There's an idiot born every minutes
***********************************************************
CTV.ca News Staff
PM tells unions and Air Canada to keep talking
CTV.ca News Staff
Toronto's Pearson International Airport open a new terminal Tuesday morning, at a time when its biggest tenant, Air Canada, is facing an uncertain future.
Last week Victor Li's Trinity Time Investments announced it was backing out of its planned $650 million investment in the airline. It cited union resistance to changing their pensions plans as the key reason.
But that wasn't the only reason. Air Canada faces cut-throat price competition from emerging discount operators, and a declining domestic market share.
No other investors have emerged, but if they do, they are likely to want to take another look at the pensions as well.
Air Canada's major unions said Sunday they have already made $1-billion worth of concessions in the restructuring process over the past year, in return for protection of the pension plan.
On Monday, however, the Air Canada Pilots Association broke ranks wit the four other main unions, and said it would begin its own search for a new equity investor.
Prime Minister Paul Martin suggested such accommodations were the way to go.
Martin said Transport Minister Tony Valeri is "actively" involved in the situation. He called on the airline, its unions and other stakeholders to work hard to find a "resolution to this."
Martin refused to speculate on whether Ottawa would deliver a rescue package, if a new investor does not come forward.
Montreal-based Air Canada has been under creditor protection since April 1, 2003. The protection was extended last week to April 15, by which time Trinity is expected to decide whether to proceed with its investment.
There are reports some of Canada's largest pension funds may step in.
The Globe and Mail reported there have been preliminary talks between the Caisse de depot et placement du Quebec, the Ontario Municipal Employees Retirement Board and the Ontario Teachers Pension Plan Board about putting in a joint bid for the airline.
Other possible saviours could include Cerberus Capital Management or that Gerry Schwartz and his Onex corporation. All declined to comment Monday on a possible investment in Air Canada.
Do not despair. Air Canada will survive..
Moderators: sky's the limit, sepia, Sulako, lilfssister, North Shore, I WAS Birddog
-
twinpratts
- Rank (9)
- Posts: 1620
- Joined: Tue Feb 17, 2004 5:38 am
- Location: The Wild Wild West.
- Contact:
If the Government gives a dollar to Air Canada this time, they should give a proportionate amount to every other domestic carrier in the country.
With that kind of funding the rest of the air carriers would be able to grow and easily squeeze Big Red out of business once and for all.
Why fund a sinking ship.
Minimize the loss by giving the money to those who would more intelligently spend it.
Better yet, let nature take it's course.
With that kind of funding the rest of the air carriers would be able to grow and easily squeeze Big Red out of business once and for all.
Why fund a sinking ship.
Minimize the loss by giving the money to those who would more intelligently spend it.
Better yet, let nature take it's course.
Pilots get higher, SCUBA Divers do it deeper!
-
Squawk Ident
- Rank 0
- Posts: 1
- Joined: Thu Feb 19, 2004 9:12 pm
I was under the impression pension fund managers were not allowed to invest in high risk ventures? A company under bankruptcy protection is definitely not where I'd want to see my pension fund.
I'd also be curious, how long can a company continue to operate under bankruptcy protection?
I'd also be curious, how long can a company continue to operate under bankruptcy protection?
Well I was told today by a pilot that things are just fine at AC and they have tons of cash on hand. Also he indicated that if a bail out is needed they will get it from the government. I have to believe him after all he is an expert at pensions, world economics, unions, civil engineering, dentistry, psychology, aerodynamics, nuclear physics, most current UN issues, land development, technical analysis, structural engineering, computer programming, automotive market analysis, fish farming, water treatment, .. phew, the list goes on but I kind of am winded. And to think all this time I just thought he just flew an airplane!
