A330-202s join the fleet during spring and summer.
The company’s domestic services continue to expand, reaching 12 points and yielding 750,00 passengers during the 12 months. On the year, customer bookings reach 2,7 million.
Airline employment stands at 2,100 at the beginning of 2000, an 11.1% increase. To insure competition for the new Air Canada-Canadian Airlines combine, the government on February 17 grants Canada 3000 immediate rights to offer scheduled flights to France, Germany, and the U. K. Authorization of the carrier’s request to serve Japan, India, and the Philippines is delayed.
Weekly A330-202 roundtrips commence on May 2 from Toronto to Brisbane via Vancouver, Honolulu, and Sydney. The next day, A330-202 service is initiated to Berlin from Calgary and Vancouver. On May 14, orders are placed for 4 (later increased to 5) A319-100s with which to expand domestic service.
An initial public offering (IPO) of three million shares is completed on July 13, raising gross proceeds of C$30 million. Trading of the carrier’s common shares begins on the Toronto Stock Exchange.
During the summer, new service is started from Toronto to Abbotts-ford, from Vancouver and Calgary to Moncton, from Toronto to New Orleans, and from Vancouver and Calgary to Berlin. Just in time for the XXVII Olympiad in Australia, new flights are introduced in September from Toronto to Brisbane via Vancouver.
In mid-October the carrier places an order for 6 A319-100s for use on domestic routes beginning in late 2001; it also receives authority for service from Vancouver to New Delhi via Toronto and London (LGW).
Weekly A320-211 roundtrips commence on November 1 from Toronto to Abbotsford, British Columbia.
CANADIAN AIR-CRANE, LTD.: 7293 Wilson Ave., Delta, British Columbia V4K 4E2, Canada; Phone (604) 940-1715; Fax (604) 9041735; Http://www. air-crane. com; Year Founded 1991. Canadian Air-Crane is established at Delta in 1991 to engage in such heavy-lift operations as construction, forestry work (including helilogging), and fire fighting. Within six years, Operations Manager/Chief Pilot Paul Mavrinac operates a fleet that includes 3 huge Sikorsky S-64 Sky Cranes leased from Erickson Air Crane and 1 Bell 206B JetRanger.
At the 1997 FireExpo held at Abbotsford, British Columbia, during the summer, a pair of S-64s steal the show, wowing crowds with demonstrations of their 3,000-gallon belly-dump systems. Commercial flights also continue during the year and over the next three.
CANADIAN AIRLINES, LTD.: #2800-700 2nd Street, SW, Calgary, Alberta T2P 2W2, Canada; Phone (403) 294-2000; Fax (403) 2942066; Http://www. cdnair. ca; Code CP; Year Founded 1999. Canadian Airlines International, Ltd. is given a new name on January 13, 1999, as well as a new look and a “Proud Wings” logo featuring a stylized bright blue Canada goose.
The first aircraft painted in the new livery is a B-747-475, which arrives at Calgary from Beijing just in time for a celebratory news conference.
In addition to aircraft, the new look will appear on over 1,900 customer promotions, from cargo trucks to ticket jackets and frequent flyer cards. Canadian also has a new uniform collection designed by Canadian Brian Bailey to complement the new look is to be shown for the first time on January 14.
A severe winter storm hits Toronto on the evening of January 14, forcing the airline, together with Canadian Regional Airlines, Ltd., to cancel over 30 departures, to say nothing of the Bailey uniform show. Additional manpower is laid on at Montreal, Calgary, and Vancouver to accommodate customer inquiries. Blizzard conditions continue at Toronto the next day forcing the two carriers to cancel all of their departures. The situation returns to normal by January 17.
The delayed showing of the carrier’s new uniforms is rescheduled and held on the evening of January 19 at the opening of the airline’s new domestic departure lounge at Toronto. Over 100 separate pieces have been designed by the Alberta-born Bailey for the carrier’s 12,000 uniformed employees, including flight attendants, pilots, concierges, cargo handlers, baggage handlers, reservations and check-in personnel, and others.
