WJ vs. AC......performance

[tailgunner]

Transonic,
You do realize that WJ has cut the number of mainline 737's through lease returns and delivery deferrals , while increasing the size of Encore? It would appear that junior WJ pilots are the ones nearer the perverbial ledge....WJ leadership blamed BBD for not deferring the Dash deliveries, but I believe that was a convenient way to deflect scrutiny and continue with their fleet plans....
Cheers.

[aerobod]

Transonic,
You do realize that WJ has cut the number of mainline 737's through lease returns and delivery deferrals , while increasing the size of Encore? It would appear that junior WJ pilots are the ones nearer the perverbial ledge....WJ leadership blamed BBD for not deferring the Dash deliveries, but I believe that was a convenient way to deflect scrutiny and continue with their fleet plans....
Cheers.

No cuts in the 737 fleet have happened or are planned, here is the committed minimum 737 fleet / maximum fleet:

Year End:
2014 - 107/107
2015 - 114/114
2016 - 115/118
2017 - 115/124
2018 - 113/131
2020 - 119/149
2023 - 120/164

Latest info available on p19 of the quarterly report: http://www.westjet.com/pdf/investorMedi ... Report.pdf

[fish4life]

I might be wrong but I believe WJ pilots can opt to leave the 37 for the Q instead of getting laid off should it happen. Right now I think a junior AC guy would be better off though because they have more projected attrition then WJ does.

One interesting line did come from a Globe and Mail article on WestJet I can't seem to link here but if you check today's upgrades and downgrades it refers to this statement.
"Outside of the financial outlook, management provided disclosure surrounding a 'greatly expanded charter program,' and noted that full details will be announced within the next week or two"

Overall though should the Canadian economy get worse AC is well positioned since most of their projected growth plans involves moving traffic from the US around the world while WJ is more aimed domestically. I for one hope both companies are going to be profitable for years to come and pilots on both sides do well, it leads to a better overall situation for Canadian pilots if we have 2 healthy airlines not 1.

[Transonic]

Transonic,
....WJ leadership blamed BBD for not deferring the Dash deliveries, but I believe that was a convenient way to deflect scrutiny and continue with their fleet plans....
Cheers.

Last I read BBD plans to layoff 7000 workers. A reasonable person would assume to warrant such a massive layoff BBD must be severely cash strapped. Thus cannot afford to lose cash flow from deferring deliveries that they are not contractually obligated to do so.

http://www.huffingtonpost.ca/2016/02/17 ... 50634.html

[plhought]

...management provided disclosure surrounding a 'greatly expanded charter program,' and noted that full details will be announced within the next week or two"

Great - they already low-balled work away from the other operators around my parts, and are planning to do more. F***.

[rxl]

I might be wrong but I believe WJ pilots can opt to leave the 37 for the Q instead of getting laid off

Please tell me that this scenario would only be possible if there is a vacancy at Encore.

[fish4life]

I don't know for sure I thought that was something with the one list deal, perhaps someone at WJ or Encore could clarify ?

[flashheart]

Lateralus,

Realitychex provided a hypothetical and probable scenario that all junior AC pilots should consider. If fuel were 17 cents/litre more this quarter, the result would have been a million dollar loss every day. If that were to occur, one could reasonably assume a good number of the leased 763s and A333s would be discarded.

Air Canada knows this and its why 20 of 32 763s are on operating leases. Further, the A333 fleet will not undergo the new cabin refurbishment while being consolidated in YUL. The above makes for a clean cut, which as a pilot worries me.

Please keep up the good work on here Realitychex.

Are you guys even aware of what is going on at AC?

Training is full up, interviews everyday. I haven't even flown a plane yet and there are 200 people below me. I am not sure what I am supposed to be losing sleep over? Should I apply to WJ as a plan b?

I used to be a big fan of WJ. They came into the market and really offered a great product. Something Canada definitely needed. But this attitude, is just brutal. I mean all the best. But I am quite happy to just fly planes and go home. No Koolaid required.

[altiplano]

just frustration when reality is ignored.

Which is exactly what you are doing. Making things up that didn't happen to suit the narrative you and your colleagues have believed and wish to perpetuate.

Stig stated it well. Year over year AC is improving - they are hitting targets, turning a profit in a quarter that used to be a disaster and are more nimble than ever - and still improving.

Changes to the ACPPA, pension funding holidays, and new CPA agreements will be freeing up even more capital moving forward. A new fleet and corporate strategy are paying dividends, opening up markets and delivering results.

I hope you guys keep drinking the kill aid because it won't be the same playing field as the last 20 years. Particularly as you start overseas. A wide wide world and AC isn't your only competitor on the Atlantic... It is the most competitive market on earth with the most players.

As for junior pilots and new hires at AC it has never been a better time. Again come on back to reality! Upgrades available within the first few years on narrow bodies or direct entry as an FO on widebodies, dozens of new aircraft being delivered over the next several years... Hundreds of retirements every year starting in 2017... there is so much opportunity right now...

[rudder]

AC will hire 311 more pilots by June 2017 and AC Express carriers will hire 300+. Even a minor 'correction' would only slightly alter these forecasts.

How many pilots is WJ and Encore hiring?

[watermeth]

hiring has nothing to do with growth.
earnings and profit margin only count, numbers, ASM, CASM,..., all the things realx has been deciphering previously.
your legitimate enthusiasm from a pilot pov is not the same as a CFO, or a bean counter.
one could wonder what a 10/20% increase on the jet gallon price could produce on a 2% net profit margin, etc.
but yep, it's a good time to join nevertheless.

[Realitychex]

I might be wrong but I believe WJ pilots can opt to leave the 37 for the Q instead of getting laid off should it happen. Right now I think a junior AC guy would be better off though because they have more projected attrition then WJ does.

One interesting line did come from a Globe and Mail article on WestJet I can't seem to link here but if you check today's upgrades and downgrades it refers to this statement.
"Outside of the financial outlook, management provided disclosure surrounding a 'greatly expanded charter program,' and noted that full details will be announced within the next week or two"

Overall though should the Canadian economy get worse AC is well positioned since most of their projected growth plans involves moving traffic from the US around the world while WJ is more aimed domestically. I for one hope both companies are going to be profitable for years to come and pilots on both sides do well, it leads to a better overall situation for Canadian pilots if we have 2 healthy airlines not 1.

Did anyone else catch one of the reasons for the yield decline on page 9 of the MD&A?

"a higher proportional growth of lower-yielding international connecting traffic (sixth
freedom traffic) in support of the airline’s international expansion strategy".

Do a search for US to Europe or Asia and AC often usurps Air India as the king of low yield traffic and is chasing Norwegian and others for the lowest yield traffic. Does AC really want to get in the business of chasing Norwegian and other LCC's for that market?

It's perfect for the local church group looking for the cheapest possible flights but i doubt its the basis of long term strategy. What happens when the C$ dollar improves? Will US carriers, who are all considerably larger and dramatically more profitable quietly sit in the wings and let AC poach anything but the lowest yielding junk traffic? I doubt it.

Americans are as loyal to their loyalty plans and status as Air Canada customers are to Aeroplan.

Besides, WS can, and is doing the same, with a considerably lower cost base. For example I have friends in the US southwest who, to my surprise, are flying WJ from PHX - YYZ - YHZ - GLA. Why? It was the least expensive alternative. And both could afford to pay more, but they don't.

It's amazing what $500m a quarter in fuel savings will do to the bottom line.

[Duke p]

hiring has nothing to do with growth.
earnings and profit margin only count, numbers, ASM, CASM,..., all the things realx has been deciphering previously.
your legitimate enthusiasm from a pilot pov is not the same as a CFO, or a bean counter.
one could wonder what a 10/20% increase on the jet gallon price could produce on a 2% net profit margin, etc.
but yep, it's a good time to join nevertheless.

If you guys think Calin R hasn't factored fuel projections into his long-term strategy for Air Canada, you have no idea who he is. That guy didn't just fall off a "turnip truck" like a lot of posters on this forum appear to have. As much as I hate to say it, I would implicitly trust that man with my business, and outlook strategy any day of the week.

Hiring has "everything to do with growth"....if you're a pilot, and we're hiring pilots, growing the list. Seriously, what other "growth" is there that matters to a pilot??? As long as the "business strategy" is sound, and I have no doubt it is...... there's no worry......get a 300 name "market correction buffer" under you on that list as fast as you can. I mean seriously......as a pilot do you really care what CASM and ASM are??? If the Company is on solid footing, has the backing of the Government, has massive retirements on the horizon, and is growing the fleet, and pays you without fail two times a month......who seriously cares about the details of the "ongoing plan". I'll leave that up to the experts (of which, there are none here...except Rudder...maybe...) and continue collecting my paycheques, and logging left seat time while I'm waiting for things to "implode".........right.

We've been through far more dire scenarios over the last 15 years than fuel prices rising....and we're stronger than ever. It would be pretty naïve to assume that Air Canada's growth plan suddenly came to fruition as soon as oil dropped to $30 a barrel......and whos success is based on it remaining there. This plan was years in the making, contrary to the belief of some "expert-armchair strategic planners" who seem to have the "inside scoop" on both Companies actual financials. They just end up sounding silly.

A few questions for those "experts".........

I asked this at the beginning of this thread if ASM's and CASM is truly "EVERYTHING" why is WestJet not twice the size of Air Canada 20 years on???? Twenty years is an absolute eternity in this business, and market share is everything....everything. The relative size, and real growth plans of the two respective organizations 20 years on speaks absolute volumes, and says all that needs saying.

Why is it that Air Canada will have 100 widebodies on the property in two years if WestJet is pulverizing them in the CASM/ASM race, and has been for two decades??? Why don't you take off your "sunglasses" for a moment and address that one personally Realitychex?

Why did WJ buy four clapped-out 767's then put them on a super-competitive trans-Atlantic market??? How long will it even last? Who's idea was that??? Sounds like "experimental dabbling in an unknown market" to me. If they had a real stratigic growth plan, it likely wouldn't include "dabbling" with older maintenance hungry, relatively inefficient frames.


I mentioned in a post long ago that I heard Clive state that back in 2003....... "Air Canada is a bankrupt monopoly with a multi-billion dollar market cap that was there for our taking." I ask again....... how has that worked out exactly 20 years down the road? For the record, it was a vivid memory of his "smugness and arrogance" after he made that comment that made me start this thread in the first place....if anyone wanted to know "why".

DP.

[Realitychex]

hiring has nothing to do with growth.
earnings and profit margin only count, numbers, ASM, CASM,..., all the things realx has been deciphering previously.
your legitimate enthusiasm from a pilot pov is not the same as a CFO, or a bean counter.
one could wonder what a 10/20% increase on the jet gallon price could produce on a 2% net profit margin, etc.
but yep, it's a good time to join nevertheless.

If you guys think Calin R hasn't factored fuel projections into his long-term strategy for Air Canada, you have no idea who he is. That guy didn't just fall off a "turnip truck" like a lot of posters on this forum appear to have. As much as I hate to say it, I would implicitly trust that man with my business, and outlook strategy any day of the week.

Hiring has "everything to do with growth"....if you're a pilot, and we're hiring pilots, growing the list. Seriously, what other "growth" is there that matters to a pilot??? As long as the "business strategy" is sound, and I have no doubt it is...... there's no worry......get a 300 name "market correction buffer" under you on that list as fast as you can. I mean seriously......as a pilot do you really care what CASM and ASM are??? If the Company is on solid footing, has the backing of the Government, has massive retirements on the horizon, and is growing the fleet, and pays you without fail two times a month......who seriously cares about the details of the "ongoing plan". I'll leave that up to the experts (of which, there are none here...except Rudder...maybe...) and continue collecting my paycheques, and logging left seat time while I'm waiting for things to "implode".........right.

We've been through far more dire scenarios over the last 15 years than fuel prices rising....and we're stronger than ever. It would be pretty naïve to assume that Air Canada's growth plan suddenly came to fruition as soon as oil dropped to $30 a barrel......and whos success is based on it remaining there. This plan was years in the making, contrary to the belief of some "expert-armchair strategic planners" who seem to have the "inside scoop" on both Companies actual financials. They just end up sounding silly.

A few questions for those "experts".........

I asked this at the beginning of this thread if ASM's and CASM is truly "EVERYTHING" why is WestJet not twice the size of Air Canada 20 years on???? Twenty years is an absolute eternity in this business, and market share is everything....everything. The relative size, and real growth plans of the two respective organizations 20 years on speaks absolute volumes, and says all that needs saying.

No. Who cares about market-share if it results in the worst profit margin in the Americas? I'm sure AC has a dominant position on YVR-LAX, forcing one of the most profitable airlines in the US off the route. Even with 90%+ l/f's and a system belf of 68%, Alaska walked away from it. Do you really think AC was making money in that environment with their costs? And the moment the fares increase, Alaska will be back. It's a dumb strategy. The cost of buying that market share is never recouped.

