AC and TRZ Agree to Terminate Arrangement

[Sharklasers]

I have read the corporate disclosures. So, I know what has been divulged externally. And yes, significant measures have been taken.

This thread was interrupted by a comment contrasting SWG to TS. That was the point of the reply.

SWG has no lifeboat. Where SWG ends up is exactly where TRZ would end up without the AC deal.

Agree, I believe the TRZ merge will occur to save it. AC will probably get a bailout package as a condition. Lucky TRZ shareholders!

Lucky TRZ pilots who get to enjoy the job security of working at AC without having to work there at all.

[FL320]

I have read the corporate disclosures. So, I know what has been divulged externally. And yes, significant measures have been taken.

This thread was interrupted by a comment contrasting SWG to TS. That was the point of the reply.

SWG has no lifeboat. Where SWG ends up is exactly where TRZ would end up without the AC deal.

Agree, I believe the TRZ merge will occur to save it. AC will probably get a bailout package as a condition. Lucky TRZ shareholders!

Lucky TRZ pilots who get to enjoy the job security of working at AC without having to work there at all.

And some of them who will become richer thanks to the deal than having worked there for 15 years..

[airboy1]

It’s not too late to buy TRZ shares; they’re still at a discount price

I don't invest in airlines (for these very unpredictable reasons). But hopefully the seniority can get integrated quickly for these guys and gals and get them flying again! Best of luck.

[rudder]

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[rudder]

this is also applicable to you...

100% agree.

Best of luck to all.

[Jumbo744]

Lol....Sunwing bankrupt or close to it ? You have no idea what you are talking about.

[RRJetPilot]

Maybe not bankrupt... But who in Canada will have money to leisure travel. People are over leveraged and on the brink of bankruptcy. The Canadian economy was running on debt fueled by the "wealth effect". Caused by rising home prices. The chickens have come home to roost. Unfortunately. It is very sad and I wish we will come out of this whole. But I'm a realist and am prepared for the worst. Those with cash and savings will come out ahead. Those with LOC, HELOCS, high ratio mortgages, are done.

[Daniel Cooper]

Perhaps the competition bureau will announce a delay in the report due to their workers being at home due to virus.

[Gilles Hudicourt]

I sense that the TRZ Executive (and shareholders) believe that they have a guaranteed way out of the current crisis. Perhaps that will be the case. I hope so for the TS staff.

You don't seem to realize that the buyer will only buy the product if at the time of closure, the seller still has a product to sell. If you make me a conditional offer on my bungalow, conditional on you being able to obtain a permit to add a second floor, and before the permit comes through, my house burns down, you are not only released from your commitment to buy but you also get a refund on your deposit.

Transat Executives are not sitting on their hands because Air Canada has offered to buy. They are outside with hoses, backhoes and chainsaws trying to save the house from the bushfire threatening to burn it down and for which they have no insurance.....

[altiplano]

Perhaps the competition bureau will announce a delay in the report due to their workers being at home due to virus.

With the changing landscapes I could see that they would need to significantly revamp the report

[Fanblade]

Perhaps the competition bureau will announce a delay in the report due to their workers being at home due to virus.

With the changing landscapes I could see that they would need to significantly revamp the report

It really doesn’t matter what the competition bureau has to say if failure of one party is at stake. They look at competition only. So yes it will be negative. What they don’t consider at all is if one party would fail, and the same uncompetitive result happens anyway.

That Conundrum is left to the Minister to decide. Mr Garneau.

If the competition will fail anyway, he will almost guaranteed over ride the competition Bureau and approve the deal.

I have seen this movie.

How do you think the Canadian AC merger was approved? Competition Bureau said bad for competition. The Liberal Minister said yeah but competition is failing anyway. So he approved it.

Imminent failure of one party actually gives the Minster more political cover to approve a transaction that the competition bureau does not recommend and might be bad for consumers.

IOW the current situation only increases the likelihood that the Government will give the deal a green light.

[hithere]

Yes but does AC want to pay $18 a share for it and does it want extra capacity when it’s shedding its own?

[Gilles Hudicourt]

Yes but does AC want to pay $18 a share for it and does it want extra capacity when it’s shedding its own?

This is not a case where the Federal Government is imposing anything on Air Canada. It will proceed with the purchase if it so desires, or withdraw the offer if no longer in its interest.....

[98 Corolla]

Has a seniority list merger ever happened during a layoff period? What happens then?

