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Air Canada is continuing its fight for survival but the outlook currently appears bleak.

Despite the resignation of its Chief Executive and the appointment of a new one in April, business and finance analysts believe the carrier is getting closer to its second filing for creditor protection in 6 years. Air Canada’s chances of surviving without bankruptcy protection stand at no better than 50%.

The new management team have been given 6 months to try and find a solution to some of the problems which are currently crippling the company, such as Union matters, a pension black hole which stands at C$3 billion, other debt obligations, weak demand for travel and increasing competition from other rivals such as WestJet who offer low cost flights throughout the region.

Air Canada will need to make fleet reductions and seek to cuts its cost base substantially to stand any chance of survival in the future.

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