Air Canada update: how can an airline be worth less than one of its aircraft?

Even after the federal government rushed to Air Canada’s aid with a back-to-work bill, passengers still faced flight cancellations as ground-crew employees staged wildcat strikes last week. That was five days after so many pilots called in sick that the airline had to trim its schedule. The disruptions showed how the struggle over new union contracts is out of hand. Standard & Poor’s Ratings Service said in a statement following the pre-weekend walkout that Air Canada’s debt ratings may be cut and raised the prospect that the labor disputes might erode bookings in the busy summer travel season. “The long-term