Had Jazz turned it down, they would have kept shopping around until they got it, whether it be with Jazz, Sky, GGN?, or any other player existing or they could whip up (it's been done before.
Now that player has been secured and it's Jazz. The next logical step was to consolidate everything under that player, it shouldn't be a surprise to anyone. Nor that the fact that further consolidation down the road is forthcoming.
I'm glad it turned out that way. I'll take those single hits when they come.... beats trying to swing for the fence on every pitch and ending up striking out.
Express is going to be a smaller operation for at least the next 2 years. Perhaps longer. Who’s operation will shrink? Jazz? SKY? Both?
CHR will understand that some form of consensual discussion will have to take place about the near term and perhaps the medium term. Would CHR consider long term/permanent CPA fleet reductions? Unlikely without finding out where SKY fits in the long term Express plan.
From a practical perspective, it is cheaper for AC to park owned aircraft vs leased. That applies at mainline. Applies at Rouge. Applies at Express. 15 of the 25 SKY 175’s are owned by AC. So, if SKY shrinks below an operating fleet of 25, and are not part of the long term plan, how much sense does it make to sustain a second Express operator in the near to medium term?
Lots of ‘if’s’. Unlikely to see any clarity on this and other issues at AC before Q1 2021.
Just speculation, but the NB reductions vs the long term (post 2024) AC commercial plan may mean that a 50+ fleet of Express 76 seat jets is sustainable. Recall that per the current AC CPA, CHR has a guaranteed minimum fleet of 85 76-78 seat aircraft after 2025. Current Q400 fleet is 36.
While AC has maintained options to restore cancelled NB orders, demand on some routes could remain depressed such that the 76 seat aircraft would be a better fit.
For now, the available 76 seat jets at Express have been very useful in maintaining a presence for AC on many demand reduced routes. However, in 2021 as 737’s return to service and 220’s continue to arrive, it is assured that AC will want to put them to use. The question will be at what rate will AC remove the mainline NB Airbus from service.
Only time will tell.
fish4life wrote: ↑Fri Nov 16, 2018 11:03 pm New government legislation coming in that is going to make companies that contract flip eg CPA to CPA pay the same wage and keep people retaining their longevity for pay and vacation. C-86 I believe.
See contract retendering
http://www.mondaq.com/canada/x/753052/e ... egislation
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From the link above
“Transfer and Retendering
The Proposed Act would treat an employee's length of service as continuous regarding a federal work, undertaking or business if:
contract retendering occurred within the federal sector; or
the employee's employment was transferred within the federal sector or from a provincially regulated employer to a federally regulated employer.”