Ex-CAI pilots plan boycott

[leftyxl]

awwww isn't that nice

[Hadji Ramjet]

balls,

If your solution is so simple and elegant, and the only fair one, why haven't is been proposed by ACPA during the talks with ALPA-Jazz?

[Jaques Strappe]

The majority at Jazz would sign on to a BOTL agreement tomorrow just like they would have years ago but ALPA wont take it to the membership for a vote. Instead they want to lead the race to the bottom.

The scene is set for another mass hiring at mainline with Jazz still not signing on because some ex beaver driver thinks he should be a 767 Captain.

Change your MEC to one that speaks for everyone and you may see some change.

[exbengal]

"instead they want to lead the race to the bottom"

j/s a few months ago you were yapping off about not getting paid for you recurrent g/s and sim. it was pointed out to you that your union had negiotated it away for scope unbeknownsk to you. its also been pointed out to you that you have pissed away millions in wacon for scope, so without sounding too rude, WTF IS LEADING THE RACE TO THE BOTTOM,

[Jaques Strappe]

Hi exbengal

Ask your MEC about trying to negotiate with Air Canada to fly the 319's at Jazz rates. Moves like that hurt the entire industry, not just us.

That is what I mean about race to the bottom.

[exbengal]

Hi J/S

Ask your mec about "jets for jobs", or how about trying to shift the Dash jobs to tier 3, or how about the last round infront of Teplitsky, where acpa tried to take all of our jobs, and you guys spent how much on scope??????????

seems like a good deal to me .............................NOT,

moves like that hurt our industry me friend
Guess whos the fastest growing airline in North America?
and how much did you say youve given up for scope?
Miltons played acpa like a piano in a whore house, so please don't complain here about your training for free, just look within.

acpa has set this profession back 50 years

[Jaques Strappe]

Exbengal

I enjoy your posts and respect your opinions even if I don't agree with all of them. You seem like an intelligent individual and I think you would agree that it takes two to tango and there are always three sides to a story.

For me to say it is all ALPA's fault and for you to say that it is all ACPA's fault would be inaccurate and get us nowhere.

Suffice it to say, I think both parties here have played silly bugger in an attempt to" one up" the other guy. The end effect is that it damages the profession.

This is what I mean when I say we need new blood at both levels. That means no more Austin guys who think they should be 777 commanders along with no more "jets are us" campains.

Here we are, on another eve of growth and ship is once again, about to sail. Wouldn't it be nice if we could all be onboard?

[exbengal]

Jacques, couldn't agree with you more

[bcflyer]

AMEN to that!!!

[Clint23]

Will this ever end?


Globe says seniority issues roosting at ACE Aviation


2005-10-13 07:00 ET - In the News

The Globe and Mail reports in its Thursday, Oct. 13, edition that any potential revisions to Air Canada's pilot seniority list will be carefully targeted, says a lawyer representing the airline. The Globe's Brent Jang writes in the Business Ticker column that any changes would focus on "errors or anomalies that do not conform to the principles set forth for the determination of the pilot seniority," Roy Heenan said in a letter to former Canadian Airlines International pilots now working for Air Canada. The ex-CAI pilots started a campaign Wednesday to protect their positions on the seniority list, accusing Air Canada management of "rock-bottom ethics." Air Canada and the Air Canada Pilots Association, which both support a seniority review, said they regretted the decision of ex-CAI pilots to boycott the mediation process. ACE Aviation Holdings' Air Canada added that mediator Martin Teplitsky will serve as arbitrator in potentially reviving a cancelled order for new Boeing jets. ACE Aviation Holdings Class B stock shed 56 cents to finish in Toronto Wednesday at $33.04.

[Machiavelli]

I like the new blue paint job...

[Rebel]

Hmm I’ve always avoided entering this argument as it didn’t effect me, however if I were AC management I would simply tell the ex-CDN pilots and ACPA either get on board or move on..For those of you that don’t know the whole story a certain element within the ex-CDN group have tried to sabotage AC at every turn on everything from respecting the AC uniform to flying the aircraft the AC way..

