DETERIORATING financial results at Canadian Airlines have prompted a top-management shake out at the carrier. The day after reporting worsening losses for the second quarter (Flight International, 2-8 August) the airline's president, Kevin Jenkins, announced that seven of his top 22 executives would be departing.

They will be replaced in part by three senior managers from Canadian's US partner, American Airlines, to head customer services, marketing and sales, and engineering.

The appointments appear to stem from swift action by American to safeguard its 33% stake in the Canadian carrier, and also highlight areas of expertise where the US airline believes its partner to be weak.

The poor second-quarter performance, and a revised forecast for a seventh full year of losses, indicate that Canadian was caught off guard by the weakening domestic economy and Air Canada's aggressive pursuit of opportunities in the Canada-US markets, resulting in an increased market share.

While its arch-rival has pushed up passenger traffic steadily, Canadian has seen little growth to justify its extra capacity.

Source: Flight International