[airboy1]

Has a seniority list merger ever happened during a layoff period? What happens then?

Does it matter? It's not like pilots have a say in the matter.

Probably more politics at play, TRZ needs this to survive. I still think it will be a conditional requirment for a bailout package at AC. Lots of jobs at play.

[flyinhigh]

What job security?

If I and my colleagues had job security we would be at work and hundreds would be layed off at AC instead. So do tell, what job security am I enjoying as I apply for EI due to ALL operators shutting down??

I've stayed out of this topic for quite some time, but cannot anymore. I am just getting tired of listening to a handful of AC drivers telling me how I feel and how I am riding the high life with no worries. Give me a fuckin break, I have a family, I have a house, If go to work and my wife's employer finds out I went out of country, she is off without pay for two weeks (oh, she's now the sole income earner due to the impending layoff).

Stop arguing about what AC will or will not do. These are turbulent times and yes they may pull out of the deal, I know if I was management I would look at it extremely hard. What can I do about it? NOTHING and quite frankly I don't give a shit as there is much larger issues at play, kinda like how to feed my family. On the flip side, AC may look at it and the positives will out way the negatives and the deal will still get gone whether you like it or not, and you know what, I still need to figure out how to feed my family.

End of Rant, but if one more person tells me as a Transat pilot how I feel...

Oh and for the ones that want to bitch about my grammer, @#$! off.....

Lucky TRZ pilots who get to enjoy the job security of working at AC without having to work there at all.

[Gilles Hudicourt]

Has a seniority list merger ever happened during a layoff period? What happens then?

Does it matter? It's not like pilots have a say in the matter.

Probably more politics at play, TRZ needs this to survive. I still think it will be a conditional requirment for a bailout package at AC. Lots of jobs at play.

Some people are trying to turn a commercial agreement taken freely between two corporations in a government imposed aid package to save Air Transat from bankruptcy.

Back to the facts:

1) Air Canada made an unsolicited offer offer to buy Transat, which was not for sale.
2) The initial lower offer was increased to $18 after other entities attempted to outbid the AC offer
3) Air Canada asked the governments to approve the transaction
4) The governments will approve or refuse
5) If AC receives the green light allowing it to proceed with the purchase, it will be under no obligation to do so, only to abide by the agreement that the two parties signed.

The politicians have no say in this. None.

[Daniel Cooper]

Has a seniority list merger ever happened during a layoff period? What happens then?

I would say any pilot on layoff before the seniority list merger will remain on layoff. Even if pilots junior to them are merged into the list. ie. AC pilots will remain laid off while TS pilots are employed.

Any additional layoffs after the list merger will be in order of seniority. ie mostly AC pilots and a few TS pilots layed off while the majority of TS pilots remain employed.

[rudder]

Some people are trying to turn a commercial agreement taken freely between two corporations in a government imposed aid package to save Air Transat from bankruptcy.

Back to the facts:

1) Air Canada made an unsolicited offer offer to buy Transat, which was not for sale.
2) The initial lower offer was increased to $18 after other entities attempted to outbid the AC offer
3) Air Canada asked the governments to approve the transaction
4) The governments will approve or refuse
5) If AC receives the green light allowing it to proceed with the purchase, it will be under no obligation to do so, only to abide by the agreement that the two parties signed.

The politicians have no say in this. None.

Gilles,

Good summary of the facts. But add one more fact - CR.

He has a track record of 100% success since taking over at AC and has never let a good crisis go to waste. No one who has gone up against him has come away unscathed. And he is the master of leverage.

His favourite quote? “Nothing focuses someone’s attention more than showing them their own grave”.

This is no longer a simple up or down choice. There are many new moving parts. And government will be involved in those discussions. But the final decision will rest with AC.

[TFTMB heavy]

Has a seniority list merger ever happened during a layoff period? What happens then?

I would say any pilot on layoff before the seniority list merger will remain on layoff. Even if pilots junior to them are merged into the list. ie. AC pilots will remain laid off while TS pilots are employed.

Any additional layoffs after the list merger will be in order of seniority. ie mostly AC pilots and a few TS pilots layed off while the majority of TS pilots remain employed.

You are correct, you just have the names of the players backwards. All of TS pilots are laid off and a fraction of AC. If the lists are merged during these layoffs, all TS pilots senior to AC pilots that are still working would remain laid off. Meaning that if you are senior and laid off you can't go bump a junior pilot that is working when the lists merge. You get called back in order of seniority.