rudder

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Everything posted by rudder

  1. https://www.reuters.com/article/idUSKBN2860ZT Air Canada has offered concessions related to its proposed acquisition of Canadian tour operator Transat to address EU antitrust concerns, a European Commission filing showed on Thursday. The Commission, which oversees competition policy in the 27-nation European Union, said the commitments had been submitted on Nov. 25. As a result it, it has extended the deadline for its decision by three weeks to Jan. 29.
  2. The legal battle at Toronto’s island airport is heating up as the terminal’s owner and operator has filed a countersuit against Porter Airlines Inc., alleging the carrier has wrongfully refused to pay fees during its pandemic-related shutdown. The owner of the passenger terminal at Billy Bishop Toronto City Airport, Nieuport Aviation Infrastructures Partners LP, said in a lawsuit filed in the Ontario Superior Court of Justice that Porter has withheld $38.6-million in charges since March 1, in violation of a contract. Nieuport, controlled by New York-based J.P. Morgan Asset Management
  3. If that negotiation was going well, the matter would not be in court. No different than what is going on with HBC.
  4. Pipe dream. Porter has bigger and more immediate issues to deal with, like staying in business. You cannot just ignore bills, or contractual obligations. Porter will take Fed money and pay the rent. And there will be no jets at YTZ.
  5. Priceless. PAH sells Terminal Corp to a consortium for hundreds of million$ (rumour is $750MM) and uses cash proceeds to retire all debt associated with Q400 fleet. It is that retirement of debt that has allowed Porter Airlines to remain closed and still avoid CCAA. The buyers of Terminal Corp justified the massive acquisition expense against a guaranteed revenue stream via long term lease with PAH/Porter Airlines. Now Porter has ceased making lease payments (no surprise since Porter has zero revenues). And Nieuport is looking to put liens on Porter assets. You cannot make
  6. Who would want to sign up for the next 4 years? It is going to be a sh§t show. He just turned 65. Go enjoy a well earned (and lucrative) retirement.
  7. Seems the game of ping pong has begun..... Air Canada’s chief executive officer said the airline is open to providing refunds for cancelled flights in exchange for government aid, adding that the company has no interest in offering Ottawa an equity stake. President and CEO Calin Rovinescu said the airline would have no qualms about giving customers holding unused tickets their money back, so long as the terms for such a deal are “appropriate and reasonable.” Air Canada has so far paid back more than $1.2 billion in refundable fares amid travel restrictions throughout the
  8. Sounds like Rocketman is bringing quite the shopping list to the table. AC has already cancelled orders for a dozen A220’s (but has options to restore those positions if desired). Are those fins built in Canada or Alabama? Not sure any other carrier has any outstanding orders for “Canadian built” airframes (CHR will consummate deliveries on 5 already built CRJ900’s in Q4 2020). AC would have to take $2.3B in low interest loans just to cover prepaid fare refund liability. Would have to think about whether that swap would affect the balance sheet as both sit on the liability column, al
  9. Combination of positive Pfizer announcement (the start back towards normalization) and a potential new competitor ? Even in the US, passenger airline stocks were way up today and cargo operators were down. Of greater interest is the price run up in CJT last week. Gave it all back today, and then some. Perhaps AJ will comment?
  10. From the AC press release: “Our nimble Cargo team has pivoted to dedicated all-cargo flights during the pandemic and Cargo will become an increasingly important segment of our business going forward. Watch for further announcements shortly......
  11. Yup. That’s the reason Garneau waited until weekend to make announcement. That combined with AC’s actions to adjust CapEx (2021 was unsustainable at current cash burn rates) is convincing investors that CCAA is less and less likely.
  12. Yup. That’s why anybody would have been crazy to book any Xmas travel in Porter.
  13. Fairfax holds $200MM in debentures issued by CHR. Fairfax holds exercisable warrants for 24,242,424 shares in CHR which would represent a 16.5% stake. Fairfax has the option to convert the debentures in order to fund the warrants. However, the warrant price is $8.25 per share. Considering the market cap for CHR is $500MM (including the 31% increase in trading price yesterday), I am not sure they converting the debentures to equity is a value proposition. Having said that, Fairfax may in fact be looking at simply taking up CHR shares on a gross basis with CHR BOD support.
  14. Perhaps not. And perhaps that is why the CHR news release references “a number of significant conditions” attached to the unsolicited offer. A non-AC offer would have several significant hurdles.
  15. Like I said, AC can void CPA based on change of control. Jazz is not a good fit for WJ. It’s fleet and route structure entirely constructed for lower gauge city pairs and hub feed to AC hubs. AC is the logical potential acquirer. Any other party would have to know that the CPA revenue stream could be terminated if change of control not approved by AC.
  16. With the change of control provisions of the CHR/AC CPA there can be only one viable potential bidder. AC already owns 10% of CHR. It is likely AC.
  17. https://chorusaviation.com/chorus-aviation-issues-statement-in-response-to-recent-share-price-appreciation/
  18. No, there aren’t. Just ask Rocketman Garneau. Where is Chris Hadfield? There is an astronaut I can trust.
  19. https://onemileatatime.com/american-airlines-retiring-a330/?utm_source=BoardingArea&utm_medium=BoardingArea Not sure if AC is considering adding to A330 fleet beyond the TS fleet. This might be a source.
  20. 50% capacity for summer 2022. 80% capacity for summer 2023. 100%(?) for summer 2024. That is 5 years to get back to summer 2019 capacity. Airlines should plan accordingly.
  21. Extending MOA #1 was not an option. That was a knee jerk response to the immediate dramatic demand destruction of COVID. The alternative to MOA #2 was for AC to run a full reduction bid based on expected summer 2021 flying levels rather than expected summer 2022 flying levels. Huge expense. Huge disruption. Likely over 12 months to implement training plan just to reverse it for 2022. AC is a big airline with multiple equipment types. Just look at how UA/DL/AA are managing pilot surpluses and that is a more representative comparison. AC still has the cheapest WB FO’s on the planet co
  22. https://www.newswire.ca/news-releases/calin-rovinescu-to-retire-as-president-and-ceo-of-air-canada-early-next-year-811456029.html He recently turned 65 so I am not surprised. Originally, the closing of the TRZ deal was going to be his swan song. So, timing has not changed. Also not surprised that Rousseau will succeed him. That has been in the cards for a while. AC is entering a very challenging few years. CCAA still not out of the question. Whoever is running the ship is facing several years of significant challenges, not the least of which is determining whether YOW wants
  23. https://www.routesonline.com/news/38/airlineroute/294301/air-canada-nov-2020-us-operations-as-of-09oct20/?highlight=Air canada https://www.routesonline.com/news/38/airlineroute/294300/air-canada-nov-2020-international-operations-as-of-09oct20/?highlight=Air canada
  24. dagger put up a good post about where we are with (potential) government aid for the industry. Just providing an update of the cash burn at Canada’s largest (pre-merger) airline.