PORTER'S 10 YEARS-WHERE DO THEY GO FROM HERE....

[vikingwarrior]

Porter Airlines' growth strategy in question as scrappy airline turns 10

http://www.bnn.ca/porter-airlines-growth-strategy-in-question-as-scrappy-airline-turns-10-1.589622

 

Political turbulence follows Porter Airlines into its second decade

http://business.financialpost.com/news/transportation/political-turbulence-follows-porter-airlines-into-its-second-decade

[DEFCON]

Political turbulence has been ever present from the moment Porter applied for its OC.

 

 

[Super 80]

At this point in time I suspect Porter can get most of what they want at YTZ by waiting. Preclearance is coming, the RESA issue is going to necessitate an adults-only conversation about the runway and by that time the CS100 will have been flying into LCY for a couple years. Adam Vaughn for his part is trying to get himself named to the cabinet as "Minister of Toronto" and when that doesn't happen he will rapidly burn his bridges, unsuccessfully run for mayor and probably wouldn't be renominated federally.

[vikingwarrior]

With jet dream dashed, Porter turns to slower growth

https://www.thestar.com/business/2016/10/23/with-jet-dream-dashed-porter-turns-to-slower-growth.html

 

 

 

 

 

 

 

 

[Guest]

so far so good considering what our experts said when they started up:

 

[DEFCON]

The Bean's crystal ball was really clouded whenever it came to Porter predictions.

 

[Kip Powick]

38 minutes ago, DEFCON said:

The Bean's crystal ball was really clouded whenever it came to Porter predictions.

 

I heard that El Beano is trying to start an USLC (Ulta Super Low Cost ) airline on the Pitcairn Islands.....

[vikingwarrior]

 

Its seems the slam dunk US Pre-clearance (just like the slam dunk IPO from 5 years ago) the Deluces' were counting on to give Porter yet a wee bit of growth.....REPEAT wee bit is tangled in the weeds

http://business.financialpost.com/news/economy/canada-u-s-border-deal-stuck-in-legislative-limbo-and-will-depend-on-lame-duck-congress-to-free-it

Is the latest turboprop order a little premature also?

 

 

[vikingwarrior]

First off Happy New Year to all.....I am a bit curious on this point.

With the last disastrous IPO attempt many moons ago; Bob Deluce said that they wouldn't/couldn't go to the market because the market wasn't appropriate for an IPO at that time. Specifically;

1) "Porter had previously planned to go public, but decided not to proceed in 2010 due to “unfavourable market conditions.”

2) "At some point in time I think an IPO would be inevitable,” he says. “It’s something that we’ll certainly consider under the right set of circumstances.”

3) Deluce did not address specifically when he might once again consider an initial public offering, but noted the airline is prepared to move when “markets are right.”

Source: http://www.bnn.ca/porter-airlines-isn-t-for-sale-but-an-ipo-is-inevitable-ceo-deluce-1.526536

The NASDAQ Airline index is up 14.1% since Trump's victory on Nov 8th, 2016 or over 75% on an annualized basis and significantly outperforming the NASDAQ 100

http://www.nasdaq.com/symbol/xal/stock-chart?intraday=off&timeframe=1y&splits=off&earnings=off&movingaverage=None&lowerstudy=volume&comparison=on&index=nasdaq100&drilldown=off

Clearly the financing window (the markets are ripe) is open to get Porters initial investors out now; if not out now after 10 years well I  really don't know when....

Contrary to the above noted article's headline "Porter Airlines isn’t for sale....."; rumour on the street has it the airline is being shopped around now in the New York area....

What happened to the concept that an IPO is inevitable for Porter Airlines and the airline is not going to be sold?

 

 

 

 

[Super 80]

And who precisely buys Porter at this very moment and why?

Air Canada can't, if they buy Porter and attempt to consolidate yet again Encore will be at the ready to seize upon any disused slot.

WestJet won't (at least not yet) aside from the island WestJet can still recognize a lot of growth by growing Encore out of YYZ, YOW, YUL and YHZ.

The only scenario in which I see WestJet acquire Porter would be if faced with an Alberta in severe decline to rapidly grow their regional market in Ontario.