Being profitable on a consistent basis, through all parts of the business cycle, four quarters a year is everything. And not defining "profit" by using EBITDAR, a meaningless metric that pretends depreciation, interest, rents, amortization and taxes don't really matter. Do those costs matter in your household? They better.

Being consistently profitable requires growing at a manageable rate and not throwing capacity at markets that canibalizes existing markets in order to buy labor peace with the pilot group. You tell me what happens when circumstances develop where the growth comes to a screeching halt?

Why is it that Air Canada will have 100 widebodies on the property in two years if WestJet is pulverizing them in the CASM/ASM race, and has been for two decades??? Why don't you take off your "sunglasses" for a moment and address that one personally Realitychex?

WJ is slow and methodical. They avoid risky moves. Doing so ensures their consistent profitability for 20+ years.

Why did WJ buy four clapped-out 767's then put them on a super-competitive trans-Atlantic market??? How long will it even last? Who's idea was that??? Sounds like "experimental dabbling in an unknown market" to me. If they had a real stratigic growth plan, it likely wouldn't include "dabbling" with older maintenance hungry, relatively inefficient frames.

See above. Ask any WJ'r if they were able to get a seat to Dublin or Glasgow the past few years, or about the chances of getting a seat to London this summer. The 767's are dirt cheap and with current fuel regime, have superb economics. Don't worry. You'll see an order for new iron before too long.

I mentioned in a post long ago that I heard Clive state that back in 2003....... "Air Canada is a bankrupt monopoly with a multi-billion dollar market cap that was there for our taking." I ask again....... how has that worked out exactly 20 years down the road? For the record, it was a vivid memory of his "smugness and arrogance" after he made that comment that made me start this thread in the first place....if anyone wanted to know "why".

Take 1Q 2014 fuel cost, 1Q 2014 loads, 1Q's much higher rasm and 1Q 2014's much better C$ exchange rate, over lay those key metrics on 1Q 2016 data and see what happens.

It isn't pretty.



DP.

[altiplano]

Why don't you drop the fantasy, bean?

Come back to real numbers and what's actually happening. Not what if, what if, which is bullshit.

[Duke p]

Well sunglass emoji guy........you can claim anything you like.....rationalize anything. You, nor I are running either operation. To me the "proof is in the pudding". After 20 years of "slow and methodical" WestJet let AC keep a boatload of that "up for grabs market share" Clive told us all was ripe for the picking......Why???


I can't say........but I can say from first hand experience......is that we're full nearly everywhere we fly, we're hiring 300 pilots in the next year, we have a ton of new aircraft enroute, and a variety of new and interesting destinations. As a pilot, (not an expert fleet planner, marketing director or CEO), I can say that things are very bright at AC, and I haven't lost one minutes sleep wondering if CR has things sorted.

What I also know is one hundred widebodies is definitely greater than four. Make all the money you like. How much is going back into capital purchase....aircraft purchase to be specific? Airplanes with bums in seats make money. More airplanes make more money. Problem is you have to find profitable routes to deploy those aircraft, and AC beat WJ to the punch with new destinations, many a time.

If your claim is "we're more profitable with the aircraft we have"......that's nice. We have more aircraft, more variety, more interesting routes, and they've never, ever missed paying me on time. I don't anticipate any change there. The change I do anticipate are a ton of new hires over the next few years, fast tracking it to the left seat. As a pilot, that's what matters to me......guys junior, more large aircraft to advance on. "Slow and methodical" doesn't promote rapid career progression.........looking over at that left seat knowing its still far off must be easier to swallow knowing your part of a "super healthy" company, and not just a healthy one. Thinner margins haven't affected me personally one bit....but a rapid climb up the seniority list certainly has.

Make money, be "slow and methodical" perhaps just prior to my retirement off the 777, I'll be concerned.

Another issue that is often forgotten in this "you vs. us" debate, is the impending merger. If either company is in dire straights due to the other, don't think for a second that another Canadian/AC merger will not be forced on us by the Government. They want taxpayers, not people standing in the unemployment line......if necessary, it WILL happen. We at AC are better at mergers than you guys.....we've got more experience.

It would take nothing to fold the WJ 737 fleet in with our own..........trust me, you don't want us gobbling you up, so you'd better hope for two healthy carriers in this country.