The “OneWorld” global alliance is formally implemented on February 1 with American Airlines British Airways, Ltd. (2), Cathay Pacific Airways (Pty.), Ltd., and Qantas Airways (Pty.), Ltd.
On the evening of February 8 in Vancouver, Canadian illuminates one of the largest signs in Canada with the help of three generations of the company family, headed by retired Capt. Robert Randall Jr., 90. His Canadian Airlines aviation family includes three sons and two grandsons who are all current or retired pilots. The new 4.5-ton sign displays the new “Proud Wings” logo using over 4 miles of neon. It is made of aluminum and measures 56-ft. high by 105-ft. wide, and features the word “Canadian,” which has been created in canvas and measures 117-ft. The sign is visible in the night sky from two miles away.
On February 16, it is announced that Canadian will place its code on Alitalia, S. p.A.’s nonstop roundtrips between Milan and Toronto five times a week beginning on June 1.
On March 11, the Allied Pilots Association respond to Canadian’s request to Canada’s Department of Transport to consider relaxing the restriction that limits foreign ownership to 25%. The statement notes the union’s opposition to any increased ownership of the Canadian carrier by AMR Corporation, parent of American Airlines. The AA pilots had not been in favor of the original investment.
In conjunction with its “OneWorld” code-share partner British Airways, Ltd. (2) , the airline, on March 28, begins daily dual-designator return flights from Toronto to Moscow via London (LHR).
When the code-sharing agreement with Alaska Airlines and Horizon Air takes effect on April 1, the three companies begin to participate in each other’s frequent flyer programs and begin code-sharing on routes between Vancouver, Seattle, and numerous cities across the western U. S. and Canada.
Daily nonstop B-737-275A roundtrips commence on April 4 between Edmonton and Chicago (ORD) and is the only nonstop service between the two cities.
The same day, the carrier’s code-sharing agreement with Japan Air Lines Company, Ltd. (2) is expanded from two to four daily flights between Vancouver and Tokyo (NRT). This new service brings the number of nonstops offered by the two airlines from Vancouver to Tokyo and Nagoya to 42 each week.
In conjunction with code-sharing partner Canadian North, thrice-weekly B-737-275C roundtrips begin on April 6 linking Ottawa with Iqaluit in the Northwest Territories. Plans are announced to double the schedule in October.
On April 23, the company closes the sale and lease-back of 2 DC-10-30s to San Francisco-based Pegasus Aviation. The Douglas wide-bodies are being replaced by a pair of leased B-767-300ERS due to arrive in midyear. Two more B-767-300ERs will be received during the fourth quarter to replace another pair of DC-10-30s, which, again under a sale lease-back deal, will depart the fleet in early 2000.
The company adds three Asian languages to its already bilingual World Wide Web site on April 30, becoming the first airline in Canada to offer multilingual online services for all of its customers.
Despite this technological achievement, the company continues to struggle financially. On May 3, its stock is down from C$5 per share a year ago to just C$1.75. The next day, the airline reports that its quarterly revenues are up 4.4% to C$704 million from C$674 a year earlier. The boost is due to strong traffic between Canada and the U. S. as well as improvements in Asian business.
The good news quickly turns gloomy as operating costs of C$806 million are shown. Thus there is a first quarter operating loss of C$102 million, compared to C$62 million a year earlier. The net loss of C$108 million ($74.1 million), while less than expected, follows a C$150-million fourth quarter loss.
Even as the airline seeks a capital infusion, the amount of its cash on hand at the end of the three months (a large concern to analysts) is C$101 million, compared with C$55 million at the end of March 1998.
Meeting with other “OneWorld” CEOs at Vancouver on May 14, Chairman Kevin Benson indicates to reporters that his carrier is making progress on required operational restructuring. Canada’s second-largest airline is focusing on its troubled short-haul business and hopes to have a plan to stem losses in hand within a few months, one which can be presented to equity markets by late fall.
