CAN CALIN ROVINESCU FIX AIR CANADA?
Rovinescu's task won't be easy. While he played a key role during Air Canada's reorganization under bankruptcy protection in 2003 and 2004, he is taking the controls at a time when demand for air travel is falling and Air Canada's cash obligations are on the rise because of debt repayments, bad bets on fuel hedges and significantly heightened pension obligations.
Air Canada posted a loss of more than $1 billion last year.
"Calin coming in is the board saying we need dramatic change because we're losing way too much money," said Karl Moore, a business professor at Ï㽶ÊÓƵ.
But the challenge this time around is that there are few obvious places to make deep cuts. As well, most of the airline's side businesses, including Aeroplan and regional carrier Jazz, have already been spun off.
, April 4, 2009
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