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rudder

Transat At Post Another Loss

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Transat debt is $0

True, however, the unionization is a big problem.

I'm not sure if that blanket "0" statement tells the whole story. The intricacies of on- & off- balance sheet items in a financial statement sail a bit over my head, but somebody owes $600M+ to somebody else, offsetting that with TRZ's cash and other liquid assets.

DEBT LEVELS

The Corporation’s debt levels as at January 31, 2012 were lower than as at October 31, 2011.

Our balance sheet debt is nil as the debt was fully repaid during fiscal 2011.

Our off-balance sheet debt (total debt) declined by $25.5 million to $628.2 million from $653.7 million. The decline in total debt resulted from repayments during the quarter ended January 31, 2012.

Net of cash and cash equivalents and our investments in ABCP, the Corporation reported $336.9 million in total net debt as at January 31, 2012, down $56.4 million from $393.3 million as at October 31, 2011.

TRZ's market cap is aprox $150M. OTOH, total assets are aprox $1.4B according to the Q1 report. I'll leave any assessment of 'how much is too much' to folks with a stronger grasp of that stuff than me, but I'm sure it would be examined closely in any prospective purchase.

And Unions? Other than the usual corporatist brainwash about collective bargaining, I, too, wonder if you can elaborate on the "big problem".

Cheers, IFG :b:

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Actually ,there was rumour of Jazz merging with Transat a few months ago along with AC getting out of AC Vacations buying seats on another carrier. Is this one of the reasons Jazz getting out of Thomas Cook? Do I really think so? No. Just food for thought.

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I wish I had a dollar for every airline-related rumour I've heard that didn't come true. I could retire quite comfortably.

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Actually ,there was rumour of Jazz merging with Transat a few months ago along with AC getting out of AC Vacations buying seats on another carrier. Is this one of the reasons Jazz getting out of Thomas Cook? Do I really think so? No. Just food for thought.

It was Thomas Cook that got out of Jazz and not the other way around.

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Is Jazz capable of acquiring and operating air Transat? Yes. Are they willing? There is no such indication even though Jazz now have two years of large aircraft international charter operations on their C.V.

TRZ stock price is plunging. The takeover target may become Groupe Transat itself. JME was thoroughly unconvincing in articulating his plan (that wasn't really the plan was it?)

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Notwithstanding Transat's identity as the airline of La Belle Provence, at the current share price of the holding company it is exposed to a potential corporate raid and dismantlement. Groupe Transat's global assets may be worth more broken into pieces and sold than they are collectively held. JME better be working on something more substantial than what has been presented given that suggesting premium product in a declining global economy will right the income/expense imbalance seems completely out of touch with current economic reality.

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Notwithstanding Transat's identity as the airline of La Belle Provence, at the current share price of the holding company it is exposed to a potential corporate raid and dismantlement. Groupe Transat's global assets may be worth more broken into pieces and sold than they are collectively held. JME better be working on something more substantial than what has been presented given that suggesting premium product in a declining global economy will right the income/expense imbalance seems completely out of touch with current economic reality.

Well, he could have read the Montreal papers. Air France is pulling the A380 out of Montreal starting with the winter schedule because of a decline in premium traffic. The total seat reduction in the downgauging is 9 percent a day, but a 40% drop in F and J seating.

http://affaires.lapr...-a-montreal.php

«L'A380 n'était pas l'avion le mieux adapté à la ligne Montréal-Paris», a déclaré M. Pelous.

"The A380 isn't the plane best suited for Montreal-Paris."

Edited by dagger

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