Improved performance
Download
1 / 22

Improved Performance - PowerPoint PPT Presentation


  • 78 Views
  • Uploaded on

Improved Performance. 2002 2001 (millions) Q2 Q2 Change Oper. Revenue $ 2,552 $2,564 $ (12) Oper. Expense 2,490 2,636 (146) Oper. Income (Loss) 62 (72) 134 Non-oper. Expense (46) (71) 25 Income (Loss)

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Improved Performance' - sela


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Improved performance
Improved Performance

2002 2001(millions) Q2 Q2 Change

Oper. Revenue $ 2,552 $2,564 $ (12)

Oper. Expense 2,490 2,636 (146)

Oper. Income (Loss) 62 (72) 134

Non-oper. Expense (46) (71) 25

Income (Loss)

Before FX & Tax $ 16 $ (143) $ 159

FX on L/T Monetary Items 19 161 (142)

Income (Loss) Before Tax $ 35 $ 18 $ 17


Best operating results of any major international carrier in north america
Best Operating Results* of any Major International Carrier in North America

% OPERATING MARGIN

2001

2002

* Pre-government assistance - US = 6 majors


Air canada revenue recovering faster
Air Canada Revenue Recovering Faster

Q2 2002/2001 % CHANGE


Air canada s 2nd quarter rasm outperforms industry
Air Canada’s 2nd Quarter RASM Outperforms Industry

YEAR/YEAR % CHANGE

2002

2001

* Mainline

** Source ATA


July august traffic stable
July/August Traffic* Stable

YEAR/YEAR % CHANGE

2002

* Mainline


Air canada unit cost performance outpaces us industry
Air Canada Unit Cost** Performance Outpaces US Industry

YEAR/YEAR % CHANGE

2002

2001

* Mainline

* * Adjusted for one-timers; US = 6 majors


All expense categories down except ownership user fees mtce and insurance
All Expense Categories Down Except Ownership, User Fees, Mtce. and Insurance

Q2 2002/2001

Mainline


Higher fleet productivity y t d aug asm s 2 block hrs 10
Higher Fleet Productivity Mtce. and InsuranceY-T-D Aug ASM’s*  2%, Block Hrs*  10%

YEAR/YEAR % CHANGE

2002

ASMs

Block Hours

* Mainline


Positioned for the future
Positioned For The Future Mtce. and Insurance

1. Multi-brand strategy

2. Increasing employee productivity

3. Falling distribution costs

4. Fleet simplification and commonality

5. Six Sigma

6. Low cap-ex and moderate debt repayment


Air canada s products
Air Canada’s Products Mtce. and Insurance


Air canada s products tango
Air Canada’s Products - Tango Mtce. and Insurance

  • Low fare/leisure

  • Simplified product

  • Supplemental flying in key markets

  • Medium, long haul

  • Domestic, transcontinental, sun

  • Point to point

  • No interlining

  • Low product cost

  • Mainline labour cost


Air canada s products zip
Air Canada’s Products - Zip Mtce. and Insurance

  • Low fare/business/ leisure

  • Simplified product

  • Domestic/transborder

  • Point-to-point, short haul

  • Full interlining

  • Low product cost

  • Low labour cost


Underlying tango profitability
Underlying Tango Mtce. and InsuranceProfitability

  • Revenue certainty

    • no overbooking, no denied boardings

  • No refunds

  • Single class seating

  • Low distribution costs

    • 80% to 90% internet bookings

    • Global Distribution Systems (GDS) by-pass

    • all e-ticket

  • “All frills extra” onboard service

  • No interlining, no baggage transfer

  • Fast turnaround, higher aircraft utilization

  • Low overhead


Employee productivity continues to improve
Employee Productivity Continues To Improve Mtce. and Insurance

ASM per EMPLOYEE**

*

Air Canada Pre-merger

Air Canada + CAIL as of June 30/00

Combined

ASM = Available Seat Mile

* YTD + estimate for balance of year

** Mainline


Agency commissions cut by more than half since 1998
Agency Commissions Mtce. and InsuranceCut By More Than Half Since 1998

COMMISSIONS AS % OF PASSENGER REVENUE

9.3%

7.6%

6.6%

5.9%

4.4%

*

* YTD + estimate for balance of year


Narrow body fleet moving to all airbus
Narrow Body Fleet Mtce. and InsuranceMoving to all Airbus

2000 2002

CRJ

15%

CRJ

16%

DC-9

10%

B-737

17%

Airbus

49%

Airbus

67%

To be replaced with Airbus aircraft when leases expire - some initially going to Zip.

B-737

26%

167 Aircraft 157 Aircraft


Implementing six sigma

2002 2003 Mtce. and Insurance

8 MBB 15 MBB

30 BB 120 BB

320 GB 1,380 GB

Implementing Six Sigma

Trained Personnel

Target Areas

  • Operations

    • Airports, Air Canada Technical Services, System Operations Control, Flight Ops, Inflight Services, Call Centres, Air Canada Jazz, Aeroplan, Air Canada Vacations

  • Staff

    • Marketing, Sales, Network Planning, Human Resources, Law, IT, Purchasing, Destina.ca

MBB = Master Black Belt, BB = Black Belt, GB= Green Belt


Low cap ex moderate debt repayment
Low Cap-Ex & Moderate Mtce. and InsuranceDebt Repayment

  • Cap-Ex

    • Annual steady state cap-ex = $200 million

    • 2003 & 2004 aircraft deliveries fully financed

      • ten A319/320/321s

      • two A340-500s

      • three A340-600s

  • Debt Repayment

    • $375 million second half of 2002 (mostly behind us)

    • $220 million in 2003


Good liquidity
Good Liquidity Mtce. and Insurance

  • $0.9 billion in cash at June 30, 2002.

  • Generating positive cash flow from operations.

  • Approximately $2.8 billion of unencumbered assets

    • aircraft

    • engines and spares

    • inventory

    • real estate

    • lease deposit receivables

    • accounts receivable


Significant value in air canada s business units
Significant Value In Mtce. and InsuranceAir Canada’s Business Units