dagger

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  1. I'm not aware of any restrictions unless AC has agreements with particular local or provincial governments to provide a given service. I suspect I would have heard about such agreements by now if there were any.
  2. I think that's reasonable. I'm a supporter of the industry, but I don't think throwing massive subsidies at airlines is the way to go. The government could drop the excise tax on jet fuel, but aside from that, the chips should probably be allowed to fall where they do... even if that means higher fares, no social distancing in aircraft, routes suspended, etc. I just don't want to hear any complaints about airline prices or practices right now.
  3. https://www.newswire.ca/news-releases/air-canada-discontinues-service-on-30-domestic-regional-routes-and-closes-eight-stations-in-canada-826282841.html This is going to hurt - I expect a lot of communities will be voicing their concerns. Air Canada Discontinues Service on 30 Domestic Regional Routes and Closes Eight Stations in Canada Jun 30, 2020, 11:00 ET Regional flying rationalized due to COVID-19 and government travel restrictions, part of airline's Cost Reduction Program to reduce cash burn MONTREAL, June 30, 2020  /CNW Telbec/ - Air Canada said today that it is indefinitely suspending service on 30 domestic regional routes and closing eight stations at regional airports in Canada. These structural changes to Air Canada's domestic regional network are being made as a result of continuing weak demand for both business and leisure travel due to COVID-19 and provincial and federal government-imposed travel restrictions and border closures, which are diminishing prospects for a near-to-mid-term recovery. As the company has previously reported, Air Canada expects the industry's recovery will take a minimum of three years. As a consequence, other changes to its network and schedule, as well as further service suspensions, will be considered over the coming weeks as the airline takes steps to decisively reduce its overall cost structure and cash burn rate. A full list of route suspensions and station closures is below. As a result of COVID-19, Air Canada reported a net loss of $1.05 billion in the first quarter of 2020, including a net cash-burn in March of $688 million. The carrier has undertaken a range of structural changes including significant cost savings and liquidity measures, of which today's announced service suspensions form part. Other measures include: A workforce reduction of approximately 20,000 employees, representing more than 50 per cent of its staff, achieved through layoffs, severances, early retirements and special leaves; A company-wide Cost Reduction and Capital Deferral Program, that has to date identified around $1.1 billion in savings; A reduction of its system-wide capacity by approximately 85 per cent in the second quarter compared to last year's second quarter and an expected third quarter capacity reduction of at least 75% from the third quarter of 2019; The permanent removal of 79 aircraft from its mainline and Rouge fleets; And raising approximatively $5.5 billion in liquidity since March 13, 2020, through a series of debt, aircraft and equity financings. Further initiatives are being considered. Route Suspensions The following routes will be suspended indefinitely as per applicable regulatory notice requirements. Affected customers will be contacted by Air Canada and offered options, including alternative routings where available. Maritimes/Newfoundland and Labrador: Deer Lake-Goose Bay; Deer Lake-St. John's; Fredericton-Halifax; Fredericton-Ottawa; Moncton-Halifax; Saint John-Halifax; Charlottetown-Halifax; Moncton-Ottawa; Gander-Goose Bay; Gander-St. John's; Bathurst-Montreal; Wabush-Goose Bay; Wabush-Sept-Iles; Goose Bay-St. John's. Quebec/Ontario: Baie Comeau-Montreal; Baie Comeau-Mont Joli; Gaspé-Iles de la Madeleine; Gaspé-Quebec City; Sept-Iles-Quebec City; Val d'Or-Montreal; Mont Joli-Montreal; Rouyn-Noranda-Val d'Or; Kingston-Toronto; London-Ottawa; North Bay-Toronto Windsor-Montreal Western Canada: Regina-Winnipeg; Regina-Saskatoon; Regina-Ottawa; Saskatoon-Ottawa. Station Closures The following are the Regional Airports where Air Canada is closing its stations: Bathurst (New Brunswick) Wabush (Newfoundland and Labrador) Gaspé (Quebec) Baie Comeau (Quebec) Mont Joli (Quebec) Val d'Or (Quebec) Kingston (Ontario) North Bay (Ontario)
  4. I continue to wonder what kind of lifeline Onex is supplying Westjet and on what terms. Onex won't underwrite deep losses. AC's cash raising amounts to a bath for shareholders, and ultimately Transat shareholders are in for a very big haircut.. But the privately owned airlines can't expect their owners, however, deep-pocketed, to keep writing endless cheques..
  5. Vietnam Airlines wants government loan https://airwaysmag.com/airlines/vietnam-airlines-asks-for-loan/ Latam suspends flights of Argentine subsidiary https://thepointsguy.com/news/latam-airlines-suspends-argentina-unit/
  6. The Big 3 US carriers now all say they will ban travellers who refuse to wear masks.
  7. I admit this has me scratching my head.... https://www.flyswoop.com/news/swoop-seeks-airport-partners-to-lead-economic-recovery/ Swoop, Canada’s leading Ultra-Low-Cost Carrier (ULCC) and an independently operated subsidiary of the WestJet Group of Companies, today issued a ‘Request for Proposal’ (RFP) seeking strategic airport partners in North and Central America and the Caribbean. The airline is interested in hearing from airports who share an entrepreneurial, consumer-driven mindset to collaborate with the ULCC to stimulate travel and support economic recovery. “We believe the key to recovery lies in strategic collaboration, creativity and innovation to get travellers moving back through airports and into the skies,” said Charles Duncan, President, Swoop. “We are encouraged by early signs of recovering demand for ultra-low fares and are eager to collaborate with airports across the region to re-think how we, as an industry, approach affordable and accessible air travel.” Swoop, which operated its first flights on June 20, 2018, remains confident in the long-term prospects for its ULCC business model and future growth. The airline is seeking innovative proposals from airports that understand providing value to travellers through fair fares, and low fees creates demand as well as the importance of travel and tourism in stimulating economic recovery.
