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Everything posted by rudder

  1. Clearly still not cash flow positive. Government program is usually lender of last resort. https://www.theglobeandmail.com/business/article-transat-airline-government-loan/
  2. That slogan should have been on the wall when the MAX was being designed. Instead, Boeing went in the opposite direction.
  3. 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).
  4. If your ‘fortress’ hub is YYC then you know you have a problem…..
  5. 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.
  6. 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?
  7. Once again, the Pivot story has absolutely nothing to do with Air Canada, Jazz, or Rouge. Please start a new thread.
  8. “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
  9. 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.
  10. 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
  11. 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).
  12. Finally…… https://www.cbc.ca/news/politics/federal-government-to-drop-pre-departure-testing-1.6386763
  13. 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.
  14. 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.
  15. 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.
  16. Looks like a done deal. https://www.theglobeandmail.com/business/commentary/article-sunwing-deal-is-just-the-first-as-hospitality-sector-faces/ Entrepreneur Stephen Hunter took tough steps to ensure Sunwing Airlines and Sunwing Vacations survived the pandemic, cutting staff and borrowing money to ensure the business would still be around when restrictions lifted and Canadians could once again head south in the winter. However, the chief executive of family-owned Sunwing knew the bills would eventually come due. As this year began, the tour operator faced repaying $327-million in federal government loans. At the same time, vacation travel was taking off and Sunwing needed to spend money to lease aircraft and rehire pilots and flight attendants. Mr. Hunter said the conflicting pressures of paying down debt while needing to put more capital into expanding the company prompted Sunwing to revisit pre-pandemic overtures from WestJet Group and agree to sell the business his family launched in 2002. “We got to the point, in the last few years, where we couldn’t grow as much as we wanted to grow,” Mr. Hunter said in an interview. He said Sunwing was looking at options for dealing with the seasonality of its business – its fleet goes from 40 aircraft in the winter to 15 in the summer – before the pandemic burdened the company with debt. He said tapping the market reach and financial strength of WestJet and parent Onex Corp. “helps get us over this hump.” Sunwing’s financial challenges mirror what is playing out for owners of hotels, restaurants, gyms, ski hills and all sorts of other privately held businesses hit by the pandemic. If they survived the past two years, they did so by slashing costs, burning through savings and borrowing money. Now these entrepreneurs – the hospitality sector is dominated by family-owned businesses – face the challenge of rebuilding their operations while paying down debt. Sunwing’s owners are in the fortunate position of having a deep-pocketed buyer. Other companies facing the same headwinds are going out of business. Toronto-based Sky Regional Airlines Inc. shut down last March, ending a decade-long run. Mr. Hunter’s family and Sunwing minority shareholder TUI Group, a German tour operator with a 49-per-cent stake, will take WestJet shares in exchange for their business. The Hunter family and TUI will continue to own a collection of 30 hotels in the tropics. Sunwing is a private company but did disclose that it borrowed $227.1-million under a federal government loan program and drew an additional $99.6-million from a credit facility. This was expensive capital. The debt carried a 5-per-cent interest rate, and Mr. Hunter said that, as a private company, Sunwing was also forced to pay an additional 6 per cent for credit insurance. “With or without this deal, we were looking to repay that financing,” he said. “This will turn out to be a good investment for Canadian taxpayers.” WetJet is unique among Canadian airlines for turning down government funding during the pandemic, a decision that Mr. Hunter said made the Calgary-based airline a more attractive partner. WestJet and Sunwing declined comment on the value of the transaction. Toronto-based Onex acquired WestJet in 2019 for $5-billion, including assumed debt. Onex’s financial results, released last Friday, show it funded the takeover with US$980-million of equity. Of that total, US$196-million came from Onex, with the remainder coming from its institutional investor clients. Onex’s results show that, despite the pandemic, the company received US$3-million in cash distributions from WestJet over the past two years. WestJet chief executive Alexis von Hoensbroech, who took the top job less than two weeks ago after serving as CEO at Austrian Airlines, said combining the two companies will be a win for consumers and will mean more jobs in Canada, “as you combine Sunwing, a large tour operator with a small airline, with WestJet, a large airline that’s a small tour operator.” Once Sunwing joins the fold, WestJet plans to expand a tour business that was focused on Florida, the Caribbean and Mexico to destinations the Calgary-based airline already serves, such as Arizona, California, Hawaii and Europe. WestJet’s advisers on the transaction are investment bank Barclays and law firm Goodmans LLP. The takeover requires regulatory approval – a process that helped scuttle Air Canada’s proposed acquisition of Transat AT Inc. last April – and is expected to close by the end of the year.
  17. https://www.bnnbloomberg.ca/westjet-airlines-is-said-near-deal-to-acquire-sunwing-1.1731321
  18. The US look like a$$ clowns. Started under Trump. Still going on.
  19. Aggregate hiring forecast for 2022 for AA/DL/UA/SW/JB/FedEx/UPS is 8750 pilots. Some large US regional carriers are losing 200+ pilots per month.
  20. You are almost better off with a POSITIVE test result in hand. No further negative PCR test required for entry to Canada for days 10-180 following the positive test result date (effective January 15. Prior to that was 14-180 days).
  21. AC should have used the opportunity to upgrade the flight deck the same way that FedEx does on the converted B757 freighters.
  22. AC is limited by slots at YTZ. With previous demand level it made sense to use 100% for YUL as there would not be adequate slots for a decent timetable to YOW (pre-COVID). Now with COVID affected reduced demand for business travel in the eastern triangle, AC can allocate some YUL slots to YOW. AC would probably also like to increase slots. Will be interesting to see where that goes if Porter is not using all of their allocated slots.
  23. My guess is that Jazz will be a significant source of experienced E-jet pilots.
  24. More often is the case of correct V speeds set but incorrect flap setting for take-off.
  25. That method of OAL J/S registration is currently suspended. You have to call to list for a flight.
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