Air Canada (TSE:AC) CEO Michael Rousseau abruptly resigned on March 30 due to continuing fallout after one of the airline’s planes crashed at New York’s LaGuardia Airport, killing two pilots.
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Rousseau has faced growing criticism not only for the fatal crash but because his condolence message for the deceased pilots was delivered in English rather than French. Air Canada is headquartered in the French-speaking City of Montreal and the two pilots who were killed were French Canadians.
Air Canada said in a statement that Mr. Rousseau, who has been CEO since 2021, will retire by the end of this year’s third quarter. A search has been launched to find a candidate to succeed him in the CEO role, and the airline said its next leader will have the “ability to communicate in French.”
The Fatal Crash
On March 22, an Air Canada flight from Montreal to New York City collided with an airport fire truck on the tarmac at LaGuardia airport, killing both pilots and injuring dozens of passengers. The crash and subsequent response by Air Canada have been harshly criticized across the country.
Mr. Rousseau issued a public apology, saying that his language limitations had shifted focus away from grieving families. However, last week lawmakers in Quebec voted unanimously in favor of a motion calling for Mr. Rousseau’s resignation.
Is AC Stock a Buy?
Air Canada’s stock has a consensus Moderate Buy rating among 11 Wall Street analysts. That rating is based on five Buy and six Hold recommendations issued in the last three months. The average AC price target of C$23.57 implies 34% upside from current levels.
