MGT437H5 Chapter Notes - Chapter 10: Via Rail, Cncp Telecommunications, Canadian Pacific Limited
Document Summary
Session 10: the role of the board in special situations. Canadian national (cn) = crown corporation and was required to adopt policies and practices that furthered government"s interests. Canadian pacific (cp) means to bring immigrants to western prairies. Cn: start as conglomeration of bankrupt or nearly bankrupt local and regional railway under federal government control, ownership and was required to provide services to remote areas even if resulted in loss. As deregulation framework in the railway industry started to take effect, cn and cp started cutting off money losing branch lines: thousands of tracks closed and removed rail service, obsolete or money losing trains = scrapped. Privatization of cn and removal of air canada as an associated company combined with deregulation of transportation sector allowed freedom for price setting, long term contractual agreements and selling and closing of unprofitable branch lines.