Porter and anyone else who is significantly controlled by private equity is for the sale at all times.

[rudder]

Porter is for sale and always has been.

But there is nobody willing to pay the unrealistic asking price. Also hard to calculate enterprise value when the financials seem based on rumour and rhetoric rather than fact.

If there were bona fide financial results that were included in a pro forma that could pass muster under the scrutiny of due diligence from institutional investors, I suspect that more credible information would have been made available.

Perhaps 2017 will be the year of Porter IPO v2.0

[vikingwarrior]

5 hours ago, rudder said:

Porter is for sale and always has been.

But there is nobody willing to pay the unrealistic asking price. Also hard to calculate enterprise value when the financials seem based on rumour and rhetoric rather than fact.

If there were bona fide financial results that were included in a pro forma that could pass muster under the scrutiny of due diligence from institutional investors, I suspect that more credible information would have been made available.

Perhaps 2017 will be the year of Porter IPO v2.0

 

Rudder,

The Deluce’s are masters at “OPEN HOUSES” if you know anything about this clan; the place has been up for sale for a minimum of 7 years out of the 10 years they have been operating the airline.

Porter’s initial private investors are stuck in the mud (nobody invests or holds onto private equity for 10 years)

Porter has been:

1. Recognized as the Best Small Airline in the World

https://www.flyporter.com/About/News-Release-Details?title=Porter+is+Best+Small+Airline+in+World%3A+Cond%C3%A9+Nast+Traveler+2013+10

1. Second-Most Reputable Canadian Company

https://www.flyporter.com/about/News-Release-Details?title=Porter+Airlines+Ranked+Second-Most+Reputable+Canadian+Company+2016+06&culture=en

1. Porter Airlines and Billy Bishop Airport named among world’s best

https://www.thestar.com/news/gta/2016/10/18/porter-airlines-and-billy-bishop-airport-named-among-worlds-best.html

So they sell the airline terminal for more than top dollar but haven’t been able to sell the airline in ten years?  What is wrong with this picture?

Also Mr.  Garneau has given Deluce and others a gift-a much easier sell to foreign investors;

http://www.theglobeandmail.com/report-on-business/canada-to-boost-foreign-ownership-cap-in-airlines-to-49/article32656455/

Rumour has it that Porter is being shopped in the New York area; the smart money (private sale, institutions, hedge funds, etc...) versus an IPO.

Failing that, will Porter go after the “dumb money”; the retail investor and the IPO route-the window closes quickly?

The NASDAQ airlines index clearly indicates that the tide has floated all boats versus the best NASDAQ 100 stocks.  

Can they finally capitalize a sale of the airline while all boats have floated at high tide? Now or never me thinks?

We must remember we have 60 days of spectacular stock market results and this likely won’t happen the full year; move now or never Mr. Racoon.

[Guest]

Porter Airlines grounds all flights citing system outage

Few details immediately available; unknown how long flights will be affected

CBC News Posted: Jan 14, 2017 4:20 PM ET Last Updated: Jan 14, 2017 4:47 PM ET

Porter Airlines has grounded all of its flights due to a system outage, it said in a tweet. (Mark Blinch/Reuters)

 

Porter Airlines has grounded all of its flights, citing a system outage.

The airline tweeted about the issue just after 4 p.m. Saturday, advising passengers to check their flight status before heading to the airport.

It's unknown how long flights will be affected.

No other details were immediately available

[Guest]

Porter Airlines resumes flights after system outage

A Porter Airlines plane lands next to a taxiing plane at Toronto's Island Airport on Friday, Nov. 13, 2015. (Chris Young / THE CANADIAN PRESS)

The Canadian Press
Published Saturday, January 14, 2017 4:52PM EST
Last Updated Saturday, January 14, 2017 6:58PM EST

TORONTO - Porter Airlines says its operations are returning to normal after a technical problem grounded all its flights Saturday afternoon.

The Toronto-based airline blamed the problem on a system outage, but didn't immediately have a specific cause.

Aircraft were grounded for about two hours and five flights were cancelled.

Porter said in an email that about 400 passengers were affected.

