AC and TRZ Agree to Terminate Arrangement

[rudder]

Air Canada floated a billion dollar share offering today. The day after that closes, expect an announcement about refunds, then later the same day, government will approve the transaction.

The ducks are lining up in a row....

AC won’t be wasting its own cash on refunds.

That will be part and parcel with a zero interest loan from the Feds.

If YOW sinks the TRZ transaction, it will end up like a political boomerang should TRZ fail. The Feds would have to pump $500MM-1B in to TRZ and still have massive risk of never recouping a penny.

CR is backing the Libs in to a corner.

[goldeneagle]

AC won’t be wasting its own cash on refunds.

It's NOT their own cash, it's money they have hi-jacked from the customer base, turned a holiday ticket into an interest free loan in the form of a travel credit, many of which will likely expire before folks have an opportunity to use it.

[rudder]

AC won’t be wasting its own cash on refunds.

It's NOT their own cash, it's money they have hi-jacked from the customer base, turned a holiday ticket into an interest free loan in the form of a travel credit, many of which will likely expire before folks have an opportunity to use it.

True. But until the CTA changes its position on the matter, those are the rules for everybody. No point in singling AC out. The fact of the matter is that mandatory cash refunds would put several companies out of business, most notably TRZ and SWG. And ONEX might just refuse to pay instead placing WJ in CCAA making those obligations simply unsecured claims in that process.

This will be resolved when the Feds remove the ownership proposal and stop demanding input in to a company’s business plan (fleet/routes/schedule/etc). Tying restrictions on cash use from government proffered loans however is fair game, although the Feds did a poor job in making those restrictions stick in the previous round of general corporate handouts.

[DanWEC]

Slightly off topic, but with AC's Class A and B share offerings to raise cash, wouldn't that work to dilute the current share price by the same amount? Already down 10% today...

[fish4life]

People keep mentioning Onex / WJ but they are actually the only airline refunding tickets right now. Where are they getting the cash for it? No one knows or will know because they are private but they seem to be getting the cash to refund from somewhere.

[FL320]

People keep mentioning Onex / WJ but they are actually the only airline refunding tickets right now. Where are they getting the cash for it? No one knows or will know because they are private but they seem to be getting the cash to refund from somewhere.

“TORONTO -- Onex Corp. says its private equity investments increased in value this year, despite the economic volatility caused by the COVID-19 pandemic.
The company, which manages a fund that bought WestJet Airlines Ltd. in a $5-billion deal last December, didn't announce details about the Calgary-based airline.
Overall, the Toronto-based investment firm says it earned US$501 million, or US$5.29 per fully diluted share, in the three months ended Sept. 30.”

I know many people are struggling because of covid at the moment; but it’s been a great opportunity for most investors.

[Localizer]

CR is backing the Libs in to a corner.

Liberals are too dumb to notice. Or don’t care.

[FL320]

Marc Garneau says decision on Air Canada bid for Air Transat is ‘very near’
https://www.theglobeandmail.com/busine ... /#comments

[Localizer]

Marc Garneau says decision on Air Canada bid for Air Transat is ‘very near’

He also said industry support was on the way ..... 6-8 months ago.

[Latitude]

We all know it's a done deal. No surprise.

[boeingboy]

I doubt this is going to get approved by the Europeans....

[Splash]

I doubt this is going to get approved by the Europeans....

I think it will, with conditions attached. The question is, will AC accept those conditions?

[FL320]

I doubt this is going to get approved by the Europeans....

I think it will, with conditions attached. The question is, will AC accept those conditions?

Europe will approve the transaction as long as Garneau does. There is absolutely 0 chance that Europe prevent the transaction if it’s approved by Garneau. Conditions have already been requested to AC and they have fulfilled all the requests; they really want Transat. Again, it only depends on Garneau’s decision now; I think mid January all we be finalized. As rudder said, it’s time for both unions to work on our future (what they’ve already started I guess).

[FL-280]

(what they’ve already started I guess).

No not yet... waiting for the deal to be confirmed.

[FL320]

(what they’ve already started I guess).

No not yet... waiting for the deal to be confirmed.

Of course (official version).

[FL-280]

(what they’ve already started I guess).

No not yet... waiting for the deal to be confirmed.

Of course (official version).

Yeah for sure a few phone calls have been made or on the side meetings. Did we just agree on something?

[Localizer]

Yes little Timmy, miracles do happen!

Lol

[aerodude]

https://www.theglobeandmail.com/politi ... r-transat/

Quebec media baron Pierre-Karl Péladeau is urging the federal cabinet to deny Air Canada’s proposed takeover of Air Transat, offering to pay more for the struggling airline to guarantee competition and fairer prices for Canadian travellers.

The Globe and Mail has obtained three letters from Mr. Péladeau to Transport Minister Marc Garneau calling for a rejection of the merger, saying he will pay $6 a share or 20 per cent more than Air Canada to purchase Transat AT Inc., a Montreal-based airline and tour company.

I’ve been predicting this for months.
Some of the TRZ shareholders are even complaining of a lack of transparency during the vote as there was a bidder that was higher than AC.

Merge may still happen but politically it just doesn’t make sense.

[FL030]

He sounds like he thinks Garneau is going to approve it. The only hope this gets called off is if Europe says no.

[aerodude]

He sounds like he thinks Garneau is going to approve it. The only hope this gets called off is if Europe says no.

If that’s what you interpret, I’m putting the probability of a merge at around 50% now. I was 90% a few weeks ago. Its a political win for the liberals if TRZ is handed to Quebecor.