2013 Ground Schools

[El Comat]

I shared stinky's exact sentiments, which is why I left Jazz (been gone for a whopping 11 hours officially lol). I loved the job and the people I worked with, but I have 35 years left and I wanted to be part of a company that has more control and vision for its future. It was hard to give up almost 5 years of seniority and an easy commute, but long-term job "stability" (we all know what aviation is like) and opportunities are more important to me and my family. I really hope Jazz proves my fears wrong and manages to find a way to grow.

EC

[Fanblade]

Considering this date is less than 3 years away, it is likely a considerable concern for applicants to Jazz.

As stated in the Chorus quarterly results, does anyone know anything about the conditions for AC to apply its one time unilateral right to change the Minimum aircraft daily utilization guarantee on Jan 01, 2016?

Exactly what does this mean? Anyone at all know what the possible implications are? It looks like a unilateral block hour drop. Yes No? Can someone explain please.

[Fanblade]

Can I assume even Jazz employees don't know what this language means?

[rudder]

As stated in the Chorus quarterly results, does anyone know anything about the conditions for AC to apply its one time unilateral right to change the Minimum aircraft daily utilization guarantee on Jan 01, 2016?

Exactly what does this mean? Anyone at all know what the possible implications are? It looks like a unilateral block hour drop. Yes No? Can someone explain please.

Amended CPA terms - July 2009.

Expanded document available on SEDAR. Page 3 of Short Form Prospectus - November 2009:

In addition to establishing the annual minimum number of Block Hours on which the MADUG is based, the CPA
Amending Agreement provides Air Canada with the right to revise the MADUG effective in January 2016 in the event Air
Canada’s domestic market share for the twelve month period from October 1, 2014 to September 30, 2015 has decreased by a
fixed percentage compared to its domestic market share for the twelve month period from August 1, 2008 to July 31, 2009. In
the event of such a decrease, the CPA Amending Agreement requires that Air Canada and Jazz agree upon a revised MADUG by
November 17, 2015, failing which Air Canada shall have the right to unilaterally set a revised MADUG by sending Jazz notice
by November 20, 2015. The CPA Amending Agreement provides Jazz with the right to send Air Canada notice by December 18,
2015 of Jazz’s intention to either accept the revised MADUG or exercise its right to terminate the CPA as of December 31, 2016.

[DHC-1 Jockey]

Air Canada shall have the right to unilaterally set a revised MADUG by sending Jazz notice by November 20, 2015. The CPA Amending Agreement provides Jazz with the right to send Air Canada notice by December 18, 2015 of Jazz’s intention to either accept the revised MADUG or exercise its right to terminate the CPA as of December 31, 2016.

The parts in bold don't give me a warm and fuzzy feeling...

[DHC-1 Jockey]

And just so I'm understanding this right and to put it into layman's terms, Air Canada can say "we're going to lower your block hours and there's nothing you can do about it." Then, Jazz can either take their lumps and reduced flying, or say "Screw it" and close up shop?

[Fanblade]

And just so I'm understanding this right and to put it into layman's terms, Air Canada can say "we're going to lower your block hours and there's nothing you can do about it." Then, Jazz can either take their lumps and reduced flying, or say "Screw it" and close up shop?

I'm not certain that is correct. But to tell you the truth I am not sure and why I am asking.

Thanks for posting the wording Rudder. But you didn't explain anything. Reading isn't my problem...understanding is. As you can see from the post above not understanding may cause undue concern.

Is there not a Block hour Guarantee and a MADUG guarantee? How would unilaterally changing one metric negate the other? Or are the two metrics intertwined somehow? I have asked questions but it seems to me the straight answer is no one is completely sure as the actual wording of the CPA is confidential.

I realize I probably just exposed how much I don't understand. . However I think that goes for most.

Is there risk from the above wording in 2016? If so, how much?

Could it actually be as blunt an instrument as DHC-1 Jockey just posted?

[Full Ins]

Sounds like a good question to post to Steve L. on his blog on jazznet.

[Inverted2]

Sounds like a good question to post to Steve L. on his blog on jazznet.

Does he even update it more than 3x a year? They're pretty secretive these days. I haven't even heard a memo from doom and gloom (Joe) in ages!

[Splash]

provides Air Canada with the right to revise the MADUG effective in January 2016 in the event Air
Canada’s domestic market share for the twelve month period from October 1, 2014 to September 30, 2015 has decreased by a
fixed percentage compared to its domestic market share for the twelve month period from August 1, 2008 to July 31, 2009. [/i]

This makes for some interesting speculation. Somewhere in the public domain the % change in market share exists. I would be curious to see what that number is.

[Fanblade]

I think the percentage is considered commercially sensitive and is not in the public domain. Which is a problem for people making decisions about careers at Jazz.

According to AC investor relations

2008 was 57% domestic market share.

2011 was 55%

So we know AC's domestic market share is declining. At its current rate of decline it will be 4% lower in 2014 than 2008. Likely Encores start will accelerate the decline.

What we don't know is the trigger percentage. Even if triggered no one seems to understand (I think) the potential out come.

[nottellin]

For someone who leaves Jazz early, do they get any money back from the pension contributions they have made? I have never been in a defined benefit plan so just curious how that works for you guys.

thanks

[Lateralus]

For someone who leaves Jazz early, do they get any money back from the pension contributions they have made? I have never been in a defined benefit plan so just curious how that works for you guys.

thanks

I left last summer after 4.5 years. You do get your pension money back however you must put it into a locked in RSP. I think the other option was to receive the pension money when you retire and get paid the monthly instalments.

When I left everything was mailed to me from Jazz and I just sat down with a financial planner at my bank who filled out all the paperwork and 6 weeks later had the money in the locked in account, was pretty seamless actually.