Air Canada sees ‘much healthier’ airlines amid ‘consolidation, restructuring’

    Air Canada president and CEO Calin Rovinescu, speaking at the IATA AGM and World Air Transport Summit, stated (04-Jun-2018) there has been “so much consolidation, restructuring” in the industry across a variety of different geographies. As a result, airlines in those geographies are “much healthier” as a result, whether restructuring has been through a straight out acquisition, through pension restructuring or a complete business restructuring. While the industry is significantly stronger,” Mr Rovinescu noted that “a lot of guys who have over extended themselves”. He cited “massive fleet purchases” without confirming financing as an issue for some carriers. Despite a more stable environment, Mr Rovinescu noted that for some weaker operators, a “day of reckoning has come” although “generally speaking, you are not seeing a 2001 technology bubble burst or a post 9/11 environment”.