Jazz Aircraft

[linebacker35]

I was just curious what is the deal with the Jazz aircraft now that they are seperate from AC. Expressjet now seperate from Continental does not own the rights to their aircraft, they remain Continental property that is being "borrowed" by expressjet. Is it the same situation at AC and Jazz?
This makes a big differance as if the aircraft are under jazz ownership Jazz will be able to hold AC hostage yet if AC owns them still they would be able to play differant regionals against each other to obtain the best deal like the US airlines do

[Martin Tamme]

AC owns the airplanes, but they can't play one regional against another because of the ACPA Scope clauses. In accordance with the ACPA Collective Agreement, only Jazz can operate flights on behalf of AC (for Tier 2 carriers). If the AC wants to play that game, it would first have to have ACPA's permission.

[yycflyguy]

... or AC could just ignore the scope clause and pit one regional versus another, ACPA would grieve it, and after years before a mediator have the grievance decided that it was a business decision and they could do anything they want! Yes, the glass is half empty

[Lakelad]

AC owns the airplanes

They own some of the jets, none of the props.

[intheknow]

AC leases all the a/c to jazz. Jazz used to own the props but they don't anymore... sometimes we don't see the big picture.

[Lakelad]

AC leases all the a/c to jazz. Jazz used to own the props but they don't anymore... sometimes we don't see the big picture.

Breakdown of Jazz owned vs leased aircraft per 2007 Annual Report (p 43):

[intheknow]

OK, I take that back... I guess that management in my last groundschool was stringing me along.
oops

[Brick Head]

I was just curious what is the deal with the Jazz aircraft now that they are seperate from AC. Expressjet now seperate from Continental does not own the rights to their aircraft, they remain Continental property that is being "borrowed" by expressjet. Is it the same situation at AC and Jazz?
This makes a big differance as if the aircraft are under jazz ownership Jazz will be able to hold AC hostage yet if AC owns them still they would be able to play differant regionals against each other to obtain the best deal like the US airlines do

The CPA provides that upon the expiry or termination of the CPA, other than termination as a result of a default by Jazz or Air Canada, all leases between Jazz and Air Canada (or any affiliate of Air Canada) in respect of Covered Aircraft and spare engines shall automatically be terminated and Air Canada (or any affiliate of Air Canada) shall have the right to repossess the Covered Aircraft and the spare engines. There can be no assurance that Jazz will be able to find replacement aircraft. In the event that Jazz is able to find replacement aircraft, there can be no assurance that Jazz will be able to do so on terms as favorable as the terms of its current leases with Air Canada (or any affiliate of Air Canada). Unless Jazz is able to find replacement aircraft on reasonable terms, Jazz’s ability to offer scheduled and charter flights to any carrier would be materially adversely affected, which would have a material adverse effect on Jazz’s business, results from operations and financial condition.

[dream chaser]

You may be right to say that AC could repossess the aircraft, but I would think they would more likely waive that option and the aircraft would be available to be leased by Jazz or any other company. I mean what would AC do with RJs and Dashs.

[Brick Head]

You may be right to say that AC could repossess the aircraft, but I would think they would more likely waive that option and the aircraft would be available to be leased by Jazz or any other company. I mean what would AC do with RJs and Dashs.

Dream chaser,

AC has no intention of flying RJ's or -8's. The purpose of this section of the CPA is ease in portability. It allows AC to move aircraft to whomever has the CPA easily and efficiently. Doing so increases competition at renewal time.

Jazz appears to have purchased their -8's. Anyone know when this happened?

[Brick Head]

AC owns the airplanes, but they can't play one regional against another because of the ACPA Scope clauses. In accordance with the ACPA Collective Agreement, only Jazz can operate flights on behalf of AC (for Tier 2 carriers). If the AC wants to play that game, it would first have to have ACPA's permission.

Yup,

How many collective agreement renewals will take place before 2015? What is the likely hood ACPA will refuse to change that clause? What is the likely hood ACPA will trade it for something?

One of the purposes of the restructured company, from the outset, has been to make as many employees as possible compete for their work. It drives labor costs down.

We,re next. The tool? Star Alliance and code share.

[. .]

When are the results from the existing code share grievance expected to finish arbitration. If it sides in ACPA's favour it could knock one massive thing off the list of wants for 2009.