180 Day Commitment
 

Robert Milton is on ROBTV and Newsworld at this moment commiting AC to fixing its problems within the coming 180-days, and getting the new Air Canada fully integrated. More details when posted.

TORONTO, August 3 /CNW/ - Air Canada President and Chief Executive
Officer Robert Milton today unveiled a series of initiatives that will improve
customer satisfaction and deliver new benefits to the customers of both Air
Canada and Canadian Airlines International.
``Our customers expect top-notch service at all times,'' said Mr. Milton.
``However, we cannot totally insulate our customers from the inevitable
effects of integrating these two airlines, and the sheer complexity means we
can't do it overnight. But we can do a much better job of telling them how we
are addressing problems and when they will be fixed.''
The initiatives, covering subjects such as information systems
integration, facility upgrades and a staff hiring plan, are contained in the
first of a series of progress reports issued by Mr. Milton, which spell out
the actions required and the dates they will be implemented.
``We know what has to be done and we're sparing no effort to achieve
it,'' he said. ``It's also important we keep our customers informed every step
of the way so we're going to be up front about the improvements we're making
and when.''
Mr. Milton acknowledged that Canadian consumers expect efficient,
reliable and uninterrupted air service. In that context, Air Canada is totally
committed to enhancing service on the ground and in the air by resolving
outstanding issues, including the current mediation with Air Canada pilots.
Our 180-day Commitment/Progress Report informs Canadians about the
challenges facing Air Canada as it integrates Canadian Airlines International.
It outlines the legal, financial, labour relations, operational, technological
and commercial issues, and the steps the airline has already taken to address
them. It also outlines Air Canada's commitments, with target dates, for
resolving the issues of most concern to its customers, including airport
congestion, waiting times at call centres, frequent flyer programs, fares and
pricing, and the enhancements at Toronto's Pearson Airport.
``There are a number of critical milestones that we will reach before the
end of the year,'' said Mr. Milton. ``For example, by October, we will have
completed the key elements of the integration of over 300 highly complex
software applications governing everything from the reservation systems of the
two airlines to the Web sites, the call centres and the flight information
displays in airports.''
``We are committed to making that deadline, and when we do, customers
will see a dramatic difference in service.''
Milton also revealed that by the end of the year, Air Canada will have
over 2,000 more employees than both Air Canada and Canadian had at the end of
1999. Most staff are in customer service functions such as call centres,
airports and in-flight with the direct benefit of enhancing service levels.
``Pearson Airport is a key priority for us,'' he added. ``More than 65%
of both Air Canada's and Canadian's customers pass through Pearson, so
implementing solutions there is critical to rebuilding our relationship with
them.
``However, we don't have the luxury of closing down while we make these
improvements. We're still running 900 flights a day through the airport.''
In addition to the substantial progress already made at Pearson,
Mr. Milton committed to:

- Completing a new ticketing area in Terminal 2 by September;
- Adding two more priority check-in counters at Terminal 2 by August 15,
bringing the total to 10 counters;
- Completing the construction of three additional aircraft bridges by
mid-August to provide back- up gate capacity and ease congestion at
peak operating times;
- Hiring and training 150 new people for customer service at Pearson by
August 11, with a further 50 people transferring from other Air Canada
departments in September;
- Hiring and training 242 new people for cargo, baggage and aircraft
handling. These new employees will all be on the job by September.

Regular updates of Our 180-day Commitment/Progress Report will be issued
at 30-day intervals until February next year. The updates will track several
areas where the airline is making improvements and combining services, with
emphasis on developments of most concern to customers. Air Canada and Canadian
employees, who have worked diligently to maintain customer service throughout
the integration period to date, will also be given updates of the report.
The announcement of Our 180-day Commitment/Progress Report follows the
June 27 Court approval of the debt restructuring plan at CAIL. Air Canada is
now free to proceed with the integration and manage the two airlines as one,
giving the Company more flexibility to make decisions for the benefit of
customers.

-30-

As stated in the company email message I just received. Sheesh Shareholder, you sure are on top of things!


AC/CDN NewsFlash - “180 DAY COMMITMENT”—OUR PROMISE TO CUSTOMERS AND
EMPLOYEES

Today, at a news conference in Toronto, Robert will officially launch our “180 Day Commitment” campaign. It’s a massive television, radio, and print ad campaign led by Robert in which he informs the public about the challenges we face as we integrate the operations of Air Canada and Canadian Airlines.

As the campaign progresses, Robert will publicly make regular updates detailing changes taking place and improvements implemented. The campaign will help customers appreciate the magnitude of the changes underway. While we’re working as fast as we can to integrate, our customers already see us as one company. They don’t realise that customer contact employees don’t yet have ‘integrated’ tools or adequate resources. We know it’s been very difficult to deal with angry customers without the required tools to resolve problems quickly and efficiently. Hopefully, as the public becomes aware of the magnitude of the job at hand and the efforts we’re making to resolve their problems, the pressure you are going through will ease off.

EMPLOYEE ACTIVITIES
Video copies of today’s press conference and the first television ads will be sent to all work locations shortly. At home, active and
retired employees will receive a letter from Robert explaining the campaign, along with copies of two pamphlets distributed to
customers. Please listen to Robert’s message recorded today on the InfoLine. For more information, speak with your manager, who
received an electronic copy of the press kit.

