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Porter going public via IPO


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Clive Beddoe? stirthepot.giflaugh.gif

Seriously Kip, you can't plant a seed like that one and then ask us to just ignore it. Enquiring minds want to know! I know it's against forum rules to out those who wish to remain anonymous, but in a case like this one where much passion is obviously involved, one can't help but want to know which insider is wearing the MD2 moniker.

Edited by J.O.
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You can figure it out with the initials and the names in the corporate structure at Porter. The '2' may stand for the 'second' generation:biggrin2:

No that can't be it. No airline would allow one of it's top exec's to come on an aviation forum and spew a stream of caustic remarks, personnel attacks and downright arrogance.

:whistling:

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  • 2 weeks later...

Ever the Queen flies Porter - I can't imagine why this IPO is delayed and wouldn't be successful! :icon_oak:

http://www.theglobeandmail.com/news/politics/the-queens-tour-canada-day-address-off-to-the-races-a-royal-visit-to-rim/article1575115/

"After her day with the ponies, the Queen will fly by Porter Airlines to the technological heart of the country in Waterloo for a tour of a production line at Research In Motion, maker of the BlackBerry."

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Porter running into obstacles.

Pre-clearance request hits turbulence on both sides of the border.

It's YYZ vs YTZ now.

http://www.theglobeandmail.com/globe-investor/investors-rival-airlines-stall-porters-us-hopes/article1575730/

Pre-clearance for the annoited monopoly at YTZ!! The huddled masses at YYZ can wait endlessly in line!

How much do you want to bet that the GR groups at United / Continental, soon to be the largest airline on the planet, are lobbying Washington along the lines of "no pre clearance at YTZ unless we get precisely the number of slots we desire to compete head to head with Porter, both now on NYC and Chicago, and anywhere else we choose to compete in the future".

Are the US Gov't / labor unions particularly interested in exporting airline jobs to Canada, and using US taxpayer dollars to underwrite the competitive disadvantage given to the defacto Cdn monopoly at Billy Bishop Airport?

I doubt it....

And what happens if the US carriers get all the remaining slots, leaving a domestic monopoly charging the highest fares in the country at a tax payer owned airport in the nations largest market?

Will that even pass the giggle test at the Competition Bureau? I doubt it.

I can see 2 solutions.

More slots being created or a reallocation of existing slots to ensure a fair and balanced marketplace.

Other than Porter, who in their right mind would argue against fair and balanced marketplace that benefits all consumers?

Alas, neither solution is heartwarming to an existing monopolist.

:cool:

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Porter running into obstacles.

Pre-clearance request hits turbulence on both sides of the border.

It's YYZ vs YTZ now.

http://www.theglobeandmail.com/globe-investor/investors-rival-airlines-stall-porters-us-hopes/article1575730/

"But Toronto's Pearson International Airport and the Washington-based Air Transport Association of America have filed objections to the application to the U.S. Department of Transportation and the U.S. State Department."

Well that is an interesting course of action, considering pre-clearance is administered by the CBP Office of Air and Marine and Office of Field Operations.

Edited by Super 80
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Pre-clearance for the annoited monopoly at YTZ!! The huddled masses at YYZ can wait endlessly in line!

How much do you want to bet that the GR groups at United / Continental, soon to be the largest airline on the planet, are lobbying Washington along the lines of "no pre clearance at YTZ unless we get precisely the number of slots we desire to compete head to head with Porter, both now on NYC and Chicago, and anywhere else we choose to compete in the future".

So U.S. Customs and Border Protection is going to entertain the competition arguments airline lobbyists?

Present US policy is to expand pre-clearance in the name of potentially keeping suicide bombers from boarding US bound flights.

Whining isn't news.

If I sent some garbage to the DOT demanding that WestJet forfeit their foreign air carrier permit, because... uhh... well it doesn't really matter this clown would write an article "WestJet US Flights in Jeopardy"

Edited by Super 80
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Porter running into obstacles.

Pre-clearance request hits turbulence on both sides of the border.

It's YYZ vs YTZ now.

Personally, I think pre-clearance is a pain in the butt. From a carrier's perspective it is good, I suppose, because it lets you go to airports that wouldn't normally have customs available and allows for domestic connections in the States, neither of which Porter really cares about at this point.

Having pre-clearance means you have to show up way early for your flight because you never know how long the US Customs agents will feel like holding up passengers on that particular day. Sure, it saves time at the other end, which is fine for business people who don't have to wait for bags, but the average person has to wait for their bags anyway, so they might as well wait for them in a customs line rather than in front of a dormant carousel.

The biggest disadvantage of post-clearance is that you might end up in line behind passengers off an Air Somolia flight and get hung up, but that happening on occasion has gotta be better than either showing up way early when you don't need to or showing up a reasonable time ahead of your flight only to find out that US Customs has decided to be more than sticky today and the lineup causes you to miss your flight.

I have always thought we should boot U.S. Customs out of Canada until they remove the Customs and Immigration charges that they charge air travelers but not auto travelers. Basically, by applying this air charge, they are encouraging, almost rewarding, travelers from the most populous areas of Canada to use US carriers from Plattsburg, Buffalo and whatever the local airport in northern Washington state is.

Plattsburg even calls itself "Montreal's US Airport" on their website.

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Personally, I think pre-clearance is a pain in the butt. From a carrier's perspective it is good, I suppose, because it lets you go to airports that wouldn't normally have customs available and allows for domestic connections in the States, neither of which Porter really cares about at this point.

Having pre-clearance means you have to show up way early for your flight because you never know how long the US Customs agents will feel like holding up passengers on that particular day. Sure, it saves time at the other end, which is fine for business people who don't have to wait for bags, but the average person has to wait for their bags anyway, so they might as well wait for them in a customs line rather than in front of a dormant carousel.

The biggest disadvantage of post-clearance is that you might end up in line behind passengers off an Air Somolia flight and get hung up, but that happening on occasion has gotta be better than either showing up way early when you don't need to or showing up a reasonable time ahead of your flight only to find out that US Customs has decided to be more than sticky today and the lineup causes you to miss your flight.

I have always thought we should boot U.S. Customs out of Canada until they remove the Customs and Immigration charges that they charge air travelers but not auto travelers. Basically, by applying this air charge, they are encouraging, almost rewarding, travelers from the most populous areas of Canada to use US carriers from Plattsburg, Buffalo and whatever the local airport in northern Washington state is.

Plattsburg even calls itself "Montreal's US Airport" on their website.

The Feds are going to have to start thinking about how to level the playing field. Allegiant / Valujet 2.0 must be laughing their rear ends off.

:cool:

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It's pretty safe to say that Porter is, financially speaking, an unmitigated disaster.

$40+ million in net losses since launch, with another $6m in the red in the most recent quarter, even with monopoly pricing and $1,577 walk-up fares from Toronto to New York? Even with daily full page ads in each of Toronto's newspapers, advertising fares that are completely uneconomic for a high unit cost operator like Porter....

They gotta make $13m+ net in 2010 to support a $6.50 share price with a 13x eps multiple. I can't wait to see how they propose digging themselves out of a $6m first quarter hole, especially with competition and an impending yield meltdown on the near horizon.

You have to be some kind of an optimist to believe in this story.

At this rate, it won't be long before Porter joins the infamous Titanic watch.

:cool:

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