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View Full Version : Air Canada asks for bankruptcy protection


katypop
04-01-2003, 02:38 PM
no april fool's joke:( air canada has asked for bankruptcy protection. not a great surprise, i know, but i was hoping this would not happen. i am booked on air canada for apr27/03. i usually stress about how many clothes to take or how much money to take or whether those AP codes are ever going to get released...but this year it is very different with the worry of the effect of the war and how Canadians might be perceived and now worrying about my flight:( i know the government will probably step in and help the airline but you never know.

kathe:D

oh...and i almost forgaot about SARS:(

blizzard
04-01-2003, 07:23 PM
Don't know if it will make you feel any better, but I work for Air Canada and I'm still planning on taking my Disney vacation on May 4.

From what I've heard, AC has secured financing to make sure they have enough cash to keep operating while they are restructuring.

You shouldn't be afraid - especially in the near term - about tickets you have being honoured.

(the access to financing while restructuring is what is different about Air Canada's situation as compared to when Canada 3000 declared bankruptcy. They were unable to obtain any financing, so stopped paying their bills. Then when their aircraft were overseas, the creditors started seizing them. They decided it would be easier to shut down at that point)

As always, if you pay for your tickets with a credit card, you are protected if you do not receive the goods (air transportation) that you purchased. Keep in mind too, that United Airlines has been in bankruptcy protection for a few months now, and have not left anyone in the lurch.

Hope that helps you feel better about your upcoming trip.

bunnyfoo
04-01-2003, 07:53 PM
I don't think they they will go under ... I know for now, they've secured $700 million in financing from GE Canada (?) which they said will last them for about a month. It will be interesting to see how they will restructure.

mom_rules
04-01-2003, 08:52 PM
We also heard today that it's "business as usual" and they are okay for 3-6 months until re-structuring has been completed.

katypop
04-01-2003, 11:30 PM
thanks everyone for the positive feedback:D :D i think everything will be okay too, just a little worrisome though.

kathe:D

epcotfan
04-02-2003, 02:12 AM
Kathe I'm flying shortly after you do so I was worried as well. My mom got stuck in Orlando when Canada 3000 went under. At least with AC they've got some immediate protection. Like others have said it will take some time to restructure. We made sure to book through a travel agent this time round. When she got stuck with Canada 3000 she had booked directly from the airline so she had no protection other than disputing her credit card charge (that's a whole other story :rolleyes: ) Many other airlines in the US have filed for bankruptcy protection in the last few months and are still operating. I know AC is consulting the firm that helped with one of the US airlines restructure.
I figure if I get stuck in Orlando at least I'm at Disney with an Annual Pass. Rather be stuck there than anywhere else :)

PoohBWV
04-02-2003, 08:04 AM
I wouldn't worry too much. If you have booked through a TA, they would help you get home if something did happen (although I believe you will be fine), your credit card should offer some protection and if you live in Ontario TICO (Travel Industry Council of Ontario) refunded hundreds of people for monies lost when Canada 3000 went under, so you would have some protection there as well.

katypop
04-02-2003, 10:09 AM
this is the first trip i have booked using my airmiles. ???? would they count as a travel agent or would i lose the airmiles??? i did purchase travel insurance so guess i should get it out and start reading the fine print:eek: i wouldn't mind getting stuck at wdw either for a few days LOL , first time i've bought an AP, but i want to make sure i get there first:D :D

kathe

Scratch42
04-02-2003, 10:09 AM
I booked my January Flights with A/C!

Murphy Stop Following Me!

Scratch
:rolleyes:

PoohBWV
04-02-2003, 07:39 PM
Katypop:
AC has announced that they will honour all Aeroplan requests, so I wouldn't worry. They will continue to fly as long as they are in protection and in all honesty even though the goverment has stated that they won't bail them out, they have made somewhat of a committment to at least offer loan guarantees.

katypop
04-03-2003, 12:58 PM
thanks PoohBWV:D i'm starting to relax a little:D :D less than 4 weeks until i go:bounce: :Pinkbounc

kathe