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Air Canada's COVID-19 actions

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4 hours ago, FA@AC said:

Layoff notices went out to FAs today.  The most junior left working will be at around the 20 year mark in seniority.

1998 hires were the first to go.

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12 hours ago, moeman said:

1998 hires were the first to go.

Can AC lay off FA’s out of seniority? i.e. by Base?

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2 hours ago, rudder said:

Can AC lay off FA’s out of seniority? i.e. by Base?

They can lay off by base, but a FA declared surplus at a given base can then displace a junior FA at a different base.  They opted not to do that this time and simply laid off from the bottom up.  I presume they'll rearrange the flying accordingly if there are imbalances.

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There are no Rouge FA's with that much seniority.  Will mainline FA's bid on or be assigned to those few remaining Rouge aircraft?  Can Rouge FA's keep working while senior mainline FA's are laid off?

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2 hours ago, Geminoid said:

There are no Rouge FA's with that much seniority.  Will mainline FA's bid on or be assigned to those few remaining Rouge aircraft?  Can Rouge FA's keep working while senior mainline FA's are laid off?

There have been no Rouge flights since April, and no Rouge FAs have worked since then.  They are on CEWS until next week and will then be on laid off status.

Although Rouge and mainline FAs don't fly together, we're all on one seniority list.  When recalls occur whether at mainline or Rouge the most senior laid off FA from the combined list is to be offered the position at either carrier regardless of which they worked at before being laid off.  

Many don't think that Rouge will end up restarting, although they do have flying scheduled over the next several months.  It's probably safe to bet that unless Rouge is of a certain size the inefficiencies of running two separate operations wipe out the cost savings from the cheap pilot and FA labour at Rouge.

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Thanks FA. I'm guessing a lot of FA's I know will be retiring now and several Rouge FA's I've gotten to know (on flights) will be unemployed for quite a while, at least from the airline. A sad situation.

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2 hours ago, Geminoid said:

 FA's I've gotten to know (on flights)...

Interesting that you felt the need to clarify that... 🤣

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16 hours ago, Geminoid said:

Thanks FA. I'm guessing a lot of FA's I know will be retiring now

73 retirements and 10 resignations.

 

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Wow.  I'm surprised at that low number.  There are a lot of FAs out there with a lot of seniority. When I left IFS almost 15 years ago, many of my peers had 25 years of service back then and they're still flying.

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https://www.newswire.ca/news-releases/air-canada-announces-closing-of-offering-of-shares-and-convertible-senior-notes-raising-gross-proceeds-of-nearly-c-1-6b-812920478.html

 

Air Canada Announces Closing of Offering of Shares and Convertible Senior Notes, Raising Gross Proceeds of Nearly C$1.6B 

MONTREAL, June 2, 2020 /CNW Telbec/ - Air Canada (TSX: AC) (the "Company") today announced the closing of its previously announced underwritten marketed public offering of 35,420,000 Class A Variable Voting Shares and/or Class B Voting Shares of the Company ("Shares") at a price to the public of C$16.25 per Share (the "Share Offering"), for aggregate gross proceeds of C$575,575,000, which includes the exercise in full by the underwriters of their over-allotment option to purchase up to 4,620,000 Shares for additional gross proceeds of C$75,075,000, and its concurrent marketed private placement of convertible senior unsecured notes due 2025 ("Convertible Notes") for aggregate gross proceeds of US$747,500,000 (or C$1,018,842,5001) (the "Convertible Notes Offering" and together with the Share Offering, the "Offerings"), which includes the exercise in full by the initial purchasers of their over-allotment option to purchase up to US$97,500,000 (or C$132,892,5001) principal amount of Convertible Notes.

The Company will use the net proceeds from the Offerings to supplement the Company's working capital and other general corporate purposes. The net proceeds from the Offerings will serve to increase Air Canada's cash position, thereby allowing for additional flexibility both from an operational standpoint and in the implementation of its planned mitigation and recovery measures in response to the COVID-19 pandemic.

"Coming into 2020, Air Canada enjoyed a very strong liquidity position, before the COVID-19 pandemic and government-imposed quarantines and border restrictions destroyed demand and depleted cash. This important financing will allow us to keep our strong relative position and better manage debt leverage and risk as government restrictions are lifted and the market recovers. The positive reaction from the public markets is a strong endorsement of the strength of our franchise," said Michael Rousseau, Deputy Chief Executive Officer & Chief Financial Officer of the Company.

The Shares offered in the Share Offering and the Convertible Notes and Class A Variable Voting Shares and/or Class B Voting Shares of the Company issuable upon conversion of the Convertible Notes have not been, and will not be, registered under the U.S. Securities Act of 1933 (the "Securities Act"), or any state securities laws and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the rules promulgated thereunder and applicable state securities laws. 

TD Securities Inc., J.P. Morgan Securities Canada Inc. and Citigroup Global Markets Canada Inc. acted as active bookrunners for the Share Offering. J.P. Morgan Securities LLC, TD Securities Inc. and Citigroup Global Markets Canada Inc. acted as active bookrunners for the Convertible Notes Offering.

 

Edited by dagger
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