Business Case Studies, Gorwth Strategies Case Study, Troubled Times, Air Canada

print page
Tell A Friend
Bookmark
 

Case Categories

Growth Strategies Case Study

IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
Case Title:

Troubled Times at Air Canada

Publication Year : 2004

Authors: Shwetark Singh, Sumit Kumar Chaudhuri

Industry: Transportation

Region:Canada

Case Code: GRS0003

Teaching Note: Not Available

Structured Assignment: Not Available

Buy This Case Study
OR





Abstract:
Air Canada, which had remained Canada's dominant airline since 1930s, found itself in deep financial trouble with an income loss of $828 million in 2002. Events like the SARS outbreak in late 2002, coupled with the Iraq war in 2003, aggravated the financial difficulties of the cash starved airline. On April 1 st 2003, with an outstanding debt of $12 billion, Air Canada announced that it had filed for protection under the 'Companies' Creditors Arrangement Act'(CCAA) to facilitate its operational, commercial, financial and corporate restructuring. In late 2003, when Air Canada was in desperate need of cash inflow to come out of its bankruptcy, Victor Li, a wealthy businessman from Hong Kong bought a 31% stake in the airline through his company, Trinity Time Investments, for $650 million. Although Victor Li's involvement in Air Canada was looked upon with suspicion by many, Air Canada welcomed it as a necessary step to rejuvenate its beleaguered business.

Pedagogical Objectives:

  • To discuss how Air Canada transformed from being Canada’s dominant airline to become a cash-starved and beleagured business.

Keywords : Canadian Airways; Trans-Canada Air (TCA); Canadian Airlines; The National Research Council of Canada (CNR); Air Canada; Onex Corporation; PWA; Free market problem; Managing in Troubled Times Case Study; Deregulation of Canada's aviation sector; Companies' Creditors Arrangement Act (CCAA); Canadian Auto Workers (CAW); Canadian Union of Public Employees (CUPE); GE Capital; Victor Li; Trinity Time Investments

Contents : 
A Brief History of Air Canada
AIR CANADA- Turbulence in the Air
Companies’ Creditors Arrangement Act
After Bankruptcy
The Asian Connection
A Challenging Future
Comparison Of Air Canada’s Historical Data
Victor Li’s Business Empire

Recently Bought Case Studies

    Recently Bought Case Studies
advertisement

    Executive Interviews

  • David ConklinDavid Conklin

    David Conklin, is a professor at the Richard Ivey School of Business
    Speaks on Government and Business
  • Lord Meghnad DesaiLord Meghnad Desai

    Lord Meghnad Desai, is an Indian-born British economist and Labor politician
    Speaks on Government and Business
  • Vijay GovindarajanVijay Govindarajan

    Vijay Govindarajan, is widely regarded as one of the world’s leading experts on strategy and innovation
    Speaks on Reverse Innovation
  • View All Executive Interviews»






Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501 504, Andhra Pradesh, INDIA.
Mob: +91- 9640901313, Phone: +91 - 08417 - 236672, Fax : + 91 - 08417 - 236674
E-mail: casehelpdesk@ibsindia.org

©2003-2010 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap