Yycflyguy, Bearinmind isn't too far off the mark at all .. Fact. The present government has no love for unions or Canadian workers in general. Fact. If CR plunges AC into CCAA all contracts are up in the air.
Will the Shark get his way? .. Only time will tell .. but he seems very determined this time.
Maybe I am getting testy, but here it goes again.
CR can't just plunge AC into CCAA. You have to go before a bankruptcy judge and prove insolvency. This isn't the case!
At September 30, 2011, Air Canada's cash, cash equivalents and short-term investments totalled $2.179 billion which represented 19 per cent of 12-month trailing operating revenues.
In the third quarter of 2011, free cash flow of $4 million decreased $108 million from the third quarter of 2010, largely due to a decrease in net cash from operations, consistent with the reduction in third quarter EBITDAR, an increase in capital expenditures and the impact of higher pension payments. This year, Air Canada expects to make current and past service payments to its pension plans of $308 million.
In addition, for the full year 2012, Air Canada plans to increase its full year 2012 system capacity by 0 to 1.5 per cent when compared to the full year 2011.
Air Canada expects full year 2011 depreciation, amortization and impairment expense to decrease by $75 million from the full year 2010, unchanged from what was disclosed in Air Canada's news release dated August 4, 2011.
In a nutshell, 2011 was so-so. Some losses on foreign exchange but improved load factors on a small capacity increase. In 2012 they expect to increase capacity with cost reductions on depreciation and amortization. The annual report for 2011 is expected on the 10th of February. It is a balancing act between acting broke with the unions and showing investors the true health of the company. After the labour groups all sign on to long term CA expect nothing but positive news, shareholder payouts and more distribution of the wealth among the executives.
There will be no outsourcing of pilot jobs. It is a lame attempt by the company to put fear into the labour group. All it has done is further unified the pilots and pissed them off at their facade of bargaining in good faith.
This will get really testy over the next week.