Transat gets $100M bailout as debt load mounts despite travel rebound

[rookiepilot]

So you’re against people using labels except when you’re doing the labelling?

You’re saying calling Liberal Voters LibTards, (and Conservative voters Con’s) —both tongue in cheek — is equivalent to our elected leadership calling everyone who doesn’t agree with them, Racist Homophobic Misogynistic purveyors of hate speech?

You’re deflecting again. You said labelling is bad then you go on to label people. You’re once again every thing you cause other people of. You’re a hypocrite.

I consider them completely different, but you’re entitled to your view.

I consider my government’s broad brushed labeling as having crossed a very serious line — all joking aside. And that goes for their supporters. Enough that i had two long conversations with my Liberal MP’s office about it.

A Lot of Canadians agree with me, and the poll numbers prove it, with that very issue front and center.

You are free to disagree.

[fish4life]

I like AT but I can’t see how they will be able to get themselves out of this debt loss they have incurred. AT has never been profitable enough to get out of a 1.78billion and growing debt obligation.
The best thing they can do is go through CCAA and restructure and get a bunch of the debt off the books so they can build back stronger, if they don’t they are just going to be hamstrung by these debt obligations and fail.

Only time will tell. New management is taking the company down a different path with a very different business plan.

It might be a different business plan but by the point they are able to start servicing that debt it will be around 10% interest so they are going to need to be making 200 million / year extra just to service the debt which 200 million a year in profit for AT would be an incredible feat

[TFTMB heavy]

I like AT but I can’t see how they will be able to get themselves out of this debt loss they have incurred. AT has never been profitable enough to get out of a 1.78billion and growing debt obligation.
The best thing they can do is go through CCAA and restructure and get a bunch of the debt off the books so they can build back stronger, if they don’t they are just going to be hamstrung by these debt obligations and fail.

Only time will tell. New management is taking the company down a different path with a very different business plan.

It might be a different business plan but by the point they are able to start servicing that debt it will be around 10% interest so they are going to need to be making 200 million / year extra just to service the debt which 200 million a year in profit for AT would be an incredible feat

It will not be easy that's for sure but it's a step in the right direction.

[TFTMB heavy]

Transat is turning into a very different company with a completely different structure, plan and business model.
It was very, very fundamentally antiquated and with a completely new C-suite it's taking a completely new direction. Comparing past benchmarks to current and forecasted performance is apples to oranges. They would have actually been profitable in Q2 2022, despite a reduced fleet and 85% bookings compared to 2019, but was hit with fuel prices of which they couldn't pass down and had to absorb because to advance bookings. So that potential alone speaks volumes about the new structure.
I hope they can persevere, and the financial institutions seem to like the new strategies. Time will tell.

Why didn’t they hedge fuel prices when oil prices went negative?? Talk about a no brainer.

Come on guys…..its Bombardier redux. We’ve all Heard this before. The permanent Quebec bailouts…..again and again and again.

Must keep them voting LibTard…..

They did hedge fuel.

A lot of your posts are the equivalent of a monkey throwing his feces.

[rookiepilot]

Transat is turning into a very different company with a completely different structure, plan and business model.
It was very, very fundamentally antiquated and with a completely new C-suite it's taking a completely new direction. Comparing past benchmarks to current and forecasted performance is apples to oranges. They would have actually been profitable in Q2 2022, despite a reduced fleet and 85% bookings compared to 2019, but was hit with fuel prices of which they couldn't pass down and had to absorb because to advance bookings. So that potential alone speaks volumes about the new structure.
I hope they can persevere, and the financial institutions seem to like the new strategies. Time will tell.

Why didn’t they hedge fuel prices when oil prices went negative?? Talk about a no brainer.

Come on guys…..its Bombardier redux. We’ve all Heard this before. The permanent Quebec bailouts…..again and again and again.

Must keep them voting LibTard…..

They did hedge fuel.

A lot of your posts are the equivalent of a monkey throwing his feces.

Would my posts improve if I supported bailouts for Quebec companies?

[TFTMB heavy]

Why didn’t they hedge fuel prices when oil prices went negative?? Talk about a no brainer.

Come on guys…..its Bombardier redux. We’ve all Heard this before. The permanent Quebec bailouts…..again and again and again.

