Air Canada named best in North America
CEO pledging more ‘improvement’
Air Canada was named the best airline in North America at the Paris Air Show on Tuesday, but chief executive Calin Rovinescu says there is still room for improvement in its customer service.
“It’s gratifying,” Rovinescu said in an interview with the Financial
Post ahead of the Skytrax award announcement at the Air Show.
“But that’s not to say we’re spiking the ball in victory. We can and will continue to make improvements.”
Customer service has been brought to the forefront for passengers in recent months, particularly after video footage went viral showing a passenger being dragged off a United Airlines flight after refusing to leave his seat to accommodate crew members.
Last month, the government introduced new legislation that will spell out airline passenger’s rights, and ban the practice of overbooking. Public consultations surrounding the details of the bill are expected to launch soon.
The legislation will certainly be key to customer service improvements going forward, and Rovinescu said the company looks forward to the bill but hopes that the government takes a “sensible approach” and applies rules similar to those seen in other countries, where the bill of rights applies to all carriers operating in the country.
“We look forward to the rights legislation on the basis that it will create somewhat of a level playing field for all carriers, because in some cases some international carriers were not subject to the same rules we imposed on ourselves,” Rovinescu said.
“That to me would be the No. 1 thing.”
Since April 2009 — when Air Canada shares hit an abysmally low 78 cents and Rovinescu took over as chief executive — the company has managed a successful turnaround, its stock increasing more by more than 2,100 per cent from its low point as of Monday.
The company’s $10-billion capex saw the purchase of 37 Boeing 787 Dreamliners, 61 737 Max jets and 45 Bombardier CSeries aircraft, allowing it to expand to new destinations and increase capacity. However, the airline expects capacity growth to slow from the double-digit increases seen in recent quarters.
Now, Rovinescu said the focus in Air Canada’s next chapter of growth will involve consolidating its international routes, opening new North American markets with the CSeries jets, while still driving improvements to customer service.
“A consolidation in our activity in our many markets is going to continue to increase the drive of Air Canada’s profitability,” he said. “We will have some opportunity for growth, but it will not be of the same order of magnitude we’ve seen recently.”
While Rovinescu would not weigh into the ongoing trade dispute between Boeing and Bombardier, he said the company is looking forward to mapping out the new routes for the CSeries jets, which will be delivered starting in 2019. The aircraft will serve routes within North America, Rovinescu said, and could be deployed on longer hauls between the east and west coasts.
“There is no question that this industry continues to be extremely competitive ... and that competition is increasing,” Rovinescu said.
“The natural advantage that airlines get is having great product, new equipment and great service. That’s how we have to position ourselves.”
The 2017 Skytrax World Airline Award is based on a poll of 19.87 million travellers from more than 105 countries, surveyed between August of last year and May 2017. Air Canada has won the award six times in the last eight years.