AC doesn’t owe anyone a living, period.

[WF9F]

Where did pilots with EPA and WardAir sit when CAI bought them? Did they not go to BOTL?Just asking because i heard they did .There are also CRA guys who were not with CAI who bumped ahead of AC guys. Is this correct? If so the list needs to be fixed.Leave it up to lawyers to put a spin on this other than one of fairness and common sense.I would bet most people agree CAI pilots came out ahead with regard to pay and keeping a job.We have all lost years worth of seniority at this racket with so many companies going out of business in the last number of years but until there is one pilot list for the whole aviation industry(which will never happen) that is the way it goes.
If the above is true, it is a bit much for the CAI guys to think they are entitled to bump into AC like they did.
The great Canadian aviation industry where everybody is screwing or trying to screw everybody else.( pilots that is)

[Lost in Saigon]

None of the "above" is true.

Who has been telling you these lies?

Air Canada bought Canadian BEFORE they went bancrupt. The seniority lists were merged as per Canada Labour Law.

It has been repeatedly reviewed and appealed as per Canada Labour Law.

It is only now that the Original Air Canada pilots (after exhausting all legal means) have decided to hire their own mediator
in a desparate last attempt to try and gain more seniority.

You can read the Ex-Canadian pilots version about it here.... http://www.formercanadianpilots.ca/

[Rebel]

Lost in Saigon

You have no idea what you're talking about..

[WF9F]

With regard to EPA and WardAir and others that went under CP or Canadian,what was done with the pilot lists.Were they merged or did some of them get BOTL?
To alot of people, myself included, Canadian was bought on the brink of being bankrupt and closed for business.Your technically right , it was BEFORE they went bankrupt.

[Viking]

This has probably been stated previously. As Air Canada purchased Canadian Airlines BEFORE they went bankrupt and MERGED the two airlines, they should be prepared to face the seniority issue as to be equally fair on both sides. This means 1 for 1. If they wanted their "cake and eat it too" they should have let Canadian run it's course and fold. Then Air Canada could have been selective and pick only what they wanted, which means re-hire a limited nubmer of ex-CDN pilots and slot them below. To say Air Canada was forced by the feds to buy CP is a load and a half. Air Canada was a fully seperate entity and had ZERO obligation to purchase anything it didn't want. Air Canada weighed the consequences before the purchase/merger, Air Canada must accept it's actions. No whining about a tummy ache after eating the whole jar of cookies.

[Rebel]

Viking

You have no idea on what went down perhaps you should dig out some old news articles to educate yourself..

What is most important is the financial damage that this small group of disgruntled former CDN employees’ have done to AC and it’s still going on. They should be FIRED. Period.

[Jaques Strappe]

Viking

You are correct, had CDN been a viable company like Westjet, a 1 for 1 would be good. CDN had already been selling routes and simulators to make payroll and there was no way the govt was going to let it die then allow the vultures to pick it apart. Liberals were already unpopular in the west. They were very public about this.

Saigon

There are indeed some CRA guys who were given a 1990 DOH by Canadian on the eve of the merger. These guys went directly into the Air Canada mainline while original AC guys were shown the door. I fly with them regularly, coming back from furlough while some CRA guy has been flying around in an Airbus the whole time.

[Lost in Saigon]

First off, the merging of seniority lists was done with ratios. It doesn't matter who has what DOH because it is simply a ratio of Blues and Reds.

But Secondly, No CRA flowthroughs hold 1990 Dates of Hire. Just look at the Jan 2002 seniority list. They all have their on the property dates at CAIL. They were supposed to by agreement get 1990 DOH's but this never happened for some reason. Since Jan 2003, ACPA no longer publishes the lists with dates of hire. I guess they don't want you to compare the Blues and the Reds and see how much ahead the Reds are.

And what is this crap I keep hearing about flowthroughs on the eve of the merger. This never happened. No one came over on the eve of the merger. Who told you this?

This subject has been covered in depth on the Air Canada Pilots Private forum.