Canadian and American Airlines become, on June 17, the first airlines to implement technology allowing two carriers to issue electronic interline tickets on each other.
CEO Benson informs the company’s annual meeting at Calgary on June 29 that their carrier has been in discussions, requested by the government, with Air Canada, Ltd. concerning the possibility of dividing the two carrier’s weak domestic routes rather than competing over them. Although no agreements are reached, discussions are scheduled to resume in October.
Following a C$17.8-million second quarter loss (C$124 million for the first half), Canadian, in July, announces plans to cut passenger capacity by 7%, using aircraft smaller than DC-10s in a number of markets. Although voices are raised for government assistance, ministers in Ottawa make it known that none will be forthcoming.
Still, there are other possibilities to keep the airline aloft. At a news conference on August 13, Transport Minister David Collenette and Industry Minister John Manley announce an Order-in-Council, pursuant to Section 47 of the Canada Transportation Action. The edict will relax competition rules for 90 days in order to allow Canadian and Air Canada to discuss a possible corporate restructuring plan. Press speculation of the outcome of such a plan range from domestic route sharing to a takeover of Canadian international routes by Air Canada, to a full-blown merger with the Montreal-based major.
On August 23, Air Canada, Ltd. offers to purchase Canadian’s profitable international routes, along with certain associated assets and liabilities, and to offer Canadian passengers code-sharing opportunities on its international routes. The arrangement guarantees transfer of Canadian personnel associated with international operations, liquidity, and continued maintenance of company headquarters at Calgary. Competition on domestic routes would be maintained. The exact monetary terms are kept confidential. Canadian rejects the bid within hours of its receipt, fearing that its acceptance would reduce it to a domestic-only airline.
The stakes are raised once again on August 24. After some days of speculation in the Canadian press, Gerald Schwartz, CEO of Toronto-based Onex Corporation, a buyout specialist that also operates Lantic Sugar, Ltd. and the airline catering company Sky Chefs, comes forward at Montreal with an ambitious plan to purchase and merge both airlines. Indeed, an accommodation is quickly gained and approved by Canadian Airlines under which Onex would purchase it.
Under the Onex scheme, valued at C$5.7 billion ($3.81 billion), a new concern, AirCo, would be created. Shareholders in Canadian Airlines are to be paid C$2 cash or 0.2424 common share of AirCo for each of their common stock. Shareholders in Air Canada, Ltd., when given the chance, will be offered C$8.25 cash or one AirCo share for each of their common stocks. Retaining the name Air Canada, the enlarged Canadian operator would retain headquarters in Montreal.
For its part, Onex, according to Schwartz, will invest C$1.2 billion in AirCo. Of this amount, the corporation will invest C$475 million, including C$225 million financed by a loan from AMR Corporation, parent of American Airlines, while AMR itself will put in C$275 million in AirCo equity and convertible debt. In addition, both concerns will join together in investing a further C$250 million in AirCo debts and warrants. When the paperwork is finished, Onex will own a 31% stake, AMR 14.9%, and public shareholders, 54% or the majority. Key to this venture will be a shift of the reformed Air Canada away from its membership in the “Star Alliance” and into the AA-dominated “OneWorld” international grouping. AA would also provide reservations and accounting systems for the single carrier. Efficiencies would be gained by the elimination of 5,000 jobs, as well as other cost-cutting measures such as route consolidations.
The offer is to be sent to both airlines by certified mail within two weeks and will expire on November 8. In 1995, Onex made a hostile takeover attempt on John Labatt, Ltd., which it eventually lost.
The Onex bid, viewed as “unsolicited” and “below-market” in value, is not welcome at Air Canada, Ltd., and officially says so in a press release on August 27. Meanwhile, Air Canada President/CEO Robert Milton, in a message to employees also on August 24, indicates that other bids and counteroffers may be expected. Initial responses from shareholders and analysts are surprise and caution.
