INDEPTH: AIR CANADA|
Air Canada Timeline
CBC News Online | June 20, 2005
June 18, 2005
Air Canada cancels $6-billion US Boeing aircraft order after pilots refuse to ratify agreement on terms to fly the new jets.
April 25, 2005:
Air Canada's parent company announces plans to upgrade its fleet with 36 Boeing 777 and 60 Boeing 787 Dreamliner aircraft.
March 29, 2005:
Air Canada's maintenance wing signs a $300-million agreement with Delta Air Lines to maintain part of the company's fleet. The deal could bring 300 jobs to its Vancouver maintenance centre.
Feb. 15, 2005:
The Canadian Transportation Agency accuses Air Canada of avoiding dealing with human rights complaints against the company during its bankruptcy protection.
Jan. 19, 2005:
A four-hour labour dispute by ground crews at Toronto's Pearson International Airport forces Air Canada to cancel at least 19 flights.
Jan. 14, 2005:
The company lays off about 180 maintenance workers in Vancouver, Winnipeg and Montreal.
Dec. 15, 2004:
Montie Brewer is appointed president and CEO of Air Canada.
Oct. 4, 2004:
Air Canada's shares begin trading again on the TSX.
Sept. 30, 2004:
Air Canada emerges from 18 months of bankruptcy protection.
Sept. 8, 2004:
Air Canada's discount division, Zip, is shut down and the main company takes over its routes and most of its employees.
Aug. 23, 2004:
An Ontario Superior Court judge approves Air Canada's plan to emerge from bankruptcy protection.
Aug. 12, 2004
Air Canada announces a new board of directors, which will oversee the airline once it emerges from bankruptcy protection.
Aug. 11, 2004
Air Canada says it will be ready to emerge from bankruptcy protection on Sept. 30, after resolving some financial disputes with its unions.
Aug. 3, 2004
WestJet president Clive Beddoe apologizes over accusations of corporate spying on Air Canada.
July 22, 2004
Air Canada seeks $220 million in damages from WestJet, stemming from its accusations that WestJet executives tapped into an Air Canada employee database to obtain flight and scheduling information.
July 15, 2004
The union representing the flight attendants for the Jazz division of Air Canada ratifies a cost-cutting labour deal with the airline. The union was the last holdout on the deal, already approved by the unions for Air Canada's other employees.
July 9, 2004
Air Canada accuses WestJet executives of spying by secretly tapping into an internal employee website and stealing confidential information. WestJet doesn't deny that it used the internal Air Canada database. The vice-president of strategic planning for WestJet would later resign.
June 24, 2004
Air Canada announces that Cerberus Capital Management LP of New York plans to buy $250 million in new Air Canada stock. The investment completes the airline’s refinancing plan, the first step towards emerging from bankruptcy protection.
May 21, 2004
Air Canada wins a four-month extension of its court-ordered creditor protection, a day after the airline reached a tentative cost-cutting deal with the Canadian Auto Workers. The CAW was the last of the airline's unions to agree to cost-saving measures.
May 19, 2004
Air Canada declares an impasse in its talks with the Canadian Auto Workers. The airline says the union's position has not moved enough to warrant more discussions. The two sides are unable to agree on the issue of wage rollbacks. The union says the airline's proposal would cost $10,000 per worker, many of whom make between $35,000 and $49,000 per year. CAW president Buzz Hargrove insists his position will not sink the airline.
May 16, 2004
Air Canada and six of its unions reach tentative agreements to cut payroll in an effort to save the airline.
April 26, 2004
Deutsche Bank AG submits an offer to save Air Canada. Under the Deutsche Bank deal, the German company agrees to underwrite a $850-million rights offering to Air Canada creditors. That was up from a previous agreement to back a $450-million rights issue.
Deutsche Bank asks the federal Office of the Superintendent of Financial Institutions (OSFI) to allow Air Canada to pay off its pension shortfall of more than $1 billion over 10 years instead of the normal five-year repayment.
