Issue: The new Air Canada, comprising Air Canada and Canadian Airlines is the 11th largest air carrier in the world with over $10 billion in revenues, some 39,000 employees, and 365 aircraft. This new carrier will serve more than 80% of the domestic traffic, the combined total traffic that Air Canada and Canadian Airlines once competed for. While the consolidation of the two airlines prevented the bankruptcy of Canadian Airlines and the loss of many jobs, there are public concerns about competition in Canada’s domestic airline industry which could affect prices, safety, and the level of services for air travellers, particularly those from smaller communities. There are also concerns that many sectors of the economy that provide products and services to the airlines will also be affected. In late 1999, the federal government launched an initiative to address the public's concern about the possible impact from the major airline restructuring in Canada. For more information and a complete history visit: Transport Canada The Canada Transportation Agency Air Canada CBC News on-line |