Why Did Canadian Airlines Go Out Of Business?

Canadian Airlines was bought by Air Canada in 2001 and it was gradually merged into the national airline. Based in Vancouver, Canadian Airlines was in operation from 1987 to 2001 and was the country's second largest carrier. The airline was known for its relatively extensive network of Asian destinations, as well as domestic, European and transborder routes. In total, Canadian Airlines serviced 160 destinations and flew approximately 11 million passengers each year during the mid-1990s.

Canadian Airlines experienced financial problems in 2000. Nevertheless, before Air Canada was able to acquire it, American Airlines also expressed interest in the carrier. AA and Canadian had worked together previously on a number of routes where the two airlines had code-sharing agreements. In the end, Air Canada acquired the company and Canadian's entire fleet, which included 163 aircraft. Most of these were Boeing 737 and 767 airplanes, as well as a number of Airbus 320 aircraft.

Canadian's livery and its frequent flyer program were both phased out as part of the acquisition process.

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