I thnk AC's problems may be cultural as well. I am one of those who actually thought their service was better in the old days when they were a Crown corporation. The management team of Jeanniot and Taylor added some real class and style, and offered lounges and a F-Class service second to none (in the days before international sleeper seats/bed). These were also the days when one proudly worked for the "people of Canada" in the public service and Crowns. There has been a great deal of dissing on public servants which demoralizes and devalues the notion of public service.
I also worked three summers at AC res in Toronto, and as their campus rep at Carleton in those days (late 60s). Maybe it was a certain naivite of the times, but by the time the late 80s and 90s rolled around, I sensed a different attitude and culture pervading AC, and for various reasons as a result of that, I began to take more of my business to CP Air and its successor, Cdn.
Just a fond reflection of days past, for what it's worth on a drizzly morning in YEG.