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or Name
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CA



Air Canada
Symbol AC
Shares Issued 271,068,997
Close 2017-06-21 C$ 17.11
Market Cap C$ 4,637,990,539
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Globe says Air Canada boss defends overbooking

2017-06-21 07:48 ET - In the News

The Globe and Mail reports in its Wednesday edition that overbooking helps keep fares low and affects only a small percentage of seats available on Air Canada flights, said president Calin Rovinescu. The Globe's Greg Keenan writes that the complex network operated by Air Canada means "by definition" that some people who buy tickets are no-shows, Mr. Rovinescu said. "Data shows there's a certain number of no-shows that come up, so this practice has permitted pricing over the airline industry generally that would stay lower," Mr. Rovinescu said. The Canadian government is in the midst of preparing a passenger bill of rights that would address compensation for overbooking and other disruptions to travel. An airline lobby group said in the midst of the furor over a United Airlines incident in April that airlines need to be allowed to operate as efficiently as possible in order to keep fares competitive. "Banning the practice of overbooking will reduce already-thin margins and could reduce connectivity in turn," the organization said. Mr. Rovinescu said Air Canada looks forward to Ottawa's passenger-rights legislation "so that everyone is going to be treated on a level playing field."

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