Figuratively speaking, the stadium is filled in anticipation when the contest, on August 25, begins to take on the trappings of the first international alliance dual. Speaking on behalf of the “Star Alliance,” Deutsche Lufthansa, A. G. announces that the grouping will do everything reasonable to maintain the presence of Air Canada “in the team for the sake of our customers and fair competition.”
At midday on August 26, the three airlines involved plus Onex agree on one point; they will exercise a vow of silence until their business is completed.
On August 31, the Air Canada, Ltd. board of directors adopts and announces shareholders’ rights plan designed to give the carrier time, beyond November 8, to consider alternatives. Under the plan’s “poison pill” provisions, should any bidder not approved by the company board attempt a takeover (by purchasing more than 10% of Air Canada’s common stock), shareholders will receive one share of new stock for each one they already own, thereby diluting the bidder’s airline stake. The directors also call for a special shareholders meeting on January 7 to consider proposals. The move is immediately protested by Onex and the company files suit in court to force a meeting on or before November 8.
Analysts immediately express concern that the Air Canada, Ltd. move will delay a buyout long enough for Canadian Airlines to go bankrupt, at which point there will be nothing left of Onex Corporation to merge. In this way, the present Air Canada will remain intact, and Canadian assets, particularly long-haul routes, will be available for purchase. Both national political parties, the ruling Liberal and the opposition Reform, now enter the picture, debating the merits of extending the 90-day waiver of competition rules.
The Canadian Transport Ministry indicates, on September 2, that it will not grant an extension of the 90-day limit. Simultaneously, the leadership of the International Association of Machinists and Aerospace Workers (IAM) indicates that its 18,500 members at the two major airlines and airline service companies will stage an illegal strike on September 27 unless Ottawa guarantees no jobs will be lost in an Onex deal.
A new code-share service begins with Cathay Pacific Airways (Pty.), Ltd. on October 31, with Canadian placing its code on Cathay services from Hong Kong to Vancouver and to Toronto.
On November 6 a Quebec court rules on a case filed by Air Canada, Ltd. that the hostile takeover bid by Onex Corporation, which is supported by Canadian Airlines and American Airlines, violates the 10% individual limit rule on Air Canada share ownership. The stipulation had originally been written into Air Canada’s 1988 privatization document to guarantee diverse ownership. Onex Chairman Schwartz, having been proven wrong in his assumption that the government would quickly change the provision, is forced to end his acquisition attempt.
Air Canada, Ltd. now makes a C$92 million offer to take over Canadian, but this move is resisted by Canadian CEO Benson, who is receiving credits from American Airlines, which really does not want to loose its “OneWorld” partner. Analysts, including Transport Minister Collenette, now predict that Canadian will soon be acquired by its rival and planning for Canada’s post-merger skies begins.
The company’s long effort to avoid failure ends on December 4 when its board votes to accept Air Canada’s C$92 million ($63 million) buyout. On December 23, Canadian stockholders agree to sell their outstanding shares; the same day, an agreement is facilitated with American Airlines under which the Dallas (DFW)-based major will sell its Canadian shares to AC for $59 million.
Customer boardings during these tumultuous 12 months fall 6.5% to 7.799,000, although cargo traffic rises 5% to 714.1 million FTKs. Revenues are up 2.9% to C$3.26 billion as are expenses, which rise 6.6% to C$2.34 billion. The operating loss quadruples to C$97.67 million while the net loss nearly doubles, reaching C$222.3 million.
The workforce stands at 16,807 at the beginning of 2000, a 5% increase. Acquisition of the American Airlines and Canadian Airlines shares by Air Canada, Ltd. occurs on January 4. The company in January begins intense negotiations with its creditors in an effort to restructure its C$3.5-billion debt; responses are positive. The federal Competition Bureau simultaneously orders the sale of the Canadian Regional Airlines, Ltd. subsidiary but grants permission for its integration into the Air Canada commuter network if it is not sold by August 30.
Service from Toronto to Boston is suspended on February 6, although the Vancouver to Boston route is maintained.
