Air Canada losing $1bn for being Canadian: CEO

Air Canada CEO Calin Rovinescu said on Saturday that his country’s “outdated policies” around the aerospace industry were constraining economic growth.
“Outdated policies... not only hobble airlines but frankly the entire country and the economy,” he said at a Canadian Club luncheon in Toronto, and was quoted by the Wall Street Journal.
 
Between airport rent, airport infrastructure, navigation fees and charges, Air Canada estimates that it would save about C$1 billion ($992m) if it was a US airline with the same volume of business, he said.
 
“We cannot be boy scouts running around in short pants when it comes to global competitiveness, especially when we see what other countries are doing,” he was quoted by the WSJ.
 
As the world moves to global aviation hubs and gateways, he called on the government to amend the policy framework around the aerospace industry to make Canadian airlines more competitive with carriers around the world, which includes adjusting rates and charges for airports, rail infrastructure, air navigation, security, fuel excise taxes, income taxes and trade policies, the WSJ reported.
 
Rovinescu also commended the Canadian government for “having the backbone” to put the overall interests of Canadians before other considerations on the foreign takeover of Potash Corp. of Saskatchewan and the Canada-UAE bilateral air negotiations, WSJ said.
 
“In both cases, the government’s actions are in the interests of Canadian commerce, Canadian jobs and encouraging growth in the Canadian economy,” he said. “There would be no net benefit to Canada to caving in.”
 
However, a number of Canadian residents and passport holders in the UAE have directed most of their anger against Ottawa, which they believe mishandled the situation and allowed it to get to the point where Canadians now have to apply for a visa to enter the UAE.
 
They fear that Canadian expats in the UAE and their families back in Canada will be the ones who will have to bear the brunt of the fallout from the continuing differences between the UAE and Canada.

Follow Emirates 24|7 on Google News.