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6 hours ago, Marshall said:

'why the doubt and gloom, it may be a help towards retaining airline jobs. 

 

Because the insurance industry is a financial enterprise, not a charity for airlines, or condo owners or anything else for that matter. Anyone who’s been involved in buying commercial insurance the past few years will tell you they’ve become much more risk averse in that time. The available number of underwriters for many insurance portfolios has dropped by half since 2017. There are a ton of unknowns in providing insurance for COVID-19 risks so it took some time to build an insurance model and cost it out. 

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Air Canada tops U.S. list of foreign airline complaints over refunds

From BNN Bloomberg – link to story

The Canadian Press | 21 September 2020

Air Canada A lone passenger walks past the Air Canada check-in counter at Montreal-Trudeau International Airport in Montreal, on Wednesday, April 8, 2020. Air Canada plans to rehire 16,500 laid-off workers via Ottawa’s emergency wage subsidy, though the vast majority will remain at home amid the collapse of global travel triggered by the COVID-19 pandemic. , THE CANADIAN PRESS/Paul Chiasson

MONTREAL – Air Canada had more refund-related complaints to the U.S. Department of Transportation than any other foreign carrier in June, and the second-highest number of any airline for the second-straight month.

The department says Air Canada was the target of 1,028 refund complaints or 13 per cent of the 7,811 filed against non-U.S. airlines in the month, outpacing more than 90 foreign carriers in the category.

Chicago-based United Airlines was the only airline with more refund complaints, at 1,467.

Along with other Canadian carriers, Air Canada has refused to reimburse most customers whose flights were cancelled due to the COVID-19 pandemic since Ottawa has not made such refunds mandatory.

The U.S. and European Union require airlines to refund these passengers, meaning complaints to the U.S. regulator are a potential path to reimbursement for some Air Canada customers.

Air Canada’s passenger volume on flights with a U.S. component rank behind British Airways and Lufthansa for international carriers and behind four U.S. airlines.

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The Canadian government has not provided one red cent to Canada's airlines so unlike almost every other country on the planet they/we have to fend for ourselves.

There's the cynic in me that thinks that the liberals would love to see all the airlines fail so they can get slightly closer to their unrealistic, unattainable carbon emission targets

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6 minutes ago, Maverick said:

The Canadian government has not provided one red cent to Canada's airlines so unlike almost every other country on the planet they/we have to fend for ourselves.

There's the cynic in me that thinks that the liberals would love to see all the airlines fail so they can get slightly closer to their unrealistic, unattainable carbon emission targets

I don't think that is cynical at all.  At the moment, there isn't a more plausible explanation for the entire industry to be all but left for dead in this country.  

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39 minutes ago, Maverick said:

There's the cynic in me that thinks that the liberals would love to see all the airlines fail so they can get slightly closer to their unrealistic, unattainable carbon emission targets

However they can find half a billion dollars to prop up a product that they have to bribe the customer to buy.

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25 minutes ago, Airband said:

However they can find half a billion dollars to prop up a product that they have to bribe the customer to buy.

By the middle of the decade, every single automaker will be deep into electrical vehicle production. Volvo, for one, is exiting production of internal combustion engines. All thee of our bus makers have electric vehicles, there is an interesting company in Quebec, Lion Electric, now selling everything from electric garbage trucks to electric 18 wheelers. The future is coming on faster than most people realize. Yesterday, Airbus even unveiled its concept zero emission aircraft - both EV and hydrogen fuel cell powered. 

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1 hour ago, Airband said:

However they can find half a billion dollars to prop up a product that they have to bribe the customer to buy.

For now now yes but I saw the money as an investment is spinoff and support local industries.  If we don't it here there isn't a state in the US that wouldn't do the same in our place.

Edited by Specs
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Devil's advocate....What purpose does air travel serve?

Transportation...relatively quickly...from A to B. And for what purpose?

To conduct business or to marvel at the wonders of B.

Increasingly, companies are discovering that it is not actually necessary to go to B to conduct business. In fact, it is much cheaper to stay home and use tech to communicate just as though you actually went to B.

Wait for wide availability and affordability of VR. I've been to Santorini. It would have been a lot cheaper and probably more enjoyable to see the sights via VR.

Truthfully, most of my trips have been hallmarked by the time spent at a streetside table quaffing Stella watching passers-by. Hmmm..they now sell Stella down the street.

I just need to set up a table along a busy pedestrian walkway....and I'm good to go!!

And my wife makes a great croissant!

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11 hours ago, Fido said:

I think that it has been proven that no one buys an electric passenger vehicle without a government subsidy.  We all get to pay.

interesting comment.

In Ontario, as well as other places in Canada the subsidies have ceased for Electric vehicles and yet sales show an increase year over year. the only subsidy you can get now for an EV is up to $1000 towards installation of a Level 2 Charger but ONLY if it works with a vehicle for which the earlier subsidy applied.

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"Sales of electric vehicles in Ontario have plummeted since the Progressive Conservative government cancelled a rebate last year, hampering progress toward a national target.

In the first six months of this year, sales in Ontario were down more than 55 per cent from the same period in 2018, according to data from Electric Mobility Canada. In the second quarter of this year 2,933 electric vehicles were sold in the province, down from 7,110 in the same period last year.

Ontario is the only province not seeing increases in sales, year over year.

Quebec and British Columbia, which have their own provincial rebates, have long been leading in total sales. Ontario's figures had been increasing on par with theirs until the province's financial incentive disappeared.