Porter operates flights out of Toronto's island airport to and from cities in Central and Eastern Canada, and seven locations in the U.S.

[vikingwarrior]

 

Porter Airlines and Mr. Deluce have had over 2 months to take advantage of this open finance window in floating their boat airline stocks significantly outperforming the market in general;

http://www.nasdaq.com/symbol/xal/stock-chart?intraday=off&timeframe=3m&splits=off&earnings=off&movingaverage=None&lowerstudy=volume&comparison=on&index=nasdaq100&drilldown=off

There is a rumour and word that Porter Airlines and its masters have been Trumps territory trying to flog the airline but that financing window may be closing very quickly:

Trump rally is losing steam and stocks could fall into correction territory: Strategist

http://www.cnbc.com/2017/01/13/trump-rally-is-losing-steam-and-stocks-could-fall-into-correction-territory-strategist.html

Will we see a deal and who might be seen as a taker if the rumour is correct-that the airline is on the block or seeking financing?

 

[Guest]

viking? you seem have a oar in the water re Porter. Care to explain what it is?

[vikingwarrior]

21 hours ago, Malcolm said:

viking? you seem have a oar in the water re Porter. Care to explain what it is?

Malcolm,

Porter has constantly complained FOR YEARS that they couldn’t do a deal in the market and the circumstances are never right for a sale or IPO financing.

Well those conditions are now here and an observation was made that the markets and the airline stocks are at a high point in order to be able to pay top dollar or use stock at a high point for an acquisition.

We need more competition in the airline sector and SURELY SOMEONE OUT THERE must consider Porter Airlines attractive enough to take a run at it.

As Mr. Deluce has gone on the record that they were profitable last year and expects to be going forward and the rumour floating around that the airline was being shopped amongst the smart money;

http://ca.reuters.com/article/businessNews/idCAKCN0Z12NG

Can he do it so Porter can go to its next set of goals/growth in the airlines history after not much happening the last few years?

If it doesn’t happen now, then when?

[Guest]

Viking, I will consider my question unanswered. Cheers

[UpperDeck]

Troll!!

[Guest]

1 hour ago, UpperDeck said:

Troll!!

to whom are you directing that????  

[Super 80]

Porter's mascot should have been the Platypus. It is exists and appears to be thriving but the experts can't explain how that is.

[DEFCON]

AC's ego will preclude their buying Porter; it'd be tough for them to acknowledge the failures of the past. It might be wise of WJ to take advantage of the situation and purchase Porter now.

Regardless, Trudeau's pack are falling fast and in four years, but probably less, Porter will see another opportunity to push the runway extension program come their way.

 

[Super 80]

The RESA issue is going to bring about an adults-only conversation about the runway. No Community Air, No Adam Vaughn, No City of Toronto.

I don't think they're going to try again on the C Series issue until there is a solid track record of inoffensive operation at LCY.

[MD2]

For the time being, the government seems to have been forced into an embarrassing situation by one Toronto MP. In the meantime, some overdue and much-needed work is being done at the airport which is good for all such as resurfacing the runways, adding centerline lighting, adding pre-clearance, "rejuvenating" the terminal, addressing RESA, taking steps to reduce noise even more by adding run-up barriers and decommissioning RWY 15/33, etc.

As for the long-standing Porter sale(!), presumably all things can be for sale for the right price, however as things are right now there is no real advantage in selling for Porter as it will likely not maximize its potential, nor is there a desperate need for any airline in Canada to buy it as they see Porter contained and then in a better climate the true value of the company is best unlocked through an IPO.

[blues deville]

1 hour ago, MD2 said:

For the time being, the government seems to have been forced into an embarrassing situation by one Toronto MP. In the meantime, some overdue and much-needed work is being done at the airport which is good for all such as resurfacing the runways, adding centerline lighting, adding pre-clearance, "rejuvenating" the terminal, addressing RESA, taking steps to reduce noise even more by adding run-up barriers and decommissioning RWY 15/33, etc.

Which one? Olivia or Adam?

On days with excessively strong north winds would Porter ever use runway 33?We did occasionally at city express but all the noise (Dash 8)) generated would have been over the water or nude beach on short final.