AC and TRZ Agree to Terminate Arrangement

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FL320
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by FL320 »

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LittleNelly
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by LittleNelly »

Quebec advocating for Quebec first.. what a shocker

Everyone knows it’s bad for competition( All Canadians), Bad for Air Canada whose priority now is to preserve liquidity and survive, and bad for Air Canada Employees who would sacrifice their jobs(not just pilots but the whole employee group)

The only winners from this deal, as is, would be the Transat employees and shareholders. Times have changed, in the current environment Air Canada has NOTHING to benefit from the deal anymore. Market share of a dead transatlantic leisure market, labour and aircraft that are not needed anymore.

It will not go over well if Air Canada receives federal assistance, to then go and send $700 million of tax payers money to Air Transat shareholders which includes the friend and former partner of the premier of Quebec. That will not happen. If Quebec wants to bail them out, let Quebec bail them out.
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altiplano
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by altiplano »

That report is bought and paid for!
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ayseven
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by ayseven »

We look after our own here in Quebec. It should be an attitude every other province takes, but that is their problem. I have always had the belief that BC for example, goes out of its way to step on their own, in favour of easy money from people from elsewhere (I am talking about other provinces, not just other nationalities). It is just a philosophy, and it can be changed if we want it.

I am on the sidelines (as usual), but I don't see how AC employees can come out winners in this. AC cares about share prices and profits. Employees are just an evil necessity.
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Fanblade
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Fanblade »

ayseven wrote: Mon Mar 30, 2020 7:50 am We look after our own here in Quebec. It should be an attitude every other province takes, but that is their problem. I have always had the belief that BC for example, goes out of its way to step on their own, in favour of easy money from people from elsewhere (I am talking about other provinces, not just other nationalities). It is just a philosophy, and it can be changed if we want it.

I am on the sidelines (as usual), but I don't see how AC employees can come out winners in this. AC cares about share prices and profits. Employees are just an evil necessity.
Ha!

AC employees will NOT Come out on top under any scenario. I suspect 20-30% gone moving forward. The question is simply how much pain will be foist upon them. Will extra pain be brought down on them through political interference.

20 years ago I watched a Liberal Government twist AC into taking on another failing company. It ended badly for everyone. Shareholders, Employees, contractors, suppliers. Everyone.

I have an idea though. How about Quebec green light energy east?

Anyone?

Nothing?

Thought so
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Last edited by Fanblade on Mon Mar 30, 2020 8:00 am, edited 1 time in total.
airboy1
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by airboy1 »

If sunwing doesn't restart operations.... am i correct to say all i will have as a choice for vacation flying is air canada and westjet after this merge?
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Fanblade
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Fanblade »

airboy1 wrote: Mon Mar 30, 2020 7:59 am If sunwing doesn't restart operations.... am i correct to say all i will have as a choice for vacation flying is air canada and westjet after this merge?
Yup. But regardless of consolidation that may happen anyway through failures.

The problem with shutting down or ceasing operations completely is that now you have no forward bookings. When you restart, the cash burn will be MASSIVE. Most of those travelling will be travelling on previous credit. Neither Sunwing or Transat have the capital on their own. In fact no one knows how leveraged WJ might be at the moment. That might be a wildcard no one has considered. They were just bought by a hedge fund in a highly leveraged transaction.

So a huge cash infusion is now required for Transat and Sunwing to restart. Right at a time when AC will need every inch of its cash reserves to fund its own restart which also will be massive. Westjet? No one knows.

So unless someone ponies up a HUGE bailout, failures will happen.

This is the real issue now. Who funds all the restarts?

Government is overwhelmed, Airlines are overwhelmed. I suspect nothing will transpire of any substance until post pandemic. Throw money at things in the short term and figure it out later.
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Last edited by Fanblade on Mon Mar 30, 2020 8:39 am, edited 7 times in total.
altiplano
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by altiplano »

Or drive to Burlington/Buffalo/Bellingham.

Or Connect to DFW/ORD/ATL.
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andrewhartjr
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by andrewhartjr »

Do you guys realize how strong financially Sunwing actually is? I don't think you really know what the Sunwing group is. The Hunters (owners) are always ahead of the curve and they immediately protected their operations with the layoffs. TUI owns 49% of Sunwing. TUI has in its accounts 1.7 billion Euros in Cash and the German government just approved a Bridging loan of 1.8 billion euros.
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Fanblade
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Fanblade »

andrewhartjr wrote: Mon Mar 30, 2020 8:16 am Do you guys realize how strong financially Sunwing actually is? I don't think you really know what the Sunwing group is. The Hunters (owners) are always ahead of the curve and they immediately protected their operations with the layoffs. TUI owns 49% of Sunwing. TUI has in its accounts 1.7 billion Euros in Cash and the German government just approved a Bridging loan of 1.8 billion euros.
I’m not suggesting Sunwing won’t restart. I’m stating that for TUI and all its operators to restart will be MASSIVE. Everyone’s restart will be MASSIVE. Those that have, or find the financing, will come back.