At the end of it all we're just pilots....not decision makers (thank goodness....)......good luck to you, I'm sure your career will be as long and rewarding as mine.

DP.

[brooks]

Well sunglass emoji guy........you can claim anything you like.....rationalize anything. You, nor I are running either operation. To me the "proof is in the pudding". After 20 years of "slow and methodical" WestJet let AC keep a boatload of that "up for grabs market share" Clive told us all was ripe for the picking......Why???


I can't say........but I can say from first hand experience......is that we're full nearly everywhere we fly, we're hiring 300 pilots in the next year, we have a ton of new aircraft enroute, and a variety of new and interesting destinations. As a pilot, (not an expert fleet planner, marketing director or CEO), I can say that things are very bright at AC, and I haven't lost one minutes sleep wondering if CR has things sorted.

What I also know is one hundred widebodies is definitely greater than four. Make all the money you like. How much is going back into capital purchase....aircraft purchase to be specific? Airplanes with bums in seats make money. More airplanes make more money. Problem is you have to find profitable routes to deploy those aircraft, and AC beat WJ to the punch with new destinations, many a time.

If your claim is "we're more profitable with the aircraft we have"......that's nice. We have more aircraft, more variety, more interesting routes, and they've never, ever missed paying me on time. I don't anticipate any change there. The change I do anticipate are a ton of new hires over the next few years, fast tracking it to the left seat. As a pilot, that's what matters to me......guys junior, more large aircraft to advance on. "Slow and methodical" doesn't promote rapid career progression.........looking over at that left seat knowing its still far off must be easier to swallow knowing your part of a "super healthy" company, and not just a healthy one. Thinner margins haven't affected me personally one bit....but a rapid climb up the seniority list certainly has.

Make money, be "slow and methodical" perhaps just prior to my retirement off the 777, I'll be concerned.

Another issue that is often forgotten in this "you vs. us" debate, is the impending merger. If either company is in dire straights due to the other, don't think for a second that another Canadian/AC merger will not be forced on us by the Government. They want taxpayers, not people standing in the unemployment line......if necessary, it WILL happen. We at AC are better at mergers than you guys.....we've got more experience.

It would take nothing to fold the WJ 737 fleet in with our own..........trust me, you don't want us gobbling you up, so you'd better hope for two healthy carriers in this country.

At the end of it all we're just pilots....not decision makers (thank goodness....)......good luck to you, I'm sure your career will be as long and rewarding as mine.

DP.

A tad naive. What makes you think that with a globalized economy some bigger foreign carrier doesn't step in and grabs a minority stake in WJ? Much easier to do given the lack of a union and all. Think about the bigger picture and not just your pretty toothpaste coloured 777 here. AC is still going to be in a ton of debt for the foreseeable future.

Be careful not to eat your own words because 4 widebodies can quickly turn into 50 and then you might have a real threat at AC.

Enjoy the cheap fuel while it lasts.

[Realitychex]

Well sunglass emoji guy........you can claim anything you like.....rationalize anything. You, nor I are running either operation. To me the "proof is in the pudding". After 20 years of "slow and methodical" WestJet let AC keep a boatload of that "up for grabs market share" Clive told us all was ripe for the picking......Why???


I can't say........but I can say from first hand experience......is that we're full nearly everywhere we fly, we're hiring 300 pilots in the next year, we have a ton of new aircraft enroute, and a variety of new and interesting destinations. As a pilot, (not an expert fleet planner, marketing director or CEO), I can say that things are very bright at AC, and I haven't lost one minutes sleep wondering if CR has things sorted.

What I also know is one hundred widebodies is definitely greater than four. Make all the money you like. How much is going back into capital purchase....aircraft purchase to be specific? Airplanes with bums in seats make money. More airplanes make more money. Problem is you have to find profitable routes to deploy those aircraft, and AC beat WJ to the punch with new destinations, many a time.

If your claim is "we're more profitable with the aircraft we have"......that's nice. We have more aircraft, more variety, more interesting routes, and they've never, ever missed paying me on time. I don't anticipate any change there. The change I do anticipate are a ton of new hires over the next few years, fast tracking it to the left seat. As a pilot, that's what matters to me......guys junior, more large aircraft to advance on. "Slow and methodical" doesn't promote rapid career progression.........looking over at that left seat knowing its still far off must be easier to swallow knowing your part of a "super healthy" company, and not just a healthy one. Thinner margins haven't affected me personally one bit....but a rapid climb up the seniority list certainly has.