Must keep them voting LibTard…..

They did hedge fuel.

A lot of your posts are the equivalent of a monkey throwing his feces.

Would my posts improve if I supported bailouts for Quebec companies?

You seem to be able to sling BS on pretty much any subject, so no. The way Bombardier was managed and bailed out was shameful. TS has not received a bailout, they have received loans.

[rookiepilot]

They did hedge fuel.

A lot of your posts are the equivalent of a monkey throwing his feces.

Would my posts improve if I supported bailouts for Quebec companies?

You seem to be able to sling BS on pretty much any subject, so no. The way Bombardier was managed and bailed out was shameful. TS has not received a bailout, they have received loans.

We’ll see, won’t we.

[Old fella]

It's a loan. How is this costing the taxpayers anything when the return on the investment is 5%-8%, keeps people off of EI and generates tax revenues?

As a Canadian taxpayer over and above 70 yrs, I have no difficulty with my tax contributions giving your company a loan to help through trying times for the very reasons you outlined

Cheers

How much tax are you paying?

I dunno, started paying into the tax system since ‘68 even during “ degree days”. In a previous post you told me you can do simple math, so here is your chance to do the calculation. Full disclosure, I only got my second year math in University, Calculus was way above my head.

PS. I still pay into the system from all sources of my income as a retired dude.

[DanWEC]

They are in a hedging program, but maybe they should have hired you as a consultant to the CEO. I'm sure your expertise would be extremely valued and relevant to their billion dollar business.

Why are you even on this forum? You've repeatedly disparaged us as "bus drivers of the sky" and contribute nothing aviation related whatsoever. You generally incite a derailment of a political or aggressive self-serving personal nature and tender to the overall qualitative reduction of this aviation-centric site. I'd say it's time to do everyone a favour and take a long break. Most of us just want to talk about planes, go somewhere else to bitch about the service you got from a flight attendant.

You cannot run away from a bad balance sheet. That is where TRZ finds itself. Too much debt.

It will need to refinance/replace the govt loans before the interest rate escalation clause kicks in.

Eventually CCAA will have to be at least strategically considered. However, I am guessing that under the terms of the Fed loans that they are likely first priority payee. Existing TRZ shareholders should be first casualty.

I am certain that the QC govt would be more than happy to become a part owner of TRZ.

Rudder- as usual, I completely agree with everything you're saying. I wasn't optimistic in the slightest a few months ago, and even now I'm extremely cautiously so at best. I don't pretend to know anything about the real strategies beyond what's published in the shareholders calls and employee communications. However- generally financing isn't easy to come by when you're so heavily indebted, and there is more coming from different pipelines, so there must be something in the plan and projections that the financiers feel is a good risk. I'm not sure if they'd be willing if CCAA was an imminent arrangement to return pennies on the dollar. We'll see, looking at the earnings reports it looks exceedingly difficult to reconsile, but I'm only an armchair accountant at best!

[Aviatard]

You’re saying calling Liberal Voters LibTards, (and Conservative voters Con’s) —both tongue in cheek — is equivalent to our elected leadership calling everyone who doesn’t agree with them, Racist Homophobic Misogynistic purveyors of hate speech?

You’re deflecting again. You said labelling is bad then you go on to label people. You’re once again every thing you cause other people of. You’re a hypocrite.

I consider them completely different, but you’re entitled to your view.

I consider my government’s broad brushed labeling as having crossed a very serious line — all joking aside. And that goes for their supporters. Enough that i had two long conversations with my Liberal MP’s office about it.

A Lot of Canadians agree with me, and the poll numbers prove it, with that very issue front and center.

You are free to disagree.

Labelling bad except when you do it. Everyone agrees with you. Got it.

[rookiepilot]

They are in a hedging program, but maybe they should have hired you as a consultant to the CEO. I'm sure your expertise would be extremely valued and relevant to their billion dollar business.

Why do they need a bailout — sorry — Loan! — if they’ve successfully hedged fuel costs, and with record travel demand?

Its you who brought up the spike in fuel prices as a factor.

[FL320]

Why do they need a bailout — sorry — Loan! — if they’ve successfully hedged fuel costs, and with record travel demand?