The OSFI agrees to that request on May 14, subject to approval by the finance minister.
April 2, 2004
Trinity Time Investments, Air Canada's would-be new equity partner, says it will not go ahead with its $650-million investment in Air Canada, making good on an earlier threat to walk away if unions did not agree to more concessions.
Trinity Time says it did not rule out getting involved in Air Canada's restructuring in the future "if circumstances change sufficiently."
Just after the Trinity Time announcement, Air Canada releases its 2003 financial results, which show the airline had a net loss of $1.87 billion in 2003.
March 29, 2004
Ontario court judge extends Air Canada's court-ordered creditor protection to April 15, giving the company, its unions and its new investor time to work out a deal on employee pensions.
March 17, 2004
Trinity Time Investments says it is thinking of walking away from its $650-million equity investment in Air Canada, blaming "union intransigence" over the contentious issue of pensions.
Feb. 19, 2004
Air Canada and representatives of its employees and pensioners reach a deal on the contentious issue of funding the $1.2 billion shortfall in the pension plan. However, Li's Trinity Time Investments says it is "absolutely adamant" that the unions accept changes to pension plans to reduce the financial obligations on the airline.
Jan. 18, 2004
An Ontario Superior Court judge approves Air Canada's financial rescue package. The court approves an agreement that will see Victor Li's Trinity Time Investments inject $650-million into Air Canada in return for a 31-per cent equity stake in the airline.
Dec. 4, 2003
Air Canada announces it has chosen Hong Kong-based businessman Victor Li to be the airline's new equity partner – a major step in its eventual emergence from bankruptcy protection. Meanwhile, some of Air Canada's creditors ask a bankruptcy court to allow Cerberus Capital Management to make another bid for the troubled airline, saying its revised proposal seems to offer them a better deal than the Trinity Time Investments proposal Air Canada has chosen.
Aug. 07, 2003
Stung by the fallout from SARS and the Iraq war, Air Canada reports it lost $566 million in the second quarter of the year.
June 30, 2003
Air Canada pilots approve cost-cutting deal which sees 317 jobs cut, as well as 15 per cent pay cut for those who remain.
May 26, 2003
Air Canada, CAW reach cost-cutting deal saw 400 workers lose their jobs and the possibility of another 400 cuts on the horizon.
April 1, 2003
Air Canada files for and is granted creditor protection to make way for major restructuring and cost-cutting.
Mar. 20, 2003
Citing a continued downturn in air travel, Air Canada announces it is slashing 3,600 jobs.
Feb. 6, 2003
After posting $428-million annual loss, Air Canada approaches its unions to talk about ways of cutting $650 million in labour costs from its 35,000 employee workforce.
Dec. 11, 2002
Air Canada announces it will stop issuing paper tickets for domestic flights starting in 2003.
Sept. 7, 2002
Air Canada cuts service to a number of money-losing Maritime routes.
Apr. 19, 2002
Air Canada unveils 'Zip', a new western discount carrier.
Feb. 7, 2002
Air Canada reports its biggest-ever annual loss – $1.25 billion – as it struggles through what CEO Robert Milton called an "extraordinarily difficult" time for airline companies.
Mar. 27, 2002
After grounding regional carriers Air Ontario, AirBC, Air Nova and Canadian Regional, Air Canada launches Jazz, a new discount airline.
Oct. 10, 2001
In an effort to capture a greater swath of the market, Air Canada launches 'Tango,' a new discount service
Sept. 26, 2001
Suffering from a severe downturn in air travel, Air Canada chops another 5,000 jobs and grounds 84 planes
Sept. 19, 2001
Air Canada asks for $4 billion in aid from Ottawa
Sept. 11, 2001
All Canadian flights cancelled in wake of attacks on U.S. targets.
July 27, 2001
Air Canada is ordered to cough up more than $1 million as part of a settlement with securities regulators after the airline told selected analysts about lower profits before making the information public.
July 4, 2001
Seeking to cut its payroll costs, Air Canada is asking its employees to take a leave of absence or voluntarily work reduced hours.