Under the previous Liberal government, Ontario had offered up to $14,000 back for buyers of electric vehicles, but Premier Doug Ford's government cancelled it after winning the June 2018 election, saying it was going to people who could already afford expensive cars.

Shortly after that, Ontario's sales sharply dropped — and national sales did, too.

They rebounded after the introduction this spring of a $5,000 federal rebate, but national sales of electric vehicles are still only at 3.5 per cent, which is a far cry from the federal government's target of 10 per cent in 2025."

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Air Canada Vacations increases COVID-coverage limit, extends plan to Saskatchewan residents

From Travelweek Canada – link to story

Wednesday, September 23, 2020 | Posted by Travelweek Group

MONTREAL — Air Canada Vacations’ new COVID-19 Coverage & Assistance Plan, which launched last month, is now available to eligible travellers residing in Saskatchewan.

The Plan, administered by Allianz Global Assistance, is included in ACV packages to Mexico and the Caribbean. It’s available to eligible travellers who book a package on or after Aug. 31, 2020 for travel between Sept. 4, 2020 and April 30, 2021.

In addition to expanding coverage to Saskatchewan residents, ACV has also increased the Policy maximum amount from $100,000 per insured person per trip, to $200,000 per insured person per trip.

For more information about the COVID-19 Coverage & Assistance Plan, click here.

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On 9/22/2020 at 12:00 PM, Maverick said:

The Canadian government has not provided one red cent to Canada's airlines so unlike almost every other country on the planet they/we have to fend for ourselves.

There's the cynic in me that thinks that the liberals would love to see all the airlines fail so they can get slightly closer to their unrealistic, unattainable carbon emission targets

There were two passages in the throne speech of interest - one was specific commitment to help the travel and hospitality sectors - but with no specifics

This is the section of the speech

This fall, in addition to extending the wage subsidy, the Government will take further steps to bridge vulnerable businesses to the other side of the pandemic by:

  • Expanding the Canada Emergency Business Account to help businesses with fixed costs;
  • By improving the Business Credit Availability Program;
  • And by introducing further support for industries that have been the hardest hit, including travel and tourism and cultural industries like the performing arts.

The other addresses regional routes as follows:

And to further link our communities together, the Government will work with partners to support regional routes for airlines. It is essential that Canadians have access to reasonable and affordable regional air services. This is an issue of equity, of jobs, and of economic development. The Government will work to support this.

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Air Canada Announces Longer-Term Refinancings to Replace Short-Term Facilities

air_canada_logo.jpg?w=1024
  • $787.7 million secured refinancing of 18 Airbus A220 aircraft
  • US$552.6 million Class A and B Enhanced Equipment Trust Certificates, Series 2020-2

MONTREAL, Sept. 23, 2020 /CNW Telbec/ – Air Canada (TSX: AC) (the “Company”) today announced that it recently completed two longer-term refinancing transactions for a total amount of approximately $1.52 billion, replacing short-term facilities.

The first transaction consists of a committed Secured Facility totalling $787.7 million to finance Air Canada’s purchase of the first 18 Airbus A220 aircraft with a term of 12 years from delivery of each aircraft on a floating interest basis based on CDOR. This equates to an interest rate of approximately 2.39% using current CDOR rates. As aircraft are financed under this new Canadian dollar Secured Facility, the Bridge Financing of $787.7 million for the same 18 Airbus A220 aircraft put in place in April 2020 will be repaid concurrently. Any amount left unpaid under the Bridge Financing will be repaid following the financing of the 18th A220 aircraft expected in the first quarter of 2021.

The second transaction consists of a private placement of two tranches of Enhanced Equipment Trust Certificates, the proceeds of which were used to purchase equipment notes issued by Air Canada and secured by three Boeing 787-9 aircraft, three Boeing 777-300ER aircraft, one Boeing 777-200LR and nine A321-200 aircraft. The two tranches of certificates have a combined aggregate face amount of U.S.$552.6 million and a weighted average interest rate of 5.73%. The private placement is comprised of Class A Certificates and Class B Certificates. The Class A Certificates totalling U.S.$452.6 million have an interest rate of 5.25% per annum and a final expected distribution date of April 1, 2029. The Class B Certificates totalling U.S.$100 million have an interest rate of 9.00% per annum and a final expected distribution date of October 1, 2025. Air Canada used the proceeds from this financing together with cash on hand to repay in full the U.S.$600 million 364-day term loan originally put in place in April 2020.

The debt maturities in 2021 previously disclosed in our Q2 2020 results will be, on a pro forma basis, reduced by approximately $1.42 billion and are now estimated to total $1.71 billion, once both aforementioned bridge loans are fully repaid.

“These two refinancing transactions were completed in an extremely challenging environment and continue to demonstrate Air Canada’s ability to access financial markets on attractive terms and conditions to either improve liquidity or to refinance existing debt to push out maturities longer term and lower overall financial risk,” said Pierre Houle, Managing Director and Treasurer of the Company.

The Class A and Class B Enhanced Equipment Trust Certificates (the “Certificates”) have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and state securities laws. The Certificates were or will be offered and sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act, and to persons other than U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act. The Certificates have not been qualified for sale to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the Certificates in Canada was or will be made on a basis that is exempt from the prospectus requirement of such securities laws. This press release shall not constitute an offer to sell the Certificates or the solicitation of an offer to buy the Certificates in any jurisdiction.

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