EIC buys MFC

[bobcaygeon]

I doubt that. Look at Chorus Aviation's financials. CPA's pay shit for ROI.

I have no idea how you came up with that statement. Every financial they have had is up 10-20% across the board. The only decrease is in CPA incentive pay for not meeting OTP etc (approx 4% decrease). The stock is up 50% over the last two years and pay 5.5% dividend.

That appears to be a very healthy stock. In fact I would say it's currently under valued.

Fairfax Financial (Prem Watsa) Canada's version of Warren Buffet felt that a a $200 Million investment in Chorus was appropriate. That says a lot.

I currently have no position in Chorus Aviation.

Good for a CPA carrier but as a business the ROI and ROC is quite low for the capital involved.
Why take 5-10% when you can get more on the open market?

If the pilot shortage continues as predicted why would you crew a plane for cpa rates? Use the “limited resources” where there’s more $$$. It will come down to that.
Jazz is fubar’d the minute someone like Georgian low balls them again for AC flying. Jazz has shrunk significantly.

[oldncold]

Logically it makes sense as most of eic companies have had to park planes over the last12-18 months due to crew shortages .
So if they can get low time 500 hour class 4 or3 instructors to go right seat in a king air or metro . they can keep the wages very low average 28kyr avg eic first officer king air but incentivize the opportuniy to fly alot by offerng a pay hike to an young instructor that may only make 18-25 first year instructing . . most know the wages on the east coast are even lower than central canada or out west . eic desperately needs a pipeline . to feed their companies .

they have made a conscious choice not to pay more to crews . will accept the revovling door if they can feed the pipeline .

[goingnowherefast]

500 hours of instructing, then a year in the right seat of a king air/metro is enough for your ATPL before off to Jazz/Encore. Doesn't solve the shortage of captains. Although, for those chasing tin, money doesn't matter. They just want that instergram picture from the front of a freshly painted CRJ.

a 5000hr metro 3 captain can work for pretty much whoever they want. It won't be the company with salaries in the basement.

[FL007]

Logically it makes sense as most of eic companies have had to park planes over the last12-18 months due to crew shortages .
So if they can get low time 500 hour class 4 or3 instructors to go right seat in a king air or metro . they can keep the wages very low average 28kyr avg eic first officer king air but incentivize the opportuniy to fly alot by offerng a pay hike to an young instructor that may only make 18-25 first year instructing . . most know the wages on the east coast are even lower than central canada or out west . eic desperately needs a pipeline . to feed their companies .

they have made a conscious choice not to pay more to crews . will accept the revovling door if they can feed the pipeline .

I'm not sure where you got that information as I have friends at PAL making more than 40K first year flying the 1900s right seat, the Dash ops are definitely paying more than that, too.

As well that press release has PAL aerospace all over it? Are MFC instructors going to be put under the PAL pilot group?

“We are excited to be adding this team to PAL Aerospace as we continue to open new markets and grow our capabilities.”

[tps8903]

From Q1 2018 release:

The acquisition of CANLink Global Inc. ("Moncton Flight College") supports the long-term growth and operational requirements of our airline and aerospace portfolio by providing us with a unique ability to address pilot recruitment and retention.

[LTR123]

It's a great way to get a pipeline of pilots going.