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AIR CANADA'S FLIGHT TO BANKRUPTCY The bankruptcy and dissolution of air Canada were due to restrictive government policy that made it impossible for the air line to respond in extremely competitive market in the aftermath of September 11th. The causes of Air Canada's bankruptcy were due to the restrictive government policy, increased competition, decrease in demand, changes in market and the impact of September 11th. In the following essay this will be explained by examining the causes and effects of the bankruptcy of air Canada and the steps Air Canada is taking for successful restructuring. The airline industry in which Air Canada operates is extremely competitive. Air travel has become a commodity where travelers will often choose the airline that can deliver the product most cheaply. The market in which Airline industry operates is Oligoplolistic environment. Observing the airline industry it can be stated that Air Canada was operating...

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