Air Canada takes out full-page ads in major papers to reassure customers

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Air Canada takes out full-page ads in major papers to reassure customers
Canadian Press  Wednesday, April 02, 2003

TORONTO (CP) - Air Canada, which filed for bankruptcy protection Tuesday,
took out full-page ads in the country's national papers Wednesday trying to
reassure customers that it's business as usual at Canada's dominant
carrier.  Although the Montreal airline began a restructuring under court
protection from its creditors Tuesday, it continues to fly and operate
regularly. "It is important that you understand that we are not going out
of business," the ad said. "We will continue to work hard to provide you
with the safe, reliable quality service that you have come to expect from
Air Canada. You can continue to book your travel with confidence."  The
carrier said all its Air Canada, Jazz, Tango, Zip and Air Canada Vacations
flights are operating as usual and all regular policies and fees apply.

As well, customers' participation in the frequent flyer Aeroplan program is
unaffected and travellers will continue to earn and redeem Aeroplan miles
as usual.  "We are determined to emerge from this process a stronger,
leaner, more financially competitive company that will take you where you
want, when you want, at prices that make sense for you," the ad says.  Air
Canada (TSX:AC.A) sought bankruptcy protection to avoid collapse after it
failed to get major cost cuts from all its unions. The protection from its
creditors will allow the carrier to continue operating while it negotiates
a survival plan with employees, creditors and other stakeholders over the
next several months.  The restructuring is expected to take about six
months and will likely leave Air Canada with fewer planes, fewer employees
and a slimmed down route structure - with the possibility that the carrier
will withdraw from serving some smaller Canadian communities.

As a result, customers may find less flexibility in booking their flights
and could find it more difficult to fly to some cities.  On Tuesday, Air
Canada CEO Robert Milton pointed to recent airline restructurings in the
United States to insist that nothing will change for travellers, while
suppliers and employees will continue to be paid.  "Air Canada's customers
around the world can continue booking with confidence that their travel
plans will not be disrupted."  In trading on the Toronto Stock Exchange on
Wednesday, Air Canada's common shares plunged $1.28 to 82 cents, a drop of
61 per cent, in trading of 6.9 million shares.


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