March 8, 2001
Federal regulators have ordered Air Canada to almost halve the lowest return fares on one of its routes, calling them "unreasonable".
Feb. 2, 2001
Air Canada reports a fourth-quarter loss of $274 million, saying it suffered from the soaring cost of jet fuel and a slowdown in travel that has it bracing for more stormy weather ahead.
Dec. 22, 2000
Air Canada issues profit warning and cuts 3,500 jobs.
Aug. 30, 2000
With no other parties interested, Canadian Regional Airlines becomes part of Air Canada.
April 4, 2000
Air Canada begins to combine its schedule with Canadian Airlines.
Dec. 23, 1999
Air Canada officially wins its bid for Canadian, after receiving more than half of Canadian's shares and striking a deal with American Airlines for its 25 per cent stake in Canadian.
Dec. 21, 1999
The Federal Competition Bureau says it will allow Air Canada's takeover of Canadian if the airline meets certain conditions. Air Canada agrees to surrender some peak-hour runway slots at Toronto's Pearson Airport, sell Canadian Regional Airlines and maintain service to all current domestic routes.
Dec. 8, 1999
Air Canada takes control of Canadian Airlines with more than 50 per cent of Canadian shares tendered.
AMR Corp. agrees to sell its convertible preferred shares in Canadian Airlines to Air Canada for between $55 to $60 million. The two also reach an agreement on American Airlines' relationship with Canadian: allowing codesharing between the two airlines and maintaining a joint frequent flyer program.
Dec. 7, 1999
The Air Canada offer expires at 5 p.m. ET. Air Canada extends the buyout until Dec. 23.
Dec. 4, 1999
Board of Canadian Airlines recommends Air Canada's $92 million bid to its shareholders, after failing to come up with a better alternative from its Oneworld partners.
Nov. 27, 1999
InterCanadian, a regional partner of Canadian Airlines cancels all flights with no warning or explanation.
Nov. 24, 1999
International Association of Machinists and Aerospace Workers signs deal with Air Canada to protect 6,000 Canadian employees from lay-offs and relocations if the deal goes through.
Nov. 16, 1999
Robert Deluce and Regional Airlines Holdings Inc. proposes to buy and merge Canada's regional carriers: Air Ontario, Air Nova, Air B.C., and Canadian Regional Airlines.
Nov. 9, 1999
Canadian Airlines says it has enough money to last at least another year after receiving assurances from AMR-- American Airlines parent-- that it can defer payments on fees owed to American.
Nov. 8, 1999
Transport Minister David Collenette says he expects Air Canada to take over Canadian Airlines.
Nov. 5, 1999
Onex withdraws its offer, Air Canada says it will press ahead with bid to take over Canadian Airlines.
Nov. 5, 1999
Quebec judge says Onex offer illegal, breaking law which limits single shareholder in Air Canada to 10 per cent.
Nov. 2, 1999
Air Canada raises the stakes, offering $16 a share to buy back 36.4 per cent of the airline.
Nov. 1, 1999
Canadian Auto Workers union president Buzz Hargrove announces support for Onex bid after receiving job guarantees.
Oct. 19, 1999
Air Canada, backed by Lufthansa, United Airlines and CIBC, unveils a $930 million counterbid to the Onex offer. Air Canada offers $92 million for Canadian Airlines but says it would run its rival as separate company.
Sept. 24, 1999
Canadian Airlines CEO Kevin Benson says Air Canada and Canadian held merger talks earlier in the year, but Air Canada backed out.
Sept. 18, 1999
Schwartz accuses Air Canada of a smear campaign against his hostile bid for the carrier and calls on Ottawa to hold parliamentary hearings.
Sept. 17, 1999
Air Canada reports early its strong financial results, to show shareholders before they make decisions on industry restructuring.
Sept. 13, 1999
Air Canada asks Federal Court to rule that Onex's bid isn't exempt from a review under Competition Act.