Those that don’t have it won’t.
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Jumbo744
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Jumbo744 »

I agree. The restarts will also be quite slow.
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Fanblade
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Fanblade »

Jumbo744 wrote: Mon Mar 30, 2020 8:34 am I agree. The restarts will also be quite slow.
I agree. Capital constraints may force some operators to basically go back to scratch rather than risk failure. However those with deeper pockets could see themselves ahead 2 years from now.

I noticed porter has secured money. That is a good sign.
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Gilles Hudicourt
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Gilles Hudicourt »

A few posts were deleted by the MODS including one of mine. I wonder why........
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98 Corolla
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by 98 Corolla »

Jean-Luc Monette wrote: Sun Mar 29, 2020 2:57 pm You do realize many of us have been there for well over 20 years and are also close to retirement but not quite ready to pull the plug?

Our #1 is a founding member (1987) who still has 5 years of flying ahead of him, and he’s getting a layoff notice like the rest of us
If they have been there 20 years and are close to retiring wouldn't they have a reasonably large pension earned by now? Why not just retire and ride into the sunset?
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Jean-Luc Monette
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Jean-Luc Monette »

98 Corolla wrote: Mon Mar 30, 2020 1:26 pm
Jean-Luc Monette wrote: Sun Mar 29, 2020 2:57 pm You do realize many of us have been there for well over 20 years and are also close to retirement but not quite ready to pull the plug?

Our #1 is a founding member (1987) who still has 5 years of flying ahead of him, and he’s getting a layoff notice like the rest of us
If they have been there 20 years and are close to retiring wouldn't they have a reasonably large pension earned by now? Why not just retire and ride into the sunset?
I’ve been there 24 years, of which 22 as a captain, always on widebody A/C, I’m 56 and have been through 4 layoffs during my career including this coming one, but the thing is we didn’t have a “pension plan” at AT before 2000... So no, not everyone is ready to call it quits!
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Fanblade
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

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aerosexual
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by aerosexual »

98 Corolla wrote: Mon Mar 30, 2020 1:26 pm If they have been there 20 years and are close to retiring wouldn't they have a reasonably large pension earned by now? Why not just retire and ride into the sunset?
Most airlines don't have an actual pension plan. Most pilots close to retirement probably would have been in great shape to retire, but let's face it investments took a big hit. This isn't favourable to anybody unless they have a million bucks under their mattress.
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FL-280
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by FL-280 »

Jean-Luc Monette wrote: Mon Mar 30, 2020 1:50 pm
98 Corolla wrote: Mon Mar 30, 2020 1:26 pm
Jean-Luc Monette wrote: Sun Mar 29, 2020 2:57 pm You do realize many of us have been there for well over 20 years and are also close to retirement but not quite ready to pull the plug?

Our #1 is a founding member (1987) who still has 5 years of flying ahead of him, and he’s getting a layoff notice like the rest of us
If they have been there 20 years and are close to retiring wouldn't they have a reasonably large pension earned by now? Why not just retire and ride into the sunset?
I’ve been there 24 years, of which 22 as a captain, always on widebody A/C, I’m 56 and have been through 4 layoffs during my career including this coming one, but the thing is we didn’t have a “pension plan” at AT before 2000... So no, not everyone is ready to call it quits!
So please explain to me why Air Canada pilots must pay for your poor career choices?
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flyinhigh
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by flyinhigh »

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dialdriver
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by dialdriver »

FL-280 wrote: Mon Mar 30, 2020 5:49 pm
Jean-Luc Monette wrote: Mon Mar 30, 2020 1:50 pm
98 Corolla wrote: Mon Mar 30, 2020 1:26 pm

If they have been there 20 years and are close to retiring wouldn't they have a reasonably large pension earned by now? Why not just retire and ride into the sunset?
I’ve been there 24 years, of which 22 as a captain, always on widebody A/C, I’m 56 and have been through 4 layoffs during my career including this coming one, but the thing is we didn’t have a “pension plan” at AT before 2000... So no, not everyone is ready to call it quits!
So please explain to me why Air Canada pilots must pay for your poor career choices?
Actually, I am going to send Air Canada HR a thanks for the PFO.
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