For the aircraft order!

[Bede]

Why do they need a bailout — sorry — Loan! — if they’ve successfully hedged fuel costs, and with record travel demand?

Its you who brought up the spike in fuel prices as a factor.

Because, like every airline, they sold their seats month in advance. When fuel prices went up, they had already sold the seats at an insufficient price.

BTW, when fuel prices were negative, the futures were still priced well above 0. It’s easy to look back and claim that hedging would have been smart, but on average, airlines lose money with fuel hedges.

[rudder]

Why do they need a bailout — sorry — Loan! — if they’ve successfully hedged fuel costs, and with record travel demand?

Its you who brought up the spike in fuel prices as a factor.

Because, like every airline, they sold their seats month in advance. When fuel prices went up, they had already sold the seats at an insufficient price.

BTW, when fuel prices were negative, the futures were still priced well above 0. It’s easy to look back and claim that hedging would have been smart, but on average, airlines lose money with fuel hedges.

Hedges cost cash. If you do not have surplus $$ on hand the concept is moot.

[rookiepilot]

Fair enough answers.

As a passionate supporter of Canadian aviation, I just wish these kinds of federal support packages were more widely seen across the country. Or not at all.

Perhaps I’m mistaken and smaller operators in other provinces have seen equivalent support packages relative to their size. I don’t recall seeing it. The smaller operators have really suffered during Covid, no?

All I’m saying.

[Localizer]

Fair enough answers.

As a passionate supporter of Canadian aviation, I just wish these kinds of federal support packages were more widely seen across the country. Or not at all.

Perhaps I’m mistaken and smaller operators in other provinces have seen equivalent support packages relative to their size. I don’t recall seeing it. The smaller operators have really suffered during Covid, no?

All I’m saying.

Northern operators in Canada got a $75 million dollar pot of cash to help them out. That announcement came before the big guys received anything.

It’s just not as news worthy or receive the same level of click bait as saying “(Enter big airline name) just got a government BAILOUT!!!” (Translation - said airline got a high interest government loan)

[rookiepilot]

Fair enough answers.

As a passionate supporter of Canadian aviation, I just wish these kinds of federal support packages were more widely seen across the country. Or not at all.

Perhaps I’m mistaken and smaller operators in other provinces have seen equivalent support packages relative to their size. I don’t recall seeing it. The smaller operators have really suffered during Covid, no?

All I’m saying.

Northern operators in Canada got a $75 million dollar pot of cash to help them out. That announcement came before the big guys received anything.

It’s just not as news worthy or receive the same level of click bait as saying “(Enter big airline name) just got a government BAILOUT!!!” (Translation - said airline got a high interest government loan)

Nice. Good.

[fish4life]

Ya smaller operators just got a cash infusion not even a loan even while companies like EIC were making money the whole time anyway

[rookiepilot]

Why are you even on this forum? You've repeatedly disparaged us as "bus drivers of the sky"

I apologize specifically for that characterization. To you and the community. As a CPL myself i know enough, to know its a highly complex job with a ton of responsibility for people’s lives. Its rather more complicated than driving a bus.

I wrote that, in context of the threads on the repeated horror shows happening out there in commercial travel. IMO being a captain means a greater responsibility to your passengers then just the save conduct of the flight. When things go wrong it means stepping up and making some kind of an attempt to help make it right for the pax.

When I was doing a a ton of the Hope Air flights with patients— volunteering my own time and money — I made sure each one was taken care of on the ground in Toronto, too, before I left.

They were usually sick. Sometimes a lot. Flew lots of kids. Special needs. Took patience. A few extra minutes mattered to them. I think its the same with airline pax. Not all of them are experienced travellers with unlimited time, or capacity for stressful delays or cancellations. As a Captain one has power to help bring care.

Use it.

That is what I think it means to be PIC. You are free to disagree.

And that would have been a better way to put it than nasty words. I think the pax do matter. Or should. That is all.

[newlygrounded]

It's amazing Canadians put up with being labelled like that.

Must keep them voting LibTard…..

And hey — LibTard voting TROLLS.

So you’re against people using labels except when you’re doing the labelling?

He's been off his rocker for a while, just let him scream into the void of av and twitter.