rudder

Clearly still not cash flow positive. Government program is usually lender of last resort. https://www.theglobeandmail.com/business/article-transat-airline-government-loan/

That slogan should have been on the wall when the MAX was being designed. Instead, Boeing went in the opposite direction.

That list is 39/day plus the unspecified weekend flight reductions at YTZ. There are a lot more US flight reductions that are not listed (mostly AC Express routes).

If your ‘fortress’ hub is YYC then you know you have a problem…..

AC has more than enough qualified and competent pilots on staff to fill all current and most near term future CA vacancies. The problem is AC also has a system of pay, schedule, and equipment bidding that - in many instances - makes that left seat bid unattractive, just as it has made year 1-4 WB FO bid unattractive. So it will either be status quo or change. Grab a chair and some popcorn and just watch. No matter which was it goes it will be entertaining.

The ‘problem’ rests on 1 desk. Whoever decided that AC should maintain 4 years of (deficient) salary for FO/RP. That combined with the career limited ‘bidding rights’ has AC left where it finds itself. Nobody else does it the way AC does. Nobody. What does that tell you?

Once again, the Pivot story has absolutely nothing to do with Air Canada, Jazz, or Rouge. Please start a new thread.

“The carrier announced last month that it will boost its full-year seat capacity by 150 per cent compared to 2021 levels as COVID-19 restrictions ease in Canada and around the world and demand ramps up. But the airline noted that a full recovery to pre-pandemic levels will take longer, as this year's capacity levels represent 75 per cent of what Air Canada flew in 2019. The airline says it expects capacity to reach 95 per cent of its 2019 levels by 2024.” https://ca.finance.yahoo.com/news/air-canada-flies-100000-passengers-in-one-day-for-first-time-since-march-2020-193459190.html

Discounts of up to 50% off list price are not uncommon to large volume customers. I have no clue what the markup is on a 737NG or MAX. There is a rumour that AC got a price discount of 65% from BBD for the c-series order. That was definitely a loss-leader for BBD who were desperate for an order from a North American legacy carrier. Rumour is also that Delta got the same discount as AC in original order. I am certain that since taking over Airbus has adjusted contracted pricing to cover costs and with a profit associated.

The 737 production line survives due to: 1. fleet commonality (not a surprise considering a 57 year tenure where many large customers are ‘trapped’ with hundreds in service) 2. very deep pricing discounts from Boeing

The 737 was designed and built in the middle 1960’s. Current incarnation still retains many of those features. Not good. It is a dinosaur with fuel efficient engines (and MCAS).

Finally…… https://www.cbc.ca/news/politics/federal-government-to-drop-pre-departure-testing-1.6386763

If - big if - Porters E2 network plan unfolds as planned, this has a potential to create a potential third carrier domestic and international network in Canada. Add a tie in with one of the global alliances and you have the making of something that might be competitive. Issue will be if there are deep enough pockets to keep both carriers running during the building phase.

https://westjet.mediaroom.com/2022-03-02-WESTJET-GROUP-TO-ACQUIRE-SUNWING-VACATIONS-AND-SUNWING-AIRLINES,-DELIVERING-GREATER-VALUE-AND-MORE-SUN-DESTINATIONS-FOR-CANADIANS Combination strengthens both companies following impact of pandemic Drives growth and job creation Unlocks exciting opportunities for WestJet and Sunwing employees as part of a vibrant national airline CALGARY, AB and TORONTO, ON, March 2, 2022 /CNW/ - WestJet and Sunwing announced today that they have reached a definitive agreement under which the WestJet Group of companies will acquire Sunwing Vacations and Sunwing Airlines. The transaction will bring together two distinctly Canadian travel and tourism success stories to deliver new travel options and greater value for travellers in the rapidly expanding leisure and work-from-anywhere travel markets. The combination will enable both companies to protect and create jobs and rebuild strength in the Canadian travel industry at a critical time. Following the close of the transaction, a new tour operating business unit will be created under the WestJet Group, to include both Sunwing Vacations and WestJet Vacations Inc., and will be led by Sunwing CEO Stephen Hunter. Sunwing's current shareholders will become equity holders in the WestJet Group. Canadian travellers will have access to more competitive airfares and affordable vacation packages through the combined strength of the companies. The tour operator business will be headquartered in Toronto, with a Quebec head office in Laval and the business will continue to market the Sunwing brand alongside WestJet Vacations. The WestJet Group will maintain its head office in Calgary. The WestJet Group of companies will expand to include Sunwing Airlines. This will add increased capacity, dedicating otherwise seasonal aircraft to operate year-round in Canada, instead of Sunwing supplementing seasonal demand with imported aircraft, which translates into more jobs for Canadians. This acquisition will improve the WestJet Group's ability to offer more affordable fares by immediately expanding its low-cost footprint in Canada. "This is an exciting moment for WestJet, Sunwing and Canada's travel industry," said Alexis von Hoensbroech, CEO of WestJet. "We are bringing together two highly complementary businesses with powerhouse brands to strengthen our successful leisure business and deliver greater value to our guests." "This combination brings together Canada's two original low-cost carriers and positions us to accelerate growth in value-oriented travel, already the fastest growing segment of the airline market. It creates new opportunities for our people, our operational partners and supports the recovery from a global pandemic that has been particularly challenging for the Canadian travel and tourism industry including local airports and businesses we work closely with," added von Hoensbroech. Stephen Hunter, CEO of Sunwing, said, "We have a very promising future as part of The WestJet Group, which is one of the only airlines in the world that has not issued debt or equity during the pandemic, or accepted sector-specific government aid. The combination of their strong balance sheet and growth trajectory with Sunwing's unparalleled expertise in creating differentiated vacation packages will ensure the success of the new vacation division. My team and I are excited for the future, and we look forward to offering even more vacation destinations to Canadians at affordable prices." WestJet Group and Sunwing intend to build on their collective history of constructive labour relations and will respect all arrangements with union and employee associations, including those in place and those currently under negotiation. As a result of the resiliency created by the transaction, Sunwing expects to no longer require the pandemic-related Large Employer Emergency Financing Facility (LEEFF) Sunwing obtained from the Canadian government in early 2021, which will be fully repaid upon closing of the transaction. The combination, which remains subject to receipt of regulatory approvals, is anticipated to close late 2022.

According to the article, the WJ CEO is quoted as saying the acquisition is a large tour operator with a small operating fleet. The Sunwing Vacations brand is far more recognizable than WJ Vacations. My guess is the Sunwing branding for the tour operator (including all subsidiary storefronts) will prevail but the SW AOC will be cancelled with most lift provided on the SWOOP AOC (including transferred SW aircraft) and some mainline seat capacity used on specific routes (North America). If the article is credible, should know more later today.