AVCANADA

As for Jazz, it may ultimately take an AC CCAA filing to have the ability to outsource the current Jazz/Express flying to other bidders prior to 2020.

CIBC WM

Jazz Air Income Fund
Jazz (JAZ.UN-SO) provides regional services for Air Canada. In a CCAA filing, the
key document governing the two companies’ relationship, the Capacity Purchase
Agreement (CPA), is subject to opening and negotiation. However, we believe a
bankruptcy court would have to find the contract well offside in terms of market
rates for operations and we believe Jazz provides service to Air Canada at rates
comparable to any of the U.S. regionals and typically exceeds them. Part of the
2010 rate reset process for the CPA already includes a benchmarking process on
cost to U.S. regional carriers.
We believe Jazz would also be ready to provide direct financing or would agree to
changes in the CPA that are mutually beneficial in order to avoid a CCAA filing.
One option for Air Canada in a CCAA filing could be to modify the existing scope
clause with its unions. The current scope clause limits the size, number and type
of aircraft and capacity Air Canada is allowed to contract to Jazz. Jazz has lower
labor costs and more flexible work rules than Air Canada. If the CPA was
terminated, we do not believe Air Canada would find it more cost effective to
internalize the operation.
The scale of services that Jazz provides Air Canada should also not be
underestimated. Jazz provides airport operations for all Air Canada destinations
in Canada other than the largest eight airports and provides service to 86 of 115
North American destinations. We believe the scope of the operation would make
it very difficult, if not impossible, to take over completely. As well, there is no
other entity in Canada with sufficient resources to operate 133 aircraft covered
under the CPA. Installing a transplant airline from U.S. regional airlines is a
possibility but it would certainly take time leading to severe disruption to
service, which we expect the government would not tolerate for long. We expect
Air Canada would not be able to reduce expenses materially in this scenario.

In the event of a strike, assuming Air Canada can maintain its customers
systems, Jazz would continue to operate. In previous labor actions, regional
carriers have typically seen their loads increase as they carry passengers
normally carried by the mainline.

Thank you Rudder,If you are an ac employee ACPA should elect you as thier new leader as you are the only one with a solid grip on the true reality of the situation.

So your playing the doomsday card too.

Anybody who can read the news or access the internet has figured it out. Why is it so difficult for those that will be the most affected to recognise their circumstances?

Your not listening. Or are you just disappointed? The last offer from the company, if implemented, would see mainline retain 91 seats and up. It saw an 80% increase in flying 90 seats and below. Will it have an impact on the E and 319 fleet? Yes.

Not doomsday though. Not massive lay offs.

Open your eyes. The corporation is still hiring and training up.

Why does everyone assume Jazz would be the benefactor in an Embraer offload? If we're going to look to the US model of fleet distribution, then the lowest bidder will get the hulls. Smart money would be placed on Sky Regional for this one because they absolutely have the ability to undercut any bid Jazz could put forward -- unless,of course, there is something in the scope language that I'm missing, because NO ONE WILL POST THE DAMN THING HERE!!!

Thats it dropping 15 75 seat hulls and giving all a raise will fix everything...Maybe if it was 10 years ago.If you think that will fix it you better start working on plan B.

No one questions the need for change and the employees have proven themselves willing to accept change for the long term benefit of the corporation and their jobs. A decade of repeated concessions prove that.

It won't do any good though if there isn't a seismic change in management attitudes, style and competency or we will find them coming after us for more and more to cover for their own failures. Give us a management team worthy of believing in and you would be shocked what employees are willing to do.

Not with this last bunch in a long line of world class clowns though.

We are not productive enough.

No reserve time balancing
to much time in training
one minute out bound rule
Bank time. Overtime taken as time off rather than cash cleared.
Drop flying after taking a draft.
Drop flying with too much block growth.

Those are just off the top of my head.

"2 sky regional RJ900"

So Sky Regional would get some RJ 900 when Jazz already operates the exact same aircraft(RJ 705 is the exact same airframe with 75 seats instead of 90)
How would that be cost effective? Answer: Because they will fly them for peanuts, just like the are on the DH4.Brilliant! Well done Sky!

I'm not saying that was the right path for Jazz either

Excuse my French...but ARE YOU #%$@ing SERIOUS!?!?!

HavaJava,

I get your point about the reserve rules. I'm new. I live them. They aren't even legal IMO.

But i was specifically referring to productivity. Starting with 10 reserves at the beginning of the month. The top 5 pass everything. The bottom 5 fly out. Month end comes and havoc breaks out. Capt as RP. Draft.

How does WestJet's contract compare to all that?

ACPA let Sky slide in being blinded by their outrage that Jazz is flying for Thomas Cook.

. As long as everyone flying the Maple Leaf are not cooperating, CR is always going to win. Always. He IS that smart.