ROBERT’S REPORT CARD
Active employees will receive regular progress reports from Robert. At 30-day intervals, “Robert’s Report Card,” which will track our achievements, specifically those meant to support and help employees, will be delivered to the workplace. Details will be
provided later. Subsequent ads and other promotional material will be distributed in the workplace over the coming months.

I listened to the news conference on dial-in. One reported made an astute comment - there were actually no new initiatives in the news conference or press package, but merely a summary of initiatives already launched. He pointedly asked if the 180-day Commitment was solely a 180-day Reprieve against criticism?

That aside, Milton did elude to some new benefits to be announced by the end of august, mainly improvement to seating configurations (?!) and in-flight entertainment...

This is a step in the right direction and a commitment to customers and to staff. I look forward to receiving regular progress reports and will hold my judgement in abeyance for 180 days. After that period, all bets are off... http://www.flyertalk.com/forum/smile.gif

The bottom line for me is that we are paying for a product and it is not being delivered. It's not really my problem that they are trying to merge two airlines. If they can not deliver their product that we expect, then we should pay a reduced rate for a substandard product. We would not pay full price for a new car with a scratch on the door, would we???

Isletraveller,

Judging by your geographic location, I would hazard a guess that you are a CP customer, or at least, used to be. At least you are not holding a ticket on a defunct airline. While I sympathize with a customer who does not receive good service, I would suggest that we try to remember that Air Canada is not responsible for the current situation. As you might remember, Canadian Airlines was having financial difficulties. Air Canada's initial proposal, was to purchase Canadian's international routes for $400 million, leaving Canadian as a domestic/North American airline. Onex, Canadian and American Airlines, with the blessing of the Canadian government, launched a hostile takeover bid for Air Canada. The bid floundered and Air Canada countered with a takeover of Canadian Airlines. Does it make any sense to blame Air Canada for being caught unprepared for one of the largest mergers of two international airlines? Had Air Canada engineered the whole scenario from the beginning, then I might feel inclined to lay blame at Air Canada's doorstep.

In addition, the dismal state of Toronto airport is the direct result of the cancelation of the Paxport terminal intiative by the current Liberal government. Had this initiative gone forward, a new, modern air terminal would already be up and running.

I do sympathize with the plight of both the airline customer and employee, but I might respectfully suggest that a little patience and understanding is warranted in this situation.

What the previous poster has forgottem, is the fact that CP had a superior product in the air. It is still that way to some extent, but has been downgraded so that AC does not look inferior.

No, it has been downgraded because CP was giving away the store in what proved to be a vain attempt to attract and retain business travellers.

CP set an artificial standard for domestic premium class travel, because is was simply unsustainable for the revenue which it generated. As for international service, AC's J class (from 1995) was a market leader to which CP was consistently playing catch-up.

The airlines with the consistently highest service standards are also the airlines which have lower labour costs bases (e.g. SQ, CX and KE) or charge higher fares for premium class services (e.g. BA, LH, SR)

AC cannot get away with charging what domestic J class should really cost at the CP service standard in view of the travelling public public's concern over fares, particularly where the revenue base is heavily diluted by the wide availability to upgrading to SE/EP and E/G members.

I found AC and CP's international J class service to be comparable from 95 - 99.

I actually believe AC could return to the level CP had established for domestic J-class since AC would now have the volume of paying customers to sustain the marginally higher cost it would entail. As I noted elsewhere last week, CP just never was able to get the number of paying customers up front above the threshold to make it pay. And as correctly noted above, it ended up upgrading too many of us who were not paying that full price.

While watching the Sunday morning U.S. political talk shows on CNN and elsewhere, there was a recurring story: how bad airline service has gotten and what problems weather delays had been causing this past month. (Not to mention UA having to cancel hundreds of flights over the past several days as pilots -- also negotiating a new contract -- refused to work overtime.) Could have been about Canada from the sound of things, but they were definitely referring to their own situation below the border.

By the way, welcome back home AC*SE, now that you've made the move from NYC to YVR.

[This message has been edited by Shareholder (edited 08-06-2000).]

Why not just give Mr.Milton a chance, and see
how much of his promise he can deliver in the
180 days. I'd be satisfied with 67.47962% of
the improvements happening in that time frame, because there are too many unpredictables that could take place to put a crimp in his plans, ie; pilots' strike, etc.
We may just have to grin and bear it for the
next few months, in the hope a better airline
will emerge out of the chaos. Patience---at least for 180 days.

bj-21

P.S. When they get back to re-painting the aircraft later in the year, why not have some small reminder that CP is also a part of Canada's now one airline. How about painting
the CP "goose" (that is a Canada Goose, isn't
it?) on the tail of the aircraft, below the Maple Leaf.
bj-21.

I saw Mllton's commercial on the TV for the first time tonight. Some nice shots of aircraft in the commercial...

By my count today is day 176.

So that means I have wait until the end of January before I can consider flying on AC, except of course for those routes that I'm forced to use because they're the only carrier.

I'm looking forward to February 2001 to have service at least close to what I would expect (and have received from Canadian).

Empress, do you remember what channel and what time you saw the commercial? I want to have a look too. Thanks. http://www.flyertalk.com/forum/smile.gif