Make money, be "slow and methodical" perhaps just prior to my retirement off the 777, I'll be concerned.

Another issue that is often forgotten in this "you vs. us" debate, is the impending merger. If either company is in dire straights due to the other, don't think for a second that another Canadian/AC merger will not be forced on us by the Government. They want taxpayers, not people standing in the unemployment line......if necessary, it WILL happen. We at AC are better at mergers than you guys.....we've got more experience.

It would take nothing to fold the WJ 737 fleet in with our own..........trust me, you don't want us gobbling you up, so you'd better hope for two healthy carriers in this country.

At the end of it all we're just pilots....not decision makers (thank goodness....)......good luck to you, I'm sure your career will be as long and rewarding as mine.

DP.

Did you listen to ANYTHING Ed Bastian had to say in his in-depth Bloomberg interview? You might want to.

At 15.5%, Delta's margins with interest incorporated above the line, and not below the line, were 10X higher than AC's at 1.56% last quarter. I'd pay far more attention to what they have to say about the lay of the land than anyone else.

You don't like interest expense being included as an operating expense? Do you think the interest expense portion of your mortgage should be excluded as part of the monthly expense of running your household? What do you suppose would happen to the roof over your head if you decided not to pay the banks interest on your mortgage for any significant amount of time?

I'm not suggesting interest is not being paid, but it's dangerous thinking to be calculating "profit" or "margins" and not include a $102m line item that, if not paid, will result in airplanes, and the associated revenues, disappearing into the night.

I wouldn't worry too much about having to merge with WS anytime soon.

WJ's cash stockpile represents 139 days of operating expenses. AC's represents 83 days.

43% of WJ's cash is unearned revenue, (advance ticket sales). 78.3% of AC's cash is unearned revenue, (advance ticket sales). To be fair, that is a vast improvement on the situation not too long ago when 100% of the operation was funded off advance ticket sales, the same situation as jetsGo.

Have you ever thought about why interest makes up just .5% of WJ's revenue stream and 3.1% of AC's revenue stream?

How about the implications of all of the above when the cycle turns, which, if one pays attention to what's going on, is very likely the case.

I'd far rather be entering a down turn with double digit profit margins, debt under control and expansion in a measured and controlled pace, very little of which has any chance of diluting or canibalizing existing revenues. Wouldn't you? Seems like a prudent method of managing for the long haul, eh?

It wasn't that long ago that people said WJ would never make it past 10 aircraft. They did. One aircraft at a time, and profitable every step of the way, whether oil was at $9 a bbl or $130 a bbl.

What part of WJ's history suggests it would be their style to order 30 WB aircraft and start all kinds of new routes holus bolus?

And lest anyone think London is going to be WJ's Waterloo with empty airplanes criss-crossing the Atlantic, as of late Sunday evening, try and buy a seat on WJ's n/s YYZ-LGW flight tomorrow at any price. Sure, selling out can be considered evidence of leaving a little too much on the table, but perhaps the $550 saving compared to flights to LHR were just too much a saving to be ignored by the last couple of dozen passengers.

It'll be fascinating to see how long that price differential lasts in the marketplace. I'm surprised it's still there at all. It's probably a good thing too. Advance fares to London are considerably lower than the summer of 2015 so a further collapse of walk up fares, (as has been the case of YYZ-BOS where same day, last minute walk up fares have collapsed from $1,692 or more prior to WJ entering the market to $622 tomorrow, a revenue decline of close to $1,100 per r/t high yield passenger, the bread and butter of that route), probably isn't going to help route profitability much.

But don't worry. All that revenue will be recaptured by flying all those high yield Rouge "pax" from YUL to PVR next winter!

[atphat]

You're obsessed. Kind of like a scorned ex or something.

[brooks]

WJ produced a profit of $118.1m after paying the banks their $5.1m in interest in the quarter. AC produced a profit of $52m after paying the banks their $102m in interest.

The differnce is AC needed $3.34b in revenues to generate that $52m of pre tax profit and WJ produced over 2x AC's profit or $118.1 with just $1.03b in revenues.

WJ paid taxes last quarter. AC hasn't paid any taxes for about 3 years.
Not having to pay taxes does wonders to pump up EPS numbers.