In a joint ceremony at Toronto on February 9, 60 AC and CAI employees roll out the first Canadian jetliner to be painted in modified AC colors. Reliveried, the B-767-375ER wears Canadian titles, with the famous goose logo shown in smaller format behind the titles.
Seconded over from Air Canada, Ltd., its executive vice president, Paul Brotto, succeeds Kevin Benson as chief operating officer on February 29; Benson remains a Canadian board member.
On March 14, American Airlines confirms that it has received word that Canadian Airlines will depart the “OneWorld” alliance on June 1. Air Canada is a member of the rival “Star Alliance.”
Also in March, ALPA-represented pilots reach agreement with Air Canada on a new five-year contract with major pay increases. Late in the month, Canadian seeks and receives bankruptcy protection from its U. S. and Canadian creditors as it seeks to restructure C$3.5 billion ($2.4 billion) in debt.
Despite the carrier’s administrative position, it is still permitted to launch new services. On April 3, daily B-737-200 nonstop roundtrips are started from Edmonton to Los Angeles and Montreal; both routes are code-shared with Air Canada, Ltd.
By April 15, Canadian has reached agreement with 90% of its aircraft creditors concerning the restructuring of its debt towards aircraft leases. The company’s reorganization plan receives internal approval on April 21 and is forwarded to an Alberta court for approval on April 24.
Afirst quarter loss of C$255.9 ($173.1 million) is reported on May 5, a figure worse than that provided for the same period a year earlier.
AC and Canadian announce on May 19 that the two will end their code-sharing arrangements with American Airlines on or before October 1. Canadian and American had been partners for a decade.
Employing the B-767-375ER unveiled February 9 in revised colors, the company on July 2 resumes a daily service from Toronto to Sydney via Vancouver and Honolulu.
Financial restructuring of Canadian is completed on July 4, on which date CEO Milton announces the reorganization of Air Canada into five main divisions. In anticipation of the year end completion of the two airlines’ integration, the pair jointly indicate next day that the Canadian Plus loyalty program will be merged into Air Canada’s Aeroplan on January 1.
Canadian, on July 7 becomes an indirect, but wholly owned Air Canada, Ltd. subsidiary. At this point, Air Canada, Ltd. is permitted to actually place Canadian’s regional subsidiary up for sale.
During the summer, the three Air Canada, Ltd. regionals, Air BC, Ltd., Air Nova, and Air Ontario take a major step towards their consolidation into a single unit when a head office for a joint carrier is established in Halifax and a western hub at Calgary. Having failed to find a buyer, AC is permitted to take over Canadian Regional Airlines, Ltd. on August 30 and add that feeder into its regional airline consolidation process. When the integration process is completed at year’s end, it is anticipated that the (as yet) unnamed airline will be one of the largest regional airlines in the world, with over 5,000 employees and some 135 aircraft, mostly Dash-8 turboprops.
An important foreign blessing of the majors’ merger is received on August 31 when the British Competition Commission, ruling in response to complaints from other airlines, approves the takeover and agrees to allow Air Canada, Ltd. to retain all of its important London (LHR) landing slots.
Technical problems prevent Canadian’s conversion to the Air Canada, Ltd. reservations system as scheduled on October 1; the use of two different reservation systems continues to cause problems for passengers. Meanwhile, operational and service problems caused by the merger process cause additional frustrations for passengers, who complain in record numbers.
Flight CP096 to London (LHR) on October 8 is the last Canadian international service to be flown from Calgary.
Plagued with a barrage of service complaints, Air Canada, Ltd. officials now move to speed up integration of the operations of both carriers. By October 15, just fewer than 200 employees remain at Canadian’s Calgary headquarters and it is anticipated that the flying goose corporate symbol will disappear from the aviation landscape in 2001.
When the winter schedule, coordinated with Air Canada, Ltd., begins on October 30, the two add new B-737-375ER roundtrips from Vancouver to New York (JFK); nine additional domestic nonstop services begin the next day.
New B-737-375ER flights, coordinated with Air Canada, Ltd., commence on December 10 from Calgary to Honolulu.