Sept. 2, 1999
18,500 airline employees say they'll strike Sept. 27 if the government doesn't guarantee there will be no forced job losses in airline restructuring.
Aug. 31, 1999
Air Canada adopts a poison pill aimed at thwarting a takeover. It schedules a shareholders meeting for Jan. 7 to consider Onex's offer and others that might arise. Onex asks court to force Air Canada to hold shareholders meeting by Nov. 8, one day before its offer expires.
Aug. 24, 1999
Onex announces plan. It involves Onex, backed by American Airlines parent AMR Corp., paying $1.8 million and assuming $3.9 billion in debt. Canadian said it would recommend the offer to its shareholders.
Aug. 20, 1999
Air Canada proposes to buy Canadian Airlines' international routes. It's rejected.
Aug. 13, 1999
Ottawa suspends Competition Act to let the airlines legally talk about restructuring.
Ottawa deregulates flights between Canada and the United States.
The North American recession hits the travel industry hard. Passenger traffic drops dramatically and the two major airlines are each losing more than a million dollars a day.
In an attempt to return to profitability, Air Canada grounds its fleet of freighters, sending the courier business into turmoil, and lays off more than 2,000 employees.
At the same time, Air Canada sees this as a buying opportunity and proposes to merge the two airlines. After CAI accepts Air Canada's merger proposal, Air Canada starts to have doubts it can manage the combined $7.7-billion debt load and the deal dies.
CAI is suffering financially and its parent company PWA Corp. begins merger discussions with Air Canada.
Air Canada announces it will cut close to 3,000 jobs in an effort to reduce costs by $570 million.
Fears of terrorism in the Persian Gulf rock the markets and cause the international travel market to plunge.
Air Canada generates $400 million from trans-border routes while CAI generates $50 million.
The balance of Air Canada's shares are sold to the public. Under the 1987 Air Canada Public Participation Act, no individual or group of individuals can vote more than 10 per cent of the shares and foreigners collectively cannot own more than 25 per cent of the voting shares.
Air Canada is privatized in order to level the playing field between the two major airlines. Forty-three per cent of Air Canada's shares are sold to the public.
Air Canada introduces routes across the Atlantic to Glasgow, Manchester, London, Paris, Zurich, Dusseldorf, Munich, Geneva, Frankfurt, Bombay and Singapore. The airline starts cargo flights to Shannon and Brussels. It has a fleet of 113 aircraft, including five Boeing 747s, 16 L-1011, 36 Boeing 727s and 14 Boeing 767s. The Globe and Mail reports that Air Canada has 54 per cent of the domestic market based on revenue. CAI has about 30 per cent.
PWA changes its name to Canadian Airlines International Ltd. (CAI) The airline's parent company is PWA Corp.
PWA takes over Canadian Pacific Airlines.
Air Canada employs more than 22,000 and has sales and assets totalling close to $6 billion.
Alberta government privatizes Pacific Western Airlines.
Air Canada is reorganized under the Air Canada Act.
Air Canada's revenue is more than $500 million. Its fleet includes three Boeing 747s, eight extended DC-8s, 14 DC-8s, four cargo DC-8s, 36 DC-9s and 17 Viscounts.
Canada's Ministry of Transport defines where the five regional airlines can fly.
Jan. 1, 1965
Act of Parliament changes the name of Trans-Canada Air Lines to Air Canada.
Central BC Airways launches as a bush plane operation; eventually evolves to become Pacific Western Airlines.
April 1, 1939
Transcontinental passenger and mail routes introduced between Montreal/Toronto and Vancouver via North Bay, Kapuskasing, Winnipeg, Regina, Lethbridge and Edmonton.
The fleet consists of 12 10-passenger Lockheed 14Hs and six 14-passenger Lodestars.
Sept. 1, 1937
Scheduled flights begin, with passenger and mail service between Vancouver and Seattle, Wash. The fleet consists of one single-engine Stearman biplane and two 10-passenger Lockheed Electras.
April 10, 1937
The government passes an act establishing Trans-Canada Air Lines.