Open Skies
By the late 1970s and early 1980s, many of the routes CP Air had pioneered such as Vancouver–Tokyo were now very lucrative and the previous distribution of routes was considered unfair. In 1979, the federal government eliminated the fixed market share of transcontinental flights for Air Canada (the successor to TCA). While this was a condition that was pressed by CP Air for a long time, it now scrambled to upgrade its fleet to expand on newly available routes such as new nonstop service from Vancouver to Hong Kong and Shanghai to go along with adding more flights to its then current routes like Amsterdam, Rome, Tokyo and Sydney to prepare for increased competition from Air Canada in its traditional territory. This required massive fleet renewal and an associated debt of $1 billion.
This debt load, the increased competition, and the economic downturn in Asia would all work against CP Air's future.
Read more about this topic: Canadian Pacific Air Lines
Famous quotes containing the words open and/or skies:
“I have passed down the river before sunrise on a summer morning, between fields of lilies still shut in sleep; and when, at length, the flakes of sunlight from over the bank fell on the surface of the water, whole fields of white blossoms seemed to flash open before me, as I floated along, like the unfolding of a banner, so sensible is this flower to the influence of the sun’s rays.”
—Henry David Thoreau (1817–1862)
“The shallowest still water is unfathomable. Wherever the trees and skies are reflected, there is more than Atlantic depth, and no danger of fancy running aground.”
—Henry David Thoreau (1817–1862)