I was going to call it favorite quotes but that to me, implies liking them. So I'll start with my most recent anger inciting quotes. SOS is coming and CR is helping it along with quotes like these;
Mr. Rovinescu said the company’s goal remains to return to profitability, and given the legacy structure of the airline, the easiest approach would be to rip everything up and start fresh, he said.
“Sadly, life doesn’t work like that,” he said on a conference call. “So what you’re seeing is the chipping away through a transformational process of many inefficiencies that are built in and inherent in a legacy environment like this.”
He pointed to the recent collapse of Aveos, as an example, which he said would lead to cheaper maintenance costs on a long-term basis through partnerships with cheaper suppliers.(the plan all along)
We’re seeking to have dramatically improved operations. Achieving it, as you have seen through what has gone on in the first quarter, is not done without many bumps in the road,” he said.(understement of the year)
Mr. Rovinescu said he wasn’t concerned about calls for management change by certain labour groups. “Then they ought to work in a co-operative where they get to decide,” he said on the call.(Isn't this what happened to him in 2003, now he's back for revenge it seems)
How much more was AC paying for maintenance at Aveos as compared to other canadian maintenance shops? Without hard facts , some folks here are just trying to blow smoke up me arse !!
crazy_aviator wrote:How much more was AC paying for maintenance at Aveos as compared to other canadian maintenance shops? Without hard facts , some folks here are just trying to blow smoke up me arse !!
AC was probably paying around the same, just not getting much bang for the buck...Something called productivity was missing.
Hmmm, maybe a thread should be started up revealing the PRODUCTIVITY issues AC and Aveos has/ had with the legacy/union/ selfish environment that the airline is presently trying to crush !!! Truth HURTS !
crazy_aviator wrote:Hmmm, maybe a thread should be started up revealing the PRODUCTIVITY issues AC and Aveos has/ had with the legacy/union/ selfish environment that the airline is presently trying to crush !!! Truth HURTS !
All the spun off former pieces of Air Canada were given cost plus contracts and then sold. (Just means cost plus a margin)
When the CFO of AC stated yesterday that dramatic saving would occur with the liquidation of Aveos? My read is the Aveos situation was not just about productivity. The contract was expensive. When he used the word dramatic? I think very expensive in comparison to the open market.
justwork wrote:At less than $1 a share ACPA should just buy a majority and then tell CR to hit the streets.
There are better Airline Execs than CR, better at Operations and Employee relations. (think Hollis Harris) Given the recent track record at ACPA, such talents aren't likely to be found in the ACPA offices.
Sadly, it is not clear that such a person can be found within AC either.
There are lots of people at ACPA and AC that think they deserve to be CEO; those who have worked with them know better.
Fanblade wrote:When the CFO of AC stated yesterday that dramatic saving would occur with the liquidation of Aveos? My read is the Aveos situation was not just about productivity. The contract was expensive. When he used the word dramatic? I think very expensive in comparison to the open market.
The contract with Aveos was engineered by none other than our current CEO for the express purpose of increasing the money ACE could get for ACTS. A strategy that worked very well for ACE. But then Air Canada was stuck in this contract that they didn't want the day after ACTS was sold so CR engineered the failure of Aveos to get out of it. Too bad for those 2600 former Air Canada maintenance workers.
Now there is an entirely new empire at Air Canada who's sole function is to fly empty airplanes back and forth to various MRO's around the world. How much is that costing?
I know the history. My point was to take the over hang of what transpired exiting CCAA and compare it to todays environment.
No North American airline does in house heavy maintenance anymore. They all fly their aircraft to MRO's.
They do it for a reason. Because it is cheaper to do so.
Today if you compare the two. The cost of outsourcing versus the costs associated with a cost plus contract with a former entity? Of course the cost gap will be dramatic. Cost plus means just that. More cost. Not the employees fault. But of course they have to live it.
This set up was to make a lot of money for ACE investors. The fallout is that every employee that gets spun off is at risk of job loss at the end of the cost PLUS contract.
We are not immune. If CR breaks up AC into a few more pieces. For example say the EMJ operation was sold to raise cash with a lucrative CPA attached? Just like Aveos AC employees will go with it. At the end of the contract? Bye bye. The cost structure won't be able to compete with other CPA players.
Whats in it for AC? Cash up front. Lower costs down the road when you dump the old legacy cost structure. Of course he would need a buyer. Or IPO like was done with Jazz.
Read the quote below. Aveos may just be the start.
Mr. Rovinescu said the company’s goal remains to return to profitability, and given the legacy structure of the airline, the easiest approach would be to rip everything up and start fresh, he said.
“Sadly, life doesn’t work like that,” he said on a conference call. “So what you’re seeing is the chipping away through a transformational process of many inefficiencies that are built in and inherent in a legacy environment like this.”
He pointed to the recent collapse of Aveos, as an example, which he said would lead to cheaper maintenance costs on a long-term basis through partnerships with cheaper suppliers.
Looks like CR's cost transformation plan includes a slow chipping away of the legacy employee and their CBA's. Apparently it "Saddens" him he can't do it faster.
That's a very clear headed assessment Fanblade. If Rovinescu doesn't get our scope clause enabling him to continue the slow chipping away (preferable to him), he will not hesitate to pull the trigger on the "rip everything up" option...meaning bankruptcy.
There's little doubt in anybody's mind he will do it.
Employees are the enemy to that shark, not the solution.
