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The case traces the story of Canadian Airlines from its early days of profitable regional operations, growth through acquisitions to the status of a national and international carrier, and ultimately to the crisis of the early and mid 90s. Fundamental questions of strategy need to be resolved. How is revenue generated? What are the sources of cost? How do airlines make profits? In pursuing these questions, students need to sort out the realities of the airline industry and the specific opportunities and challenges facing Canadian. There is a French version available ''9A95MF14''.