  8. The $600 million was certainly repaid because it had a %12.75 total interest rate. Repayment was scheduled to be completed by 2014 the latest, although AC had the ability to repay it faster, and likely did - I just don't have the inclination to go through annual reports to find out when. AC ultimately repaid all of its high cost debt.
  9. Back to topic: Can anyone remember when the federal government last gave money or loan guarantees to a Canadian airline to deal with a situation of distress like the industry is experiencing? (I exclude aircraft finance loans, which are available to all buyers of Canadian aircraft, domestic and foreign; that's not crisis support.) I don't believe AC got any cash or loans in 2010, just more flexibility to deal with its pension deficit. I know in the 2003 bankruptcy reorganization, the feds were not part of it - first Victor Li tried, then ACE Aviation succeeded with a structure that burned the furniture to repay (handsomely) the new shareholders. I can't remember if the feds supplied aid after 9/11. All I can remember is that back in the 1990-92 timeframe, there was a fuel tax rebate option where airlines could claim the fuel taxes they had paid in exchanging for foregoing some of their tax losses. I think the ratio was 10 to 1 - ten dollars of foregone losses for each dollar of fuel tax rebated. The federal excise tax is 4 cents a litre, and presumably applies to fuel uploaded in Canada, not the US or overseas where local taxes, if any, would apply. AC has used about 17 billion litres of fuel the past four years (2016-2019). I don't know if there are exceptions to the excise tax like their are for aviation-specific taxes like Ontario bloody high aviation fuel tax, but if for sake of argument half of the 17 billion was subject to the excise tax, that would be $340 million, and a rebate at a rate of 10 to 1 would mean foregoing $3.4 billion in current and future losses, which are likely to be substantial anyway. I believe the tax rebate had a component where the airlines could repay the rebate and have the tax losses reinstated if they felt it had become advantageous to do so.
  10. No, it's not New Zealand. We can't have New Zealand because each province controls its health destiny. No one seems to believe zero is possible, so I don;'t know why you'd assume otherwise. If the EU designates Canada as a non-EU country whose citizens are admissible to its territory, there is a good chance Canada will reciprocate. That ought to be known by sometime in the next few weeks. The EU plan is to select countries which don't represent a threat; our current situation would normally make us eligible, so long as the US border remains closed.
  11. Interestingly, it looks like Boeing has had to concede to additional upgrades - including some rejected during the development of the MAX. https://www.seattletimes.com/business/boeing-aerospace/boeing-whistleblowers-complaint-says-737-max-safety-upgrades-were-rejected-over-cost/ A version of the proposed system, called synthetic airspeed, was already installed on the 787 Dreamliner. It was not directly related to the flight-control system — the Maneuvering Characteristics Augmentation System (MCAS) — that contributed to both crashes. But it would have detected the false angle of attack signal that initiated events in both accidents, and so potentially could have stopped MCAS from activating and repeatedly pushing down the nose of each jet. But installing it in the MAX would likely have meant 737 pilots needed extra training in flight simulators. Running thousands of pilots through simulator sessions would have delayed the jet’s entry into service and added substantial costs for Boeing’s airline customers, damaging the MAX’s competitive edge against the rival Airbus A320neo.
  12. Oh I can - it's called the Conservative party, which is so eager to open up it's doing it haphazardly in some cases. In Ontario, there is widespread criticism of the government for allowing day care centres to reopen without guidance or support - most, in fact, won't - and churches without a mandatory masking rule. It's all Doug Ford's gut - the director of public health for Ontario is rarely seen or heard. If we had had a proper lockdown in Ontario for 2-3 weeks at the outset, instead of Swiss cheese lockdown we myriad exceptions, we would be close to zero cases today.
  13. Avianca's plan https://thepointsguy.com/news/avianca-bankruptcy-will-fly-again/ Avianca’s restructuring plan is multi-fold. The airline plans to shrink its fleet that consisted of 158 passenger aircraft and 13 freighters at the end of 2019. The numbers include 10 Embraer E190s that it parked at the end of December. Initially, the carrier is seeking court authority to reject leases on 14 jets: two Airbus A319s, seven Airbus A320s, two Airbus A321s, two Airbus A330-300s and one Boeing 787-8, a filing on Monday shows. It plans to negotiate further fleet reductions with leasing companies and lenders. Avianca will also shrink its network. Unfortunately for Star Alliance travelers, the airline plans to close its Peru operation and end its service between Lima (LIM) and Cusco (CUZ), the closest airport to Machu Picchu. The move will leave Avianca’s daily flight between Bogotá (BOG) and Cusco, which it operated prior to the pandemic, as the only Star Alliance offering to the Peruvian city. The move will consolidate LATAM Airlines’ dominance in Peru. The Santiago, Chile-based carrier had a 64% share of seats in the Peruvian domestic market in 2019, according to Cirium schedule data. LATAM, a partner of Delta Air Lines, is Avianca’s primary competitor in South America.
  14. Can't answer the, but here's a new AC video on the topic. https://twitter.com/AirCanada/status/1270339869265575936
  15. Here is Westjet's latest on keeping planes as virus free as possible https://www.newswire.ca/news-releases/westjet-safety-above-all-810545718.html Videos on this page https://www.westjet.com/en-ca/travel-info/safety?sm_cid=social:ws-world:coronavirus-covid-safety:twitter