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| Air Canada |
| Annual revenues: | $10,469m | | Annual operating profit: | $458m | | Annual net profit: | $442m | | Operating profit margin: | 4% |
(Figures are from the period of JAN07-DEC07 in U.S. dollars.)
| Fleet: | | | Type | Number in Fleet | | A319-100 | 37 | | A320-200 | 41 | | A321-200 | 10 | | A330-300 | 8 | | A340-300 | 2 | | B767-200 | 8 | | B767-300 | 30 | | B777-200 | 7 | | B777-300 | 12 | | EMB170-200 | 15 | | EMB190-100 | 45 | | MD-11 | 2 | |
For more detailed fleet information, visit www.ch-aviation.ch
Strengths and opportunities:
- Thoroughly restructured its costs during bankruptcy after 9/11
- Lots of new widebody and regional planes on order, including B787s and B777-200LRs
- Canada's economy benefiting from energy boom
- Lots of outbound leisure travel to Europe in the summer and Florida/the Caribbean in winter
- Canada largely a duopoly
- Widespread access to giant U.S. market
- Large numbers of immigrants from around the world living in Canada
- Innovative simplified pricing structure with low distribution costs
- Key Star Alliance member; has joint venture with Lufthansa across the Atlantic
- New alliance with Continental (including a transatlantic JV) will boost revenues
- Benefiting from tough U.S. visa laws; some travelers prefer to reach Asia, Latin America or Europe via Canada
Weaknesses and threats:
- Strong labor unions, which hope to negotiate raises in 2009
- Some corporate customers who depend on global distribution systems dislike its approach to distribution
- Canada's economy highly exposed to U.S. recession
- High airport and air navigation fees
- Tough domestic and transborder competition from WestJet
- All those new planes aren't free; will need to use them to generate new revenue
Financial data is sourced from company reports. The strengths and weaknesses are based on an analysis by Airline Weekly's editors. Information provided on airlineweekly.com is for general informational purposes only and should not be construed as investment advice.
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