Air Canada's COVID-19 actions


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22 minutes ago, rudder said:

Numbers are out this morning.

$433MM loss in the quarter.

Estimate capacity reduction for Q2 of 85-90% and 75% for Q3.

Accelerated retirement of 79 aircraft.

Rudder are these AC's numbers you are quoting?

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For those directly affected by these very difficult decisions as well as those now looking over their shoulder... Having seen a bit of this in a previous life, this too, shall eventually pass to

After reading this thread my thoughts went back 20 years to a recorded telephone message, from Robert Milton, to all employees explaining the Canadian Merger.  His explanation to employees was the Fed

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Air Canada reports $1.05B first-quarter loss due to impact of COVID-19 pandemic

Very large news release .... the complete release can be viewed at:

https://www.newswire.ca/news-releases/air-canada-reports-first-quarter-2020-results-828228130.html

https://www.newswire.ca/news-releases/air-canada-reports-first-quarter-2020-results-828228130.html

 

MONTREAL, May 4, 2020 /CNW Telbec/ - Air Canada today reported first quarter 2020 EBITDA(1) (earnings before interest, taxes, depreciation and amortization) of $71 million compared to first quarter 2019 EBITDA of $583 million  The airline reported an operating loss of $433 million compared to operating income of $127 million in the first quarter of 2019. At March 31, 2020, unrestricted liquidity amounted to $6.523 billion compared to unrestricted liquidity of $7.380 billion at December 31, 2019. 

"Our first quarter results reflect the severity and abruptness of the impact that the COVID-19 pandemic has had on Air Canada, which started to be felt across the global airline industry in late January with the suspension by many carriers, including Air Canada, of services to China. The impact was exacerbated during the month of March with mandated social distancing, unprecedented government-imposed travel restrictions in Canada and around the world and the shutting down of economies.  As significant as the financial damage has been, our prime concern remains the health and safety of our customers and our employees, whom I thank for their unwavering dedication under impossible conditions. I also want to acknowledge the pandemic's effects upon all of our other stakeholders, particularly those in the travel trade community. Be assured that we are resolutely committed to bringing our airline successfully through this crisis," said Calin Rovinescu, President and Chief Executive Officer of Air Canada.

"The past quarter was the first in 27 consecutive quarters that we did not report year-over-year operating revenue growth. Our solid January and February results gave us every encouragement that this performance would continue until the sudden and catastrophic impact of COVID-19's onset in Europe and North America in early March. We are now living through the darkest period ever in the history of commercial aviation.

"Over the last decade, we have infused entrepreneurial spirit, resilience, innovation and discipline into Air Canada's DNA and these attributes will serve us well as we navigate through this crisis. Due to disciplined long-term capital allocation we ended 2019 with $7.380 billion in unrestricted liquidity and still have access to significant unencumbered assets to support additional financings. We reacted quickly to the severity and abrupt impact of the COVID-19 pandemic, taking numerous measures, including drawing down credit lines and completing other financings to increase our liquidity, reducing our close-in capacity by more than 90 per cent, instituting a significant cost reduction and capital reduction and deferral program and implementing a temporary furlough of the majority of our unionized and management workforce, as well as management wage reductions for continuing employees.

"We have developed a plan to manage through a protracted downturn, recognizing that the pandemic and its fallout will materially impact both customer demand and our liquidity in the short and medium term. Moreover, while the duration of the pandemic and its fallout remain unknown, it is our current expectation that it will take at least three years to recover to 2019 levels of revenue and capacity. We expect that both the overall industry and our airline will be considerably smaller for some time, which will unfortunately result in significant reductions in both fleet and employee levels. While it is not possible to predict the course of the pandemic globally or indeed the changes that will be required of the airline industry, our determination is to ensure that our company is positioned to emerge in the post-COVID-19 world as strong as possible and capitalize on the opportunities that will inevitably arise," concluded Mr. Rovinescu.

