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Old fella
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Globe and Mail

#1 Post by Old fella » Tue Feb 09, 2016 2:08 pm

Some interesting thoughts in the Globe as of late.

http://www.theglobeandmail.com/report-o ... e28672216/

Also an article on Porter and possible sale. There is a link but for subscribers only to date.
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brooks
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Re: Globe and Mail

#2 Post by brooks » Tue Feb 09, 2016 4:39 pm

Two very interesting developments today in the news.

WestJet and bombardier, and Porter looking for a buyer.

http://www.theglobeandmail.com/report-o ... e28682130/

http://www.theglobeandmail.com/report-o ... e28674694/

http://www.cbc.ca/news/business/porter- ... -1.3441048
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Re: Globe and Mail

#3 Post by watermeth » Tue Feb 09, 2016 4:56 pm

brooks,
do you think you can post the article's content about porter for those that are "limited" ? ;)
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Re: Globe and Mail

#4 Post by ptc » Tue Feb 09, 2016 5:15 pm

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Re: Globe and Mail

#5 Post by brooks » Tue Feb 09, 2016 10:09 pm

Double post...

I am too cheap to pay for the Globe Unlimited.. Can Anybody else crack it?
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Re: Globe and Mail

#6 Post by Boreas » Tue Feb 09, 2016 10:47 pm

brooks wrote:
Double post...

I am too cheap to pay for the Globe Unlimited.. Can Anybody else crack it?
+1

Yeah, most of us on here are pilots! :mrgreen:
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Re: Globe and Mail

#7 Post by Old fella » Wed Feb 10, 2016 7:57 am

TIM KILADZE And GREG KEENAN
Porter Airlines searches for buyer, sources say
SUBSCRIBERS ONLY
The Globe and Mail
Published Tuesday, Feb. 09, 2016 3:40PM EST
Last updated Tuesday, Feb. 09, 2016 6:15PM

Toronto’s Porter Aviation Holdings Inc. has been quietly searching for a buyer, throwing the future of its business model as a classy, convenient rival to bigger Canadian airlines into question.

The search process is ongoing, according to people familiar with the plans, and there is no guarantee it will result in a transaction, but the company’s financial backers have been actively looking for an exit strategy through a sale.

Better known as Porter Airlines, the company, founded in 2006 by Robert Deluce, flies out of Toronto’s Billy Bishop Toronto City Airport. When it launched, its goal was to take on Air Canada and WestJet Airlines Ltd. by offering “premium economy” service, with perks such as free wine on board and WiFi in its terminal lounge, as well as providing the convenience of flying from downtown.

Porter is popular with crowds who fly short distances to cities such as Montreal and New York, and is often used by business travellers because of its proximity to downtown Toronto. However, its backers have had few options for cashing out their investments.

An investor group known as Regco Capital Corp., led by Mr. Deluce, owned 43 per cent of Porter on launch. Other investors include OMERS’s Borealis Infrastructure Management Inc., EdgeStone Capital Partners, GE Asset Management Inc. and Dancap Private Equity.

The backers have tried to initiate an exit process before. Porter planned an initial public offering in 2010, going so far as to market the company to potential public investors, but volatile markets ultimately spooked buyers and the deal was pulled. An IPO has not been tried again since.

Porter’s earliest backers have now been invested for nearly a decade. That time horizon can be troublesome for private equity players, such as EdgeStone, who typically have a five-to-seven-year time frame for holding their investments.

Asked about the sale process, Porter spokesman Brad Cicero said “there is no truth to this rumour. We have heard this many times over the past several years. Porter is not for sale and there have been no discussions with any parties.”

“We are positioning ourselves very well to complete a future IPO, as has previously been reported,” he added.

Industry rivals offer a different take. “It’s not a secret that Porter’s been on sale for quite some time,” said Gregg Saretsky, WestJet’s chief executive officer. Asked if his airline is an interested buyer, he said no, adding that WestJet can expand in Eastern Canada organically.

Air Canada spokesperson Peter Fitzpatrick said "as a policy, we do not comment on market speculation," when asked whether the airline was interested in purchasing Porter.

Porter’s backers have found ways to make some of their money back. In 2015, the company sold its Billy Bishop airport terminal to a consortium of investors backed by AGF Management Ltd., and which included Toronto sports magnate Larry Tanenbaum. The purchase price was never disclosed, but was reported to top $700-million – a figure many people have said was extremely rich.

Because Porter snagged such a premium price, the company was able to pay down its debt and also return some capital to its backers.

The search process for a potential buyer dovetails with Ottawa’s decision to block a runway expansion at Billy Bishop airport. Porter currently flies short-range Bombardier turboprops, which limits its possible routes. In 2014, the airline announced plans to expand the runway by building into Lake Ontario, which would have allowed it to fly longer-range jets.

Porter needed approval from the City of Toronto, Ports Toronto and the federal government to extend the runway. After the Liberals were elected in October, Transport Minister Marc Garneau killed the project. The Liberals argued any expansion was too damaging for the city’s waterfront.

However, a tunnel recently opened that connects the island airport to mainland. Until last July, passengers had to take a short ferry ride to the airport. The tunnel makes getting there much more convenient – something Porter keeps advertising in downtown Toronto.
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