The flowthrough agreement dates back to Feb 1997 and it was in effect until Dec 2000 when the last course went through. 100 came before Oct 17th and 40 came after Oct 17th.

The flowthrough stopped in April 1999 when CAIL stopped hiring. It continued again about 18 months later in Sept 2000. This was long after AC bought CAIL. Each flowthrough pilot had his date on the property as his DOH.

There are about 6 CRA flowthroughs who were hired in Sept and Oct prior to the Oct 17th merge date. When Lordon changed the date from Jan 2000 to Oct 17, these “lucky” 6 were given their relative CAIL seniority as per the agreement and moved up to their rightful numbers. Is this what you have a problem with?

Remember, we are talking about only 6 CAIL pilots. If it wasn’t these 6, it would have been 6 other CAIL pilots who were ratioed in with the AC pilots. It would not have changed anything on the Red side. Those OAC types you mentioned would still have been laid off.

[balls]

CAIL was in bankruptcy. The were in CCAA with no hope. That was clear, as Konrad Von Finkenstein stated to allow the merger to go through despite his competition concerns, and creating a majorly dominant carrier.

In CCAA AC employees took a major kick in the gonads. The CAIL people did not in their bankruptcy. In fact, wages improved dramatically for most employees, including the pilots.

If there was to be a rationalization as one would expect in CCAA, that should have happened prior to the CAIL employees coming to AC, then merging into the AC list as the dowsized company. Literally, domestically, there was only one route that AC was not operating at the time - Whitehorse.

Much of the international equipment was mothballed from CAIL. Internationally they brought a few routes.

Coming to AC to improve working conditions without any cuts, and improve relative seniority isn't right. The CIRB said so in their Decision that killed Mitchnick, handed down by Lordon. All that is being asked right now is that the Keller finding be reviewed under that decision. What is the problem with that?

The ad in the G&M was nasty. So what, $55,000 for that page was probably subsidized by ACPA, because ACPA has lent money, a couple of years back, to the ALPA committee to carry on their fight against the AC pilots. How likely is it that money will be repaid with legal fees and $55G adverts?

[Viking]

What is still not clear to me is people saying "the gov. would not let it die".
Does that mean more cash injection by the feds? No Way. So the sale was forced by the feds on to Air Canada? No way either. It was Air Canada's chioce, they could have said no. Even though AC had previous talks with CDN, they were not binding.....

[balls]

What is still not clear to me is people saying "the gov. would not let it die".
Does that mean more cash injection by the feds? No Way. So the sale was forced by the feds on to Air Canada? No way either. It was Air Canada's chioce, they could have said no. Even though AC had previous talks with CDN, they were not binding.....

Politically, NO, CAIL was not going away.

The hostile move on AC was orchestrated behind the scenes with the Minister of Transport David Collenette, and his close friend Schwartz. Those two along with AMR CEO Carty CAIL's Benson, they schemed behind the scenes in the early part of 1999. The plan was ready in the late spring/early summer of 1999.

The law that existed at the time limited foreign or one owner share portions in AC. There was no need for poison pills, or even concern about takeover - unless the law was changed.

In the summer of 1999, TC Minister Collenette suddenly, and without warning, announced that he was in fact doing just that - suspending the law to allow a takeover of AC - without telling or warning AC of this wonderful plan for Air Canada of course.

Facilitated by the Minister, with AC out of the loop, Onex' Gerry Schwartz, AMR's Carty and CAIL's Benson had hatched a plan to takeover AC, use AC cash on hand to finance that takeover in a hostile action against AC. AC resisted of course.

Even though CAIL had been on the ropes since the late 80's the government was never going to let CAIL liquidate. CAIL had restructured numerous times, but never in a really earnest manner to get the costs under control. They had run out of time, out options and out of strikes. Their inning was done.

Politically the government made it absolutely clear to everyone that CAIL was not going to fail. Either the Onex plan was going to merge AC and CAIL, or there was some other plan.

The end game came when the action was challenged in court. It was felt that AC shareholders would have probably turned down the takeover offer, but not sure enough that the court decision was a welcome one anyway.

----------

CANADIAN BUSINESS September 24, 1999 Welcome aboard Air Kansas

It's funny how some things play out, isn't it?

Back in 1994, Gerry Schwartz, the founder and CEO of Onex Corp., a leveraged buyout specialist, had soured on Canada. Through acquisitions, he'd shifted the bulk of his assets into the US. At precisely the same time, AMR Corp., the parent company of American Airlines, was bailing out Canadian Airlines. AMR put up $246 million for a chunk of Canadian preferred shares, and soon, the perennially troubled airline resumed its downward lurch. In time, AMR wrote down its entire investment because of Canadian's steep losses. Schwartz, meanwhile, declared to Canadian Business that Onex had become "a US company that happens to be based in Canada." Dismissively, he added, "Being a market leader in Canada is like being a market leader in Kansas."

Welcome to Kansas. It's 1999, and Canadian Airlines, once again, is running out of money. In Ottawa, the Liberals are worried. Canadian Airlines, they believe, enjoys almost mythic status in Western Canada, and the political wisdom is that a government that allows the airline to fail is a government that will be punished on voting day. In late August, Transport Minister David Collenette takes the extraordinary step of suspending competition rules for the airline industry to allow the private sector to propose solutions for the Canadian Airlines crisis. Within days, Schwartz announces a bid to buy both Canadian and Air Canada and combine them into one presumably stronger unit. Suddenly, Gerry Schwartz has emerged as a Canadian nationalist and savior of a troubled airline.

It's all very strange and puzzling. Disclosures since then have done nothing at all to dispel the feeling that the plans of American Airlines and Gerry Schwartz are, quite literally, way over the heads of most Canadians. There are strange things happening in the blue sky of the Great White North.

For instance, Canadians have now learned that the cash infusion by AMR five years ago had one very important string attached that discourages other bidders for Canadian Airlines. Through conversion rights, AMR has effectively put a price tag of $430 million on its investment in Canadian Airlines. That, at any rate, is the price anyone but Schwartz would have to pay-since he and AMR are partners in a takeover bid, he gets a steep discount.

Cynics may see AMR's 1994 investment as part of a plot by AMR to ultimately exercise undue control over Canadian aviation. They may also see Schwartz's impeccable Liberal connections (he's a big contributor and socializes with, among others, Prime Minister Jean Chretien) at work in David Collenette's decision to suspend the competition rules. I suspect that Schwartz played it straight and that AMR is doing nothing more than responding to an opportunity. But the fact remains that American Airlines is engaged in a bitter and costly competition with United Airlines, which just happens to be allied with Air Canada. Whether by design or not, the Canadian airline industry could well become a pawn in a larger struggle between two airline superpowers. Or, as Schwartz so famously described Onex, the merged Air Canada and Canadian Airlines could become "a US company that happens to be based in Canada." How do you like Kansas so far?

Arthur Johnson
--------------

Canadian tackling six hurdles to merger with Air Canada
Ailing airline meeting with rival, considering other options
OLIVER BERTIN
Transportation Reporter
Friday, November 26, 1999


Canadian Airlines International Ltd. is holding high-level meetings with Air Canada so it can overcome six hurdles that could block a merger of the two companies.

But the ailing Calgary-based airline is also checking out the alternatives just in case the merger falls through, it said in a directors' circular issued yesterday in response to a takeover offer from rival Air Canada.

These alternatives include a restructuring of Canadian's operations, the sale of the regional airlines, or a cash injection that would put the airline back on its financial feet, the circular says.

While the directors appear to lean toward a merger with Air Canada, the fate of the troubled airline is still very much up in the air, a Canadian Airlines source said. When asked whether the two airlines will in fact merge, the source said: "It's hard to tell. The odds are 50-50."

In the meantime, Canadian's directors are advising shareholders to hold onto their shares until Dec. 1, when the board will give its final recommendation. In the circular, the directors said they need more time to assess the Air Canada offer and the feasibility of any options Canadian has left.

Air Canada announced Oct. 19 that it would offer $2 a share -- or a total of $92-million -- to buy Canadian. That offer expires Dec. 7, and any future offer "would not be as rich," spokeswoman Laura Cook said.

Air Canada intends to operate Canadian for the time being as a separate company with its own brand name, head office and aircraft. But Air Canada has acknowledged it may merge the two airlines into one efficient operation as soon as it has restructured Canadian's debt.

Canadian's directors have been meeting frequently in recent weeks to study the Air Canada offer and the alternatives to a sale. Kevin Benson, Canadian's president and chief executive officer, also met with senior executives of the Oneworld airline alliance in Toronto on Monday, and intends to meet with them again next week.

The six Oneworld members, led by American Airlines Inc. and British Airways PLC, are weighing two prime options -- keep Canadian in their camp and bail it out, or sell it to Air Canada and look for other ways to pick up passengers in Canada.

In the circular, the directors placed the onus on American Airlines and Air Canada to remove hurdles to a merger. They also hinted that the federal government should smooth the way to a successful deal.

The six hurdles are:

Canadian's directors want to know whether American intends to clear the way to a merger. American has the ability to block the sale using its share-exchange rights, whether or not Canadian approves. "Canadian shareholders will not be able to receive the consideration offered" by Air Canada unless those rights are removed, the directors said. In effect, this means American's shareholders will have to put the interest of Canadian's shareholders ahead of its own.

Canadian's directors want Air Canada to explain how it intends to restructure its debt before they approve a merger. "The board believes it should have an understanding of the debt and operational restructuring and any interim financing prior to making any recommendations," the circular said. Air Canada said yesterday it is not prepared to comment on the restructuring.

The directors are worried that employees and other shareholders will exercise their options, resulting in a big jump in the number of shares outstanding. That could be a deal killer since Air Canada has placed a limit of 5 per cent on the number of additional shares it is prepared to pay for.

A similar problem has to be resolved with the convertible and exchangeable securities, and the employee entitlements.

The directors noted that the merger will need to be approved by the federal government. In the circular they, in effect, ask Ottawa whether it intends to approve a merger without imposing any deal-killing conditions, and

The directors also want assurances that the merger will slide past the Competition Bureau without onerous conditions before they are prepared to give their approval to the merger

============

From The G&M November 29, 1999

.........

Given the limited number of options facing Canadian, analysts and insiders believe Mr. Milton and Mr. Carty are smart enough to put their differences aside.

"Carty would not have reached the position he has [also AMR chairman] if he let personal feelings get in the way of his business decisions," a senior Air Canada executive said. "He has to account for his actions to the board [of directors at AMR] and do what is best for his shareholders."

Mr. Carty was not available for comment yesterday because of the Thanksgiving holiday in the United States.

Company officials and analysts run down the list of issues that could block a merger, and say most of them can easily be resolved.

Montreal-based Air Canada said Friday it would probably agree to some of Canadian's demands, most notably disclosure of its interim financing plan, while other concerns are expected to evaporate when the time comes for a decision.

The federal government is believed to favour a merger of the two airlines, while Competition Bureau Commissioner Konrad von Finckenstein is expected to approve a merger if Air Canada finds a way to maintain competition.

With those hurdles disposed of, the only real opposition to a merger would come from Mr. Carty and American Airlines.

But Mr. Carty has been involved in deep discussions with Air Canada and Canadian in recent days and insiders believe he may be softening his opposition to Air Canada.

Progress has been slow because the stakes are enormous. American is, after all, Canadian's biggest shareholder with 25 per cent of the votes and 33 per cent of the equity. It gets $425-million a year in revenue from passengers fed by Canadian into its system, Mr. Kavafian said, as well as $15-million to $17-million a month in management fees.

Mr. Carty also claims the right to a payment of $1-billion if Air Canada takes over, a sum that includes repayment of its original investment of $246-million plus interest, and a $400-million penalty for breaking a contract with American's Sabre reservation system.

Mr. Milton has refused to pay $1-billion in penalties to buy an airline he says is worth just $92-million.

"That's ridiculous," he said recently.

Nevertheless, insiders believe Mr. Milton and Mr. Carty are trying to work out a compromise in the few days they have before Canadian's board must approve or renounce the Air Canada offer.

.....
========

Opening remarks by
Konrad von Finckenstein, Q.C.
Commissioner of Competition
Competition Bureau
Press conference regarding
the restructuring of Canada's airline industry
Ottawa
December 21, 1999

--------------------------------------------------------------------------------

As you know, the Competition Bureau began examining the merger between Air Canada and Canadian Airlines on November 11th, when the suspension of our Act ended.

Last week, the team of auditors I sent to Calgary to examine the financial state of Canadian Airlines reported that it was on the verge of bankruptcy. Urgent action was required.

My job then was to negotiate with Air Canada to achieve the most pro-competitive outcome possible. The Bureau had to weigh the bankruptcy and liquidation of Canadian Airlines against a merger between Air Canada and Canadian.

Air Canada's merger with Canadian modified by the Undertakings we negotiated with them is in my view better for all Canadian consumers than bankruptcy of Canadian Airlines.

The Undertakings touch all the points dealing with possible terms of restructuring outlined in my letter to Minister Collenette.

Despite our successful negotiations with Air Canada I am still quite concerned about the impact of this merger on Canadian consumers. As I outlined in my letter of October 22, 1999, the emergence of a single dominant air carrier, whether achieved through a merger or through the bankruptcy of Canadian Airlines will raise very significant competition concerns.

I identified four categories of recommendations, designed to address competition issues: possible terms of restructuring and possible changes to legislation, policy and regulation. Given my powers, I was only able to address issues in the first category. I believe the recommendations in the other three categories are just as valid today as they were then.

The full details of the Undertakings Air Canada provided to the Competition Bureau are available on our web site.

==========

Undertakings to Enhance Competition in a Restructured Airline Industry
Issue Highlights

--------------------------------------------------------------------------------

Issue #1
Facilitating Entry and/or Expansion for New or Existing Airlines
Divestiture of Canadian Regional Airlines (CRAL).
Air Canada will use its best efforts to sell CRAL on the following terms:

Within 10 days following the transaction, Air Canada and the Commissioner each choose an expert evaluator to oversee CRAL's sale. The value shall be determined within the next 30-day period. The offer shall be kept open for a period of 60 days.
Air Canada will sell CRAL at the highest offer at or above the valuation price.
During the sale period, and for a further 12 months, Air Canada will provide support services to CRAL at current levels.
The sale of Canadian Regional Airlines will foster more competition on regional routes, including those served by Air Canada.

Surrender of Slots at Toronto.
Air Canada will surrender up to 28 departure/arrival slots per day during peak hours to other Canadian carriers at Lester B. Pearson International, Canada's busiest airport. Eight slots will be surrendered between 7:00 a.m. and 9:00 a.m.; 20 slots between 3:00 p.m. and 8:00 p.m. - and of these, at least two shall be made available in each hour.
If CRAL is not sold, the number of slots to be divested rises to 42 per day.
The surrender of slots at Canada's major hub airport will encourage entry or expansion by existing and new Canadian air carriers.

Access to Aeroplan Points for Existing Carriers and New Entrants.
Air Canada is obliged to make available its frequent flier points to eligible Canadian air carriers on commercially reasonable terms.
Airlines participating in Air Canada's frequent flyer points may still participate in other reward programs.
These points shall be redeemable on all flights operated by Air Canada or any of its regional carriers.
Frequent flyer point programs are valuable marketing tools. It will now be easier for a new Canadian airlines to attract business travellers.

Interlining/Joint Fares.
Air Canada will enter into interline and joint fare agreements with any Canadian carrier, providing the carrier meets reasonable industry standards.
These combined fares will be well displayed on the computer reservation systems, and travel agents will have better access to these combined services.
By Air Canada combining its fare structure with smaller Canadian air carriers, consumers will save money. Instead of having to pay for two full fares on each segment of a trip (as is presently often the case), they will now have the option to buy one ticket at a lower fare.

Surplus Aircraft Certified for the Canadian Market.
For a period of three years Air Canada will give Canadian carriers the right of first refusal on surplus aircraft.
By attaching conditions to the sale of surplus aircraft, airplanes which have been certified to fly in Canada will be available to new and existing domestic carriers.

Issue #2
Eastern Canadian Discount Operations
Encouraging Discount Carrier Operations.
Air Canada will assign, at the option of a new discount carrier, the facilities it recently leased at Hamilton airport to other discount carriers requiring facilities at the airport at a price equal to Air Canada's cost.
In the event that a Canadian discount carrier begins to serve eastern Canada, Air Canada has agreed to refrain from establishing its own domestic airline discount service until September 30, 2001. Should no new carrier come forward, Air Canada's deadline would change to September 30, 2000.
Given the congestion at Toronto's Pearson International airport, Hamilton has emerged as an ideal alternative to a carrier wishing to gain a foothold in Ontario, and points east.

Issue #3
Conditions Imposed on a Dominant Carrier
Travel Agent Commission Overrides.
To level the playing field, Air Canada has undertaken to change its travel agent commission override program.
The program is no longer based on revenue performance or market share for domestic services.
The new program, based on Canada/USA (transborder) and international revenues, will no longer penalize travel agents for booking domestic flights of new entrants. The undertakings do not address the amount or level of commissions received by travel agents.

Surrender of Airport Facilities
Where the combined number of ticketing/check-in positions of Air Canada and Canadian exceed 60 percent of the airport total, Air Canada shall offer to sell to the relevant airport authority or Transport Canada at least 25 percent of the positions currently held by Canadian Airlines. This undertaking applies to Ottawa and Winnipeg as well as to numerous smaller airports.
At Montreal Dorval International Airport, Air Canada has agreed to sell to Aéroports de Montréal, for common use, three gates and adjoining loading bridges - as deemed acceptable by the Commissioner of the Competition Bureau.
At Lester B. Pearson International Airport, Air Canada will offer to sell to the Greater Toronto Airport Authority for common use four gates and adjoining loading bridges at Terminal 3.
Freeing up facilities at major airports will open access for new entrants. As well, it will give existing carriers more opportunities to expand their services in some of Canada's most important markets.

Chicago Formula
Currently, under the so-called 'Chicago Formula' (which covers costs of airport services, security, de-icing) carriers, regardless of size, share equally the first 20 percent of costs and split the remaining 80 percent measured by passenger volume. Air Canada has agreed to change the formula to one which allocates 100 percent of costs on a per passenger basis at selected airports.
This formula change reduces per passenger costs for these services for smaller carriers.

Majority in Interest Rights
Currently, Majority in Interest rights allow a dominant carrier to delay proposed capital expansion plans at an airport. Air Canada has agreed, under certain circumstances, not to exercise these rights at selected airports.
This ensures that new construction to add facilities will not be delayed.

News Release

Enforceable Undertakings [PDF: 707 KB]

The Competition Bureau is an independent law enforcement agency
that is responsible for merger review and the lawful conduct of business in Canada,
as defined by the Competition Act.

=====

Mr Von Finkenstein writes in his recommendation letter

"The Bureau has concluded that Canadian is facing imminent insolvency, necessitating the need for urgent action. The Bureau acknowledges that there is not likely to be a competitively preferable purchaser to Canadian in the absence of the proposed transaction."

He points out that there is not sufficient time for any more messing around because CAIL is toast, and he hates the idea of merging AC and CAIL but there's really no choice for CAIL at all. Time has run out.

[Rebel]

Balls

Excellent post it just burns my ass the contempt that some of these ex-CDN folks have shown towards AC. It gives new meaning to the saying “Never bit the hand that feeds you” These scum bags have to be fired, oh and YVR should be reduced to a domestic only base. Hey AC has done that before; that'll help break up that cosy little cess pool..

[Jaques Strappe]

Excellent post Balls.

It amazes me how people have short memories and have never worked for either airline but figure they know all.