RE:So much for a bailout Wow. Getting back to only 25 percent of capacity by end of year ONLY if Trudeau eases travel restrictions. Calin is a real pro and will likely manage as well as can be expected. Recall he was brought in by Milton post 9/11 to restructure the airline (he left in 2004). But trying to manage a high utilization fixed asset business with leverage and committed capital expenditures under these black swan conditions would test anybody. I put together a VALUATION analysis that was criticized/mocked by the Tin Hat Brigade for being too conservative. These assumptions were revenue getting back to a run rate of 80 percent of 2019 levels by mid 2021 . This would now appear mind numbingly optimistic. Be careful out there.
From the CBC:
The airline said it is currently flying at about five per cent of the capacity it flew last year and hopes to ramp up to 25 per cent later in the year if government-imposed travel restrictions are eased. Landry said in the memo that the airline was burning $22 million a day.
"Sadly, today the hard truth is that by every indicator we have available to us, we believe that we will be materially smaller for at least three years," Craig Landry, Air Canada's executive vice-president of operations, said in the memo.