Collection search - Cochrane, Michael - Speech

Record information – Brief

1

Cochrane, Michael - Speech

Item number (ISN):

384906

Hierarchical level:

Item (Accession level)

Date:

1976-06-18

Item number (ISN):

384906

Type of material:

Sound recordings

Found in:

Archives / Film, Video and Sound

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Record information – Details

Fonds/collection:

AIR CANADA

Accession:

1978-0107

Media:

Sound

Part:

1 of 1

Production date:

1976-06-18

Description:

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Speech by Michael Cochrane swen to the Ottawa Kiwanis about:~Air Canada is role, outlook, and plans.~The airline as vital to economic efficiency - holding us together in the position railways were many years ago.~The airlines being overburdened with unique charges and taxes for non-airline activities particularly at provincial levels, or could force air fares up.~Problems faces by the industry which needs a lot of capital, the bulk of which goes into aeroplanes, which are costlier today - $40 million for a 747.~In 1955 the whole industry paid $10 million in interest and now its $420 million.~AC interest expense is $63 million with three percent of total money is invested in the airline and the rest, is debt 97%.~The develomend of aircraft leasing, and in last two years raised $200 million; over sixteen years or life of aircraft, the savings are very great.~The airline having had losses in three of the last thirteen years.~If equity had been about 50 percent we would not have had such high interest would not have lost money in any of those thirteen years or in any year of the history of AC.~Routes are generally shorter in average than CPA or U.S. airlines.~In efficiency AC ranks sixth in the world. In Load factors AC leads the world. If prices had been the same as U.S. airlines for fuel and taxes instead of losing $12 million last year we would have made $55 million. AC's fares are just about equal to the U.S. fares.~The airline as being profit oriented. AC On-time performance is better than any other airline in the world, this last year. It has not enjoyed special privileges because of being a Crown corporation - liable for income tax,and paying the going rate of interest on money borrowed. AC is required to pay the money back. The ailine will no longer borrow from government - we finance oourselves by leasing aircraft.~Fuel costs are continuing to climb as do fare increases with three increases in last year - user charges, security charges, fuel. $30 million dollars over one year.~Air Canada trying to maintain load factors; making sure staff levels stay below last year. With 10% increase in traffic the company will make money in 1976. If the controllers go on strike it will cost $3 million a day. Looking forward to changes in the Air Canada Act, which will enhance AC's future. It will change the debt/equity ratio and then the airline will be able to show that we are making a profit. The company's major asset is human resources and the high morale level. We have a modern fleet, well equipped to handle any traffic increases that materialize.~In summary Canada can be extremely proud of its airline. Air Canada is doing its job. <24mn>

Language:

English
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Conditions of access:

Restricted by Creator/Donor

GENCAT identity number:

GAD 0FD625

Restrictions on consultation:

Consultation with permission of Air Canada.

Reproduction access:

with written permission of copyright owner : with permission of Air Canada

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Date modified:: 2024-07-04