Air Canada has taken or will take the following measures in response to the COVID-19 pandemic:

  • Air Canada has reduced second quarter 2020 capacity by 85 to 90 per cent when compared to 2019's second quarter. Third quarter 2020 capacity is expected to be reduced by approximately 75 per cent when compared to the third quarter of 2019. The airline will continue to dynamically adjust capacity and take other measures as required to account for health warnings, travel restrictions, border closures globally and passenger demand.
  • In March 2020, Air Canada drew down its US$600 million and $200 million revolving credit facilities for aggregate net proceeds of $1.027 billion. As at March 31, 2020, Air Canada's unrestricted liquidity amounted to $6.523 billion.
  • In April 2020, Air Canada concluded a 364-day term loan in the amount of US$600 million, secured by aircraft and spare engines, for net proceeds of $829 million. After giving effect to this facility and estimated declines in asset valuations as a result of COVID-19, Air Canada's unencumbered asset pool (excluding the value of Aeroplan and Air Canada Vacations) amounts to approximately $2.6 billion. As part of Air Canada's ongoing efforts to increase liquidity levels, additional financing arrangements continue to be pursued.
  • In late April 2020, Air Canada concluded a bridge financing of $788 million for 18 Airbus A220 aircraft which may be used for general corporate purposes and which Air Canada expects to replace with longer-term secured financing arrangements later in 2020 with the same lender.
  • In addition to cost savings associated with the significant capacity reductions, workforce reductions and other mitigation programs, Air Canada has initiated a company-wide cost reduction and capital reduction and deferral program which has now reached approximately $1.050 billion, increased from an initial target of $500 million, and continues to seek additional opportunities for cash preservation.
  • Air Canada is accelerating the retirement of 79 older aircraft from its fleet – Boeing 767, Airbus 319 and Embraer 190 aircraft, with the Embraer aircraft exiting the fleet immediately. Their retirement will simplify the airline's overall fleet, reduce its cost structure, and lower its carbon footprint.
  • Air Canada suspended share purchases under its Normal Course Issuer Bid in early March 2020 and does not intend to renew it upon its expiry.
  • To assist with global requirements of goods and personal protective equipment during the pandemic, Air Canada has operated more than 500 all-cargo international flights since March 22, 2020, and plans to operate up to 150 all-cargo flights per week in the second quarter using a combination of Boeing 787 and Boeing 777 aircraft as well as four newly converted Boeing 777 and four converted Airbus 330 aircraft where it has doubled available cargo space by removing seats from the passenger cabin.
  • Air Canada has adopted the Canada Emergency Wage Subsidy (CEWS) for most of its workforce which allowed it to return previously furloughed Canadian-based employees to its payroll for the March 15 to June 6, 2020 period.
  • Air Canada announced special benefits and accommodations for Aeroplan and Altitude members in light of COVID-19. These include pausing mileage expiration, grandfathering mileage-earned status, waiving certain change and redeposit fees, and launching new promotions so that members can earn additional Aeroplan Miles without leaving home.
  • Air Canada makes safety its first consideration in all that it does and has been continually incorporating new information about COVID-19 into its health and safety policies and procedures for travelers and employees in all workplaces, airports and onboard aircraft. This includes a requirement for customers to wear a protective face covering and measures to implement social distancing, as well as enhanced protective personal equipment for airport agents and crews, the encouragement of safe practices such as frequent hand washing and collaborating with the Canadian federal government to screen passengers to determine fitness for flying of all customers. For more details on preventative measures and policies please see: https://www.aircanada.com/covid19updates
  • To underscore its commitment to customer and employee safety, Air Canada will soon be introducing Air Canada CleanCare+. This program sets out all the health and safety measures being implemented at every touch point of the flight journey.

First Quarter Summary
Air Canada recorded a net loss of $1.049 billion or $4.00 per diluted share compared to net income of $345 million or $1.26 per diluted share in the first quarter of 2019. The first quarter of 2020 included foreign exchange losses of $711 million while the first quarter of 2019 included foreign exchange gains of $263 million. The airline reported an adjusted net loss(1)  of $392 million or $1.49 per diluted share in the first quarter of 2020 compared to adjusted net income(1)  of $17 million or $0.06 per diluted share in the first quarter of 2019. 

Net debt of $4.170 billion increased $1.329 billion from December 31, 2019, reflecting the drawdown of Air Canada's US$600 million and $200 million revolving credit facilities, partially offset by debt repayments of $509 million. The unfavourable impact of a weaker Canadian dollar, as at March 31, 2020 compared to December 31, 2019, increased foreign currency denominated debt (mainly U.S. dollars) by $692 million.  At March 31, 2020, Air Canada's leverage ratio(1)   (net debt to trailing 12-month EBITDA ratio) was 1.3 versus a leverage ratio of 0.8 at December 31, 2019.

In the first quarter of 2020, net cash flows used in operating activities amounted to $20 million, a decrease of $3,131 million from the same quarter in 2019 on a deterioration in operating results and lower cash from working capital as a result of lower advance ticket sales, reflecting the severe and abrupt impact of the COVID-19 pandemic.  Cash flows from operating activities in the first quarter of 2019 were favourably impacted by receipts amounting to $1,612 million in conjunction with Air Canada's acquisition of Aeroplan. In the first quarter of 2020, net cash inflows from financing activities amounted to $387 million, an increase of $689 million from the first quarter of 2019.

Proceeds from borrowings of $1,027 million in the first quarter of 2020 reflected the drawdown of Air Canada's US$600 million and $200 million revolving credit facilities in March 2020. Debt repayments amounted to $509 million. Negative free cash flow(1)  of $393 million deteriorated by $972 million from the first quarter of 2019, reflecting lower cash flows from operating activities due to the severe and abrupt impact of the COVID-19 pandemic, partially offset by a lower level of capital expenditures year-over-year.

Outlook and Major Assumptions
As indicated above, Air Canada expects to reduce second quarter 2020 capacity by 85 to 90 per cent when compared to 2019's second quarter. Third quarter 2020 capacity is expected to be reduced by approximately 75 per cent when compared to the third quarter of 2019.  The airline will continue to dynamically adjust capacity and take other measures as required to account for health warnings, travel restrictions, border closures globally and passenger demand.

In light of the COVID-19 pandemic and significant uncertainty around resulting travel restrictions and passenger demand, concerns about travel due to the pandemic or precautions such as physical distancing, as well as the overall economic environment and recent significant volatility in fuel prices and foreign exchange rates, Air Canada is not providing assumptions around GDP, fuel prices or foreign exchange rates. In addition, Air Canada is withdrawing all guidance, including as previously announced, all first quarter and full year 2020 guidance as well as its full year 2021 guidance (including its free cash flow guidance for the 2019-2021 period).

(1) Non-GAAP Measures
Below is a description of certain non-GAAP financial measures used by Air Canada to provide readers with additional information on its financial and operating performance. Such measures are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for, or superior to, GAAP results.  Readers are advised to review the section entitled Non-GAAP Financial Measures in Air Canada's 2019 MD&A for a further discussion of such non-GAAP measures and a reconciliation of such measures to Canadian GAAP.

  • Adjusted net income (loss) and adjusted earnings (loss) per share – diluted are used by Air Canada as a means to assess the overall financial performance of its business without the after-tax effects of foreign exchange gains or losses, net financing expense relating to employee benefits, gains or losses on financial instruments recorded at fair value, gains or losses on sale and leaseback of assets, gains or losses on debt settlements and modifications, gains or losses on disposal of assets, and special items as these items may distort the analysis of certain business trends and render comparative analysis to other airlines less meaningful.
  • EBITDA (earnings before interest, taxes, depreciation and amortization) is commonly used in the airline industry and is used by Air Canada as a means to view operating results before interest, taxes, depreciation and amortization as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets. Air Canada excludes special items from EBITDA as these items may distort the analysis of certain business trends and render comparative analysis to other airlines less meaningful.
  • "Leverage ratio" refers to net debt to trailing 12-month EBITDA leverage ratio and is commonly used in the airline industry and is used by Air Canada as a means to measure financial leverage. Leverage ratio is calculated by dividing net debt by trailing 12-month EBITDA (excluding special items). As mentioned above, Air Canada excludes special items from EBITDA results (which are used to determine leverage ratio) as these items may distort the analysis of certain business trends and render comparative analysis to other airlines less meaningful.
  • Free cash flow is commonly used in the airline industry and is used by Air Canada as an indicator of the financial strength and performance of its business, indicating the amount of cash Air Canada is able to generate from operations and after capital expenditures. Free cash flow is calculated as net cash flows from operating activities minus additions to property, equipment and intangible assets, and is net of proceeds from sale and leaseback transactions. Free cash flow in 2019 also excludes the one-time proceeds related to the Aeroplan acquisition.

Air Canada's First Quarter 2020 Consolidated Financial Statements and Notes and its First Quarter 2020 Management's Discussion and Analysis of Results of Operations and Financial Condition are available on Air Canada's website at aircanada.com and will be filed on SEDAR at www.sedar.com.

For further information on Air Canada's public disclosure file, including Air Canada's Annual Information Form dated March 30, 2020, consult SEDAR at www.sedar.com

First Quarter Analyst Conference Call
Air Canada will host its quarterly analysts' call today, May 4th, 2020 at 08:30 E.T.  Calin Rovinescu, President and Chief Executive Officer, Michael Rousseau, Deputy Chief Executive Officer and Chief Financial Officer, and Lucie Guillemette, Executive Vice President and Chief Commercial Officer, will be available for analysts' questions.  Immediately following the analysts' Q&A session, Mr. Rousseau and Pierre Houle, Managing Director and Treasurer, will be available to answer questions from term loan B lenders and holders of Air Canada's bonds. 

Media and the public may access this call on a listen-in basis.  Details are as follows:

Dial 416-340-2217 or 1-800-806-5484   Passcode:  6758405#

Live audio webcast:  https://bell.media-server.com/mmc/p/vqnnj

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https://www.newswire.ca/news-releases/air-canada-cleancare-program-introduces-new-personal-safety-and-sanitary-measures-to-give-customers-added-assurance-898264391.html

 

Air Canada CleanCare+ Program Introduces New Personal Safety and Sanitary Measures to Give Customers Added Assurance

 
 
 

Comprehensive program to provide greater peace of mind during all stages of travel

  • Mandatory pre-flight customer temperature checks, the first in the Americas 
  • More personal space in Economy Class at least until June 30, 2020
  • Personal care kits containing disinfectant and safety items
  • Electrostatic cabin spraying to reinforce aircraft grooming protocols 
  • Revised food product minimizing crew and passenger contact
  • Customer face-coverings and employee Personal Protective Equipment now mandatory

MONTREAL, May 4, 2020 /CNW/ - Air Canada today announced the launch of Air Canada CleanCare+, a comprehensive program for personal safety and enhanced aircraft grooming to provide customers greater peace of mind during all stages of travel. The new program is designed to reduce the risk of exposure to COVID-19 through such measures as mandatory pre-flight customer temperature checks in addition to required health questionnaires, seat assignment policies to allow for more personal space in Economy Class on all flights until June 30, 2020, and by providing all customers with care kits for hand cleaning and hygiene.

To supplement these individual measures, Air Canada CleanCare+ will also strengthen the airline's industry-leading cabin grooming standards with the introduction of electrostatic spraying of cabin interiors. Air Canada will additionally expand its existing aircraft grooming procedures, which already incorporate the use of hospital grade disinfectant and specialized techniques to maintain cabin cleanliness across its fleet.

"While we are eager to see the reopening of economies and the restart of commercial aviation, the safety of our customers and employees is Air Canada's core value and we aim to establish the highest standards of hygiene, cleanliness and attention to public health guidelines. We have been a leader in progressively introducing new measures in response to COVID-19, such as introducing Personal Protective Equipment for our employees and being the first North American carrier to require face coverings for customers. We are now the first airline in the Americas to administer pre-flight temperature checks system-wide. With Air Canada CleanCare+, we are introducing a comprehensive new program to give each customer added assurance for their well-being throughout all stages of their journey - and we intend to continue enhancing Air Canada CleanCare+ where we can with best practices from around the world, including increased use of screening tools, such as blood oxygen level testing, as they become available," said Calin Rovinescu, President and Chief Executive Officer of Air Canada.

"Air Canada CleanCare+ will not only provide protections at the personal level, by better monitoring our customers' fitness to fly and providing for more personal space in Economy Class, but it also sets new standards for cabin cleanliness and ensures our employees have the best tools to maintain it. Coupled with other new safety practices we implemented earlier in response to COVID-19, Air Canada CleanCare+ will provide travellers with the confidence that they can book and fly safely with Air Canada as they consider their travel plans in the current environment."

In order to ensure the safety and well-being of all customers, through the Air Canada CleanCare+ program Air Canada will introduce the following measures by May 15:

  • Customers travelling on Air Canada flights will be subject to an infra-red temperature check at all airports, the first airline in the Americas to announce such measures system-wide. The non-invasive procedure will complement the existing government-mandated health questionnaire currently completed by all travellers to determine their fitness to fly. Customers who are deemed unfit to travel will be rebooked at no cost but be required to obtain medical clearance prior to travel. 
  • To promote more personal space in Economy Class aboard its aircraft, Air Canada will automatically block the sale of adjacent seats and cap the total number of seats sold for each flight. As a result, no customer in Economy Class will be required to sit immediately adjacent to another, unless they are required to do so to assist another customer with whom they are travelling. This policy will remain in effect until at least June 30, 2020. 
  • Air Canada will begin distributing care kits containing hand sanitizers and other health items to all customers. 
  • Air Canada has already been recognized by the 2019 Skytrax World Airline Awards for Best Airline Cabin Cleanliness in North America. With the onset of COVID-19 the airline has strengthened its cabin grooming standards and will begin using state-of-the-art electrostatic sprayers to ensure a deeper clean with hospital grade disinfectant.

For more information about Air Canada CleanCare+ please see https://www.aircanada.com/cleancareplus

Prior to Air Canada CleanCare+, Air Canada had already taken a number of measures in response to COVID-19. These will remain in effect and be included in the Air Canada CleanCare+ Program:

  • Requiring customers to wear face coverings during their travel, including at check-in, during boarding and as directed while onboard its aircraft. 
  • Protocols for the use of Personal Protective Equipment by employees, including face shields and coverings, gloves and gowns by in-flight crew, along with other safety measures to encourage physical distancing, such as a revised boarding procedure and a new onboard service program. 
  • To reduce personal interactions and promote physical distancing, Air Canada has adapted its check-in procedures. This includes making available on its self-serve web and mobile check-in and airport kiosk platforms government entry requirements, the mandatory health questionnaire and other relevant information. Air Canada is also working with airports on additional protective and sanitary measures. 
  • Temporary adjustments to on-board service such as individual water bottles instead of bar service offerings and the removal of pillows and blankets. Air Canada enRoute and other non-safety literature have been removed from all seatback pockets. Air Canada partnered with a third-party company that monitors infectious diseases all over the world using Artificial Intelligence and other predictive tools and provides the company with information in real-time to ensure it is equipped to make appropriate and timely decisions. 
  • For customers who have already purchased tickets and are looking to change their travel, Air Canada has revised its booking policies so there is no change or cancellation fee for existing or new bookings. Additionally, for customers whose flights have been cancelled due to the impacts of COVID-19, they can retain the unused amount of their ticket for up to 24 months.
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Air Canada Sees Pandemic Impact Lasting at Least Three Years

News from BNN Bloomberg – link to story

Sandrine Rastello, Bloomberg News ~ 4 May 2020

Air Canada aircraft sit on the tarmac at Toronto Pearson International Airport (YYZ) in Toronto, Ontario, Canada, on Wednesday, April 8, 2020. The airport is now averaging 200 flights per day, down from 1,200 before the Covid-19 pandemic, CTV News reported. Photographer: Cole Burston/Bloomberg Air Canada aircraft sit on the tarmac at Toronto Pearson International Airport (YYZ) in Toronto, Ontario, Canada, on Wednesday, April 8, 2020. The airport is now averaging 200 flights per day, down from 1,200 before the Covid-19 pandemic, CTV News reported. Photographer: Cole Burston/Bloomberg , Bloomberg

(Bloomberg) — Air Canada said it expects the impact of the pandemic to last at least three years and predicted large job cuts as it hunkers down to survive “the darkest period ever” for the industry.

The country’s biggest airline, which on Monday reported a first-quarter loss, said it expects capacity in the third quarter to be 75% below last year’s level, from a 85-90% drop in the current quarter. It is accelerating plans to retire 79 planes and continues to look for ways to reduce costs and boost liquidity, it said.

“We expect that both the overall industry and our airline will be considerably smaller for some time, which will unfortunately result in significant reductions in both fleet and employee levels,” Chief Executive Calin Rovinescu said in a statement. He described the situation as “the darkest period ever in the history of commercial aviation.”

Air Canada’s “determination is to ensure that our company is positioned to emerge in the post-Covid-19 world as strong as possible and capitalize on the opportunities that will inevitably arise,” he said.

In contrast