Jump to content

MD2

Members
  • Posts

    856
  • Joined

  • Last visited

  • Days Won

    10

Everything posted by MD2

  1. https://biv.com/article/2021/07/lawsuit-week-shareholder-takes-aim-airlines-expansion-plan “A shareholder in Flair Airlines Ltd. is taking the low-cost carrier to court, claiming it’s wrongfully withholding key information about a significant expansion of the company’s fleet of aircraft announced in the midst of the COVID-19 pandemic. Prescott Strategic Investments LP by its general partner Prescott Strategic Investments Ltd. filed a petition in BC Supreme Court on June 18, naming Flair and Florida-based 777 Partners LLC, a “significant creditor” of the aviation firm, as respondents. Prescott, run by Canadian aviation industry veterans Jim Scott and Jerry Presley, claims in the court filing that the dispute was spurred by Flair’s management deciding to “aggressively expand its operations during a global pandemic” by signing leases on 13 new Boeing 737-8 airplanes with a subsidiary controlled by 777 Partners, also a Flair shareholder.” The details are ordered sealed, but it was also revealed at the time that Flair owed 777 about 140 millions at 18% interest…
  2. Oh make no mistakes, the opposition to Flair’s advantage is from all Canadian carriers, especially Air Canada, the biggest member. And the CTA has already made the preliminary ruling. A little research reveals that Flair seems to have had a falling out with its (only?) Canadian investor who is suing it now, and as a result it has delved deeper into its relationship with 777. It basically is the only major stakeholder in the company, at the moment provides most of its aircraft, and clearly controls it. Flair is asking for 18 months hoping to find a replacing investor. Jetlines searched for many years. They may never come! The argument may be coming from its competitors, but it doesn’t make it less true. Flair’s own actions and statements seem to indicate that it has knowingly been in breach of foreign ownership and controls laws.
  3. This part in the Globe article about sums it up: ”….Other than its deliberate violation of the law, there is simply nothing unique about Flair,” WestJet said. “If Flair’s licence were suspended or cancelled, other Canadian airlines – that respect the legislative requirements for holding domestic licences – will fill the gap and provide comparable competition, local service and jobs.”
  4. One would think, at some point. Why wouldn’t they, as a way of “unlocking” the value of their investment.
  5. If I were ferrying my company’s first airplane into the country, I’d know there’d be historical pictures to be taken and I’d want to be in my Sunday’s best!
  6. CTA has launched a formal probe into Flair’s foreign ownership and control. https://www.theglobeandmail.com/business/article-federal-regulator-launches-formal-probe-into-flair-airlines-compliance/ Level of investment and control between Lynx Air and Indigo, as well Jetlines and SmartLynx would be interesting.
  7. Private shares. Which will be converted to common shares at the next IPO.
  8. Sunwing’s seasonality will cease as it will use Canadian registered aircraft in the winter and the summer EU flying will stop since it was based on reciprocity. Considering Sunwing’s winter fleet is around 45, I will look for language in their next contract to expand Swoop well beyond 30, considering it will have 16 this summer. It won’t be surprising to see language for WD as well. it is a smart move that they have included Sunwing’s loan will be paid in full upon completion, more incentive for cash strapped feds to expedite the process. it seems a good match.
  9. Porter would have bought the C series aircraft when it was still fully Canadian and showcased its urban capabilities years ago had it not been for the unilateral decision of liberals to end a transparent and democratic process that was underway. That would have likely made a substantial difference for the program and sustained it as a Canadian enterprise. In this new environment, it makes more economical sense to go with the E series, especially since they will not be flying from city airport. If a new federal government is supportive of the original Porter plans, they may be resurrected.
  10. Jazz, AC, and above all ALPA! ?
  11. In spite of the usual whitewash from some AC crowd, this is a legitimate concern about how the federal government is going to balance regulating the industry against making a profit on its investment. It is mind boggling that the liberals not only have failed Canadians on every level in handling the pandemic, but they also stubbornly refuse to support the industry as a whole like other developed countries. This stems from their socialist agenda to appear different from other “capitalist” (read Trump administration) countries and their usual pursuit of favouritism. Public or private, an airline is affected the same from the government’s inane and arbitrary interference and as such must be compensated by the entity which restricts it from conducting business. Some seem to think that it is ok for private companies to continually pay for the government’s mismanagement on the account that they may appear “rich” to them! What a communist perspective!
  12. Due to lack of action and support from Justin and his liberal government, Canadian carriers have already lost 24% of international market share to foreign carriers and will likely lose more since U.S market has rebounded to nearly 50% of 2019 capacity and EU to over 35% while Canada languishes below 10%.
  13. In other words people, pardon me “peoplekind” would vote the same way while expecting different results?!! The more pertinent question is would Canadians want to have the liberals continue in office in light of their performance during the pandemic, more specifically managing the economy, vaccine acquisition, specific aid for industries most affected such as aviation? It is quite peculiar that instead of an industry-wide aid package, the federal government has chosen an airline specific aid which makes it one of the largest shareholders in its previous crown corporation again! That makes fair regulation of the industry even more challenging.
  14. Curious why you think that, even if somehow there is another miracle for Justin!
  15. And often a certain group portrays consequences of its actions not as such, rather as discrimination, which given the realities of the world is quite ironic! WestJet was right on the money to remove him and more so to ban him just as they forewarned the travelling public, let alone people on employee passes who are supposed to be very discrete and helpful to the crew! The more he goes on the more embarrassing for him and the poor soul that gave him the pass! Now all of a sudden he is "stranded"!! Pay for a ticket like everyone else and get on with life Mr. cheap!
  16. I tend to agree, with much contradiction and little inspiration, don't exactly see the point of this interview!
  17. True, some consolation I suppose, but disappointing that it's not presented to the world by a Canadian company that originally designed this game-changing aircraft.
  18. What (some) people don't seem to understand is that whatever portion labour costs represents, it is the only one that airlines can control. Such mistrust of management seems to linger on at WestJet among some which will be to their own detriment. Clearly this is not something specific to WestJet and airlines around the world have slashed their capacity and work hours along with it to respond to the falling demands. In this environment it would be reasonable to assume that WestJet pilots too agree to reduce their hours in order to keep more of their colleagues at work and also reduce the cost to their airline so it has a stronger position on the other side of the recovery. Airlines with more of their cash reserved and more of their workforce retained will be able to grow quickly during the recovery. WestJet has done well while it was growing and making money, this is a real test for them as how they manage this crisis when they clearly be losing millions of dollars every day. For instance Canada 3000 was great in managing itself during growth but didn't have much experience as how to operate in an environment of losing money in 2001. That trophy seems to belong to Canadian and Air Canada!
  19. Indeed, another Avro Arrow it seems. All that effort, ingenuity, and time to benefit Airbus, not Bombardier, its workers, shareholders, and Canada in general for all its support.
  20. Why would THIS in particular be more interesting than the multitude of flights that Air Canada has been doing all along, including to Europe, the epicenter of the pandemic! Although it is good that government agencies have finally understood scientific data or perhaps were simply buying time before to purchase masks from China, quite ironic!
  21. I doubt the downturn would affect their "senior" captains who are on the B787 and likely left alone if they hope to reignite their aspirations any time soon. This will likely trigger major reshuffling of crew bases and positions which will be expensive for the company and messy for the pilots. My guess is that all posturing will come to naught and the pilot group will have no choice but to follow the example of other airlines for reduced hours. The company makes some savings in that and other staff too who are put on CEWS. Of course WestJet group will need all the help they can get on the other side as they will be in for some tough competition from a known player who no doubt is securing very agreeable terms and will sprint into action just in time. The release of the new Max may just coincide with the initial stages of a recovery. Talk about good timing!
  22. The Canadian made C series of aircraft were always known to be a game changer by those who could perceive potential, just like the Q400, welcome world!
  23. That arrangement is interesting in that it had different motivations, benefits and pitfalls for the three parties involved. Encore pilots were clearly motivated to advance their career prospects by potentially leap frogging other direct hires for upgrades at WestJet. Their pitfall is their suppressed bargaining powers for improving work conditions. As well the downward pressure on their members now from the displaced pilots. WJ pilots were enticed by a bonus or perhaps some genuinely trying to help the company. They may have also thought it discourages the company to lay off large numbers, although that remains to be seen. The pitfall for them is a seniority system out of step with experience of its current members which may prove demoralizing for some. WJ management was largely motivated to address its recruitment challenges at the regional level. Its pitfall is now the challenge of shuffling during a downturn. It will be interesting to see how this will play out and what lessons it brings.
  24. No I don't, it just coincided with it, and to that coincidence is what I was referring. And there are other similarities which I hope do not come to pass for WestJet. And to be fair, at the end ALPA was more cooperative than other unions. I have no reason to believe that the demise of Canada 3000 was any different as analyzed by the Competition Bureau.
  25. If the deal was in stock exchange, it may be unaffected, but if it was in cash, it will likely be renegotiated. It would also depend on their motive, an attempt to eliminate competition or an attempt to replace Rouge would require different strategies now. At any rate, it is unlikely the deal would close as envisioned before.
×
×
  • Create New...