Porter Turns Up The Heat

[ivanhoe]

http://www.theglobeandmail.com/report-o ... le1511418/

[Inverted2]

At 49%, even if you aren't losing money, you can't be making much money.

[RIPCURRENT]

Where are the 2009 and 2010 profit sharing cheques?

[teacher]

New and expanding airlines turn a "profit" much more easily than those that are not expanding. New aircraft means massive amounts of amortization on the books, relatively junior employees are all on early timeline pay scales and most of all new companies these days don't have pension plans but have some kind of RRSP matching or the likes and therefore no legacy costs associated with retired employees. They will for sure have a lower break even factor, that’s a given.

However doesn’t the rhetoric get loudest just before the bankruptcy or the sale?

[wordstwice]

Correct me if I'm wrong but the article doesn't state that 49% is the actual loads of Porter, just the break even point for the airline. Anytime a company wants to go public they need a solid accounting sheet to get a good investment. I agree, this may be indications of an IPO but if it is just rhetoric then truth will come out when and if the company goes public.

All I took out of that article is Porter boasting about their relative ease to be profitable compared to WJA or ACA. Sounds very similar to WJA when they first started and compared themselves to ACA

One thing I do know is that most flights Porter operates on are well above 49%.......well above!!!

[Legacy]

It did mention what load factors were didn't it? Something like in the 50's.

[Joe Blow Schmo]

At 49%, even if you aren't losing money, you can't be making much money.

Well since Deluce said that 49% was their break even point I'm guessing that at 49% they would be neither losing nor making money but, in fact, breaking even!

The article didn't say what their actual load factor was.

[tsgas]

They are still is much better shape than AC is in or will be in for the predictable future.

[mbav8r]

Doesn't the title of the article seem to imply the load factor of around 50%
"Porter CEO not fazed by half-empty planes"

[hnl]

"They are still is much better shape than AC is in or will be in for the predictable future."

How can you possibly make a statement such as this? You have absolutely no information to base that on.

[CanadaEH]

They are still is much better shape than AC is in or will be in for the predictable future

Says who? Porter is not a publicly traded Company. Until their financials are available to the public anything and everything Deluce says needs to be taken with a grain of salt. They currently have a monopoly at YTZ which is preventing ANY competition from challenging Porter on the triangle. Competitive advantage, sure, but when that advantage disappears it's game on.

[dashx]

http://en.wikipedia.org/wiki/Ontario_Mu ... ent_System

How much does the "Ontario Municipal Employees Retirement System" (Borealis Infrastructure) own?

49%?

aww we all know it takes only a few seats on a Q400 to break even (oh wait i didnt count on the cappuchinos WIFI and fine wine).....

How does that line go in Fight Club?

Hi, you're gonna call off your rigorous investigation. You're gonna publically state that there is no underground terrorist group, or, these guys are gonna take your balls. Their gonna send one to the LA Times, one to the New York Times, press release style. Look, the people you are after are the people you depend on: we cook your meals, we haul your trash, we connect your calls, we drive your ambulances, we guard you while you sleep. Do not @#$! with us

I wonder who collects Porters trash.

[Valhalla]

Hey dashx, AvCanada and crack don't mix. Honestly, you are starting to sound less and less rational with each Porter bashing post.

[dashx]

Now now......

Not crack..... wine....

It happens when you leave Canada you tend to forget how things work back home.......

And then you start to imbibe and ramble on.....

Want a nice comment? Ok here it is.

My former Dash 8 instructor recently commented on what a nice flight he had from Ottawa to the Island last year with Porter. He was quite impressed.

[Jack Klumpus]

Hey dashx, out of curiosity, why the hate on porter?

Just let it out man.

[La Pura Vida]

The planes aren't half empty. They're half full...

[dashx]

Your investors have deep pockets. How's that for security?

I don't worry about Porter's bottom line. But it seems that some of you do. Perhaps it is time some of you stop worrying about Porter's bottom line.

Whether its black or red it will all be revealed in due time.

When I return to Canada I will park on the street (for free), take the ferry (free), and go for a tour of the wonderful new terminal facility.

Maybe I will have an epiphany.

And sing the praises that is Porter.

[Valhalla]

And we'll throw in a free glass of wine!

[Johnny#5]

Porter will be sold soon....thats what the deluce's do.

[dashx]

not so loud...

I want that free glass of wine first......

[jayjact]

Could you provide some more info on this? I need a good laugh. That is what people who don't know what they are talking about always say. If you actually do some research and get the facts, you will see this statement is not as accurate as you think it is.

Porter will be sold soon....thats what the deluce's do.

[jayjact]

Still on about the monopoly...hm the TPA offered slots to Jazz at the island, and to another carrier. Still waiting to here from them, they are there for the taking and when no-one wants or takes them then yes, they are offered to Porter. Jazz cried when they were booted out of the hangar facilities but in no way does Porter have a say in whether or not they can fly into the island, they made that choice themselves, for very obvious reasons. They cannot compete with the level of service Porter offers, and if they try side by side at the island it would be a disaster for Jazz at the island. I personally can't wait to see what will happen when Jazz operates out of the island, even with thier own Q4's, they just don't stack up to Porter, unless they offer flights for a buck, or do a 180 with the service they provide it will be a blood bath.
And as far as being sold or bought, I think you will be suprised to see who gets bought in the future. And if Porter does get bought up by Jazz or AC, that would be the time to get out, cuz it will go right down the toilet along with everything else they are involved in. Anyone who worked at Air Ontario before being totally owned by AC knows exactly what I am talking about.

They are still is much better shape than AC is in or will be in for the predictable future

Says who? Porter is not a publicly traded Company. Until their financials are available to the public anything and everything Deluce says needs to be taken with a grain of salt. They currently have a monopoly at YTZ which is preventing ANY competition from challenging Porter on the triangle. Competitive advantage, sure, but when that advantage disappears it's game on.

[teacher]

For frequent business flyers aeroplan points and elite status are HUGE incentives. No free glass of wine can match that. Especially if AC offers double AP points on certain routes.

[yycflyguy]

The planes aren't half empty. They're half full...

attaboy!