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Robert says it's official


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That's very good of him!!

LCCs 'officially' a global phenomenon, Air Canada chief says

Dateline: Tuesday March 30, 2004

With the emergence of AirAsia in Malaysia, the anticipated launch of Tiger Airways in Singapore and a budget airline in the Czech Republic, "the low-cost model is now officially a worldwide phenomenon," Air Canada President and CEO Robert Milton said yesterday.

Speaking to the International Society of Transport Aircraft Trading's 21st annual conference in Hollywood, Fla., Milton also said the industry is reaching "the second stage of the low-cost revolution" as legacy network airlines adapt or risk perishing. For AC, which faces budget airline competition across its entire domestic network, the "only place to go is low costs," he declared.

AC expects to emerge from bankruptcy reorganization later this year having shed more than C$2 billion ($1.53 billion) in costs with a new business model that includes major changes to its fleet, scheduling and pricing.

Milton also appeared to confirm that the Tango low-fare unit will be deemphasized as a separate brand of the airline now that AC has overhauled its fare structure in Canada and the US. Describing Tango as "a truly successful experiment," he said, "It's time to move on." Tango apparently will remain as the "cheapest, simplest fare" offered by the mainline but not as a separate entity.

AC aims to boost its share of Internet revenues to 37% by year end as part of its ongoing transformation. It already generates 60% of domestic bookings on the Internet, Milton said. Echoing comments made by a previous speaker, aviation analyst Edmund Greenslet, Milton also said he expects LCCs to move into the transatlantic market soon.--Perry Flint

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ATW

http://www.atwonline.com/indexfull.cfm?newsid=4020

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With all the crap that is going on at AC right now.... he has time to do this. What does this do for AC. Does it create revenue, does it reduce costs... no. It does however expose him to the movers and shakers in the industry for future employment. Get your butt home and deal with the issues.

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Dagger, I'll give him credit where credit is due but your undying devotion to RM at all costs is wearing a little thin. I'm a thinkin here that those contacts have already been made. I maintain that he should be in YUL dealing with the impendin collapse of the airline.

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RM is renowned for working 12 to 18 hours a day 7 days a week.

Telephone calls to the Ops centre in the middle of the night or from somewhere around the world, questioning 'what is going on'.

How much time did you put in on the job yesterday????

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What exactly should he be doing. A new business plan is the hands of the parties. The unions won't talk about anything. He's had his meeting with Victor Li. Government doesn't want to intervene. Events will dictate the next stage. You can't tell me that the guy can't make calls on his cell phone, or hold private talks with influential parties (like GECAS or Texas Pacific, for example). The notion that being in his office might be comforting to you, but it wouldn't be especially comforting to me.

And at this stage, it matters not to me whether he is CEO in six months so much as it matters that there is an airline to be CEO of in six months. One of the ways he can be helpful in the current circumstances is to project a business-as-usual face to the rest of the investment community. Hunkering down in the bunker like May 1945 awaiting the arrival of the Russian hordes looks a lot less re-assuring. Besides, the strategy is probably being run by Calin and his legal minions, and I am sure Calin is on this one 24/7.

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So you are agreeing then that he could spare some time to speak at a conference?

By the way, the airline was in decent shape well after August 1999. Even with the CAW imposed troubles of the summer of 2000, the airline did not begin to tank until November of 2000.

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