Parla il CEO di Air Canada all'indomani della pubblicazione dei risultati poco entusiasmanti relativi al 2008 (perdite nette per 1.03 miliardi di dollari canadesi) conseguiti dalla sua compagnia.
Cortesia ed efficienza nel servizio le strategie principali per riportate AC sulla giusta strada e per consolidare la market share nei confronti della rivale westjet in continua ascesa negli ultimi anni (importanti anche i recenti accordi siglati con AF-KL e Cathay).
Air Canada pins success on service
BRENT JANG
From Wednesday's Globe and Mail
February 17, 2009 at 11:42 PM EST
Air Canada [AC.A-T] is becoming increasingly worried about the ascent of WestJet Airlines Ltd. [WJA-T], assigning chief operating officer Bill Bredt to deliver cross-country pep talks urging staff to improve customer service amid competitive threats and the recession.
Calgary-based WestJet held 36 per cent of domestic market share last fall, compared with Air Canada's 57 per cent, and has been making steady gains in recent years. WestJet is striving to capture 45 to 50 per cent of Canadian seat capacity within five years.
"There is only one way for them to achieve that goal, and it is to take share away from us. It's up to all of us to make sure that doesn't happen," Air Canada chief executive officer Montie Brewer said in a three-page message to employees. "The most important factor in determining our future success is customer service. This will be the battleground this year and in the years ahead."
He issued a call to arms, directing Mr. Bredt to oversee "this renewed customer focus" following recommendations from an internal review into how the Montreal-based carrier responded after winter storms led to widespread cancellations and delays over Christmas.
"We have a superior product and fuller network and now we need to ensure that we give each customer caring, friendly service consistently — in all areas — in call centres, at the airport, in flight and dealing with any follow-up issues — to ensure that Air Canada customers remain Air Canada customers," Mr. Brewer said.
While the airline is pleased with its strong "load factor," the proportion of seats filled by paying customers, "there are limits to capacity tightening as we do not want to cede market share to our competitors by cutting too deeply," he said. Air Canada plans to reduce its domestic seat capacity by 3 to 4 per cent this year, while WestJet expects to expand by 5 per cent.
Some analysts are warning that money-losing Air Canada could be forced to file for bankruptcy protection again, although it has averted a cash crunch for now with more than $640-million in new borrowing arrangements. The company filed for creditor protection in April, 2003, and spent 18 months restructuring.
And while other industry observers say Air Canada should survive its challenges, its class B stock fell to an intraday low yesterday of $1.25, matching its record low in mid-December.
The carrier may have to sell its ground-handling unit, vacations division, real estate or even slots at London Heathrow airport, said National Bank Financial analyst David Newman, who lowered his 52-week target price on Air Canada to $1 from $4.50.
"It will be extremely tight financially," because Air Canada's cash reserves of $1-billion will likely be sharply lower this summer, raising the possibility that credit card payments will be withheld from the airline due to a breach of cash covenants, Mr. Newman said. Tough contract talks with angry unions further cloud the outlook, he said.
The airline's balance sheet at the end of December listed $1.33-billion in liabilities from advance ticket sales and $4.7-billion in long-term debt and capital leases.
Raymond James Ltd. analyst Ben Cherniavsky and UBS Securities Canada Inc. analyst Fadi Chamoun caution that lower fuel prices may not offset rising expenses, such as funding the pension deficit.
Air Canada is under pressure because of its $3.2-billion pension fund solvency deficit, which "puts us at a competitive disadvantage with other carriers who do not face the same high pension funding obligations that we do," Mr. Brewer said in his internal memo.
Air Canada reported Friday that it lost $1-billion last year.
"It is small comfort that our loss was the result of factors outside of our control — soaring oil prices, foreign exchange losses due to a drop in the Canadian dollar, and the slowing economy," Mr. Brewer said.
-reportonbusiness-
Cortesia ed efficienza nel servizio le strategie principali per riportate AC sulla giusta strada e per consolidare la market share nei confronti della rivale westjet in continua ascesa negli ultimi anni (importanti anche i recenti accordi siglati con AF-KL e Cathay).
Air Canada pins success on service
BRENT JANG
From Wednesday's Globe and Mail
February 17, 2009 at 11:42 PM EST
Air Canada [AC.A-T] is becoming increasingly worried about the ascent of WestJet Airlines Ltd. [WJA-T], assigning chief operating officer Bill Bredt to deliver cross-country pep talks urging staff to improve customer service amid competitive threats and the recession.
Calgary-based WestJet held 36 per cent of domestic market share last fall, compared with Air Canada's 57 per cent, and has been making steady gains in recent years. WestJet is striving to capture 45 to 50 per cent of Canadian seat capacity within five years.
"There is only one way for them to achieve that goal, and it is to take share away from us. It's up to all of us to make sure that doesn't happen," Air Canada chief executive officer Montie Brewer said in a three-page message to employees. "The most important factor in determining our future success is customer service. This will be the battleground this year and in the years ahead."
He issued a call to arms, directing Mr. Bredt to oversee "this renewed customer focus" following recommendations from an internal review into how the Montreal-based carrier responded after winter storms led to widespread cancellations and delays over Christmas.
"We have a superior product and fuller network and now we need to ensure that we give each customer caring, friendly service consistently — in all areas — in call centres, at the airport, in flight and dealing with any follow-up issues — to ensure that Air Canada customers remain Air Canada customers," Mr. Brewer said.
While the airline is pleased with its strong "load factor," the proportion of seats filled by paying customers, "there are limits to capacity tightening as we do not want to cede market share to our competitors by cutting too deeply," he said. Air Canada plans to reduce its domestic seat capacity by 3 to 4 per cent this year, while WestJet expects to expand by 5 per cent.
Some analysts are warning that money-losing Air Canada could be forced to file for bankruptcy protection again, although it has averted a cash crunch for now with more than $640-million in new borrowing arrangements. The company filed for creditor protection in April, 2003, and spent 18 months restructuring.
And while other industry observers say Air Canada should survive its challenges, its class B stock fell to an intraday low yesterday of $1.25, matching its record low in mid-December.
The carrier may have to sell its ground-handling unit, vacations division, real estate or even slots at London Heathrow airport, said National Bank Financial analyst David Newman, who lowered his 52-week target price on Air Canada to $1 from $4.50.
"It will be extremely tight financially," because Air Canada's cash reserves of $1-billion will likely be sharply lower this summer, raising the possibility that credit card payments will be withheld from the airline due to a breach of cash covenants, Mr. Newman said. Tough contract talks with angry unions further cloud the outlook, he said.
The airline's balance sheet at the end of December listed $1.33-billion in liabilities from advance ticket sales and $4.7-billion in long-term debt and capital leases.
Raymond James Ltd. analyst Ben Cherniavsky and UBS Securities Canada Inc. analyst Fadi Chamoun caution that lower fuel prices may not offset rising expenses, such as funding the pension deficit.
Air Canada is under pressure because of its $3.2-billion pension fund solvency deficit, which "puts us at a competitive disadvantage with other carriers who do not face the same high pension funding obligations that we do," Mr. Brewer said in his internal memo.
Air Canada reported Friday that it lost $1-billion last year.
"It is small comfort that our loss was the result of factors outside of our control — soaring oil prices, foreign exchange losses due to a drop in the Canadian dollar, and the slowing economy," Mr. Brewer said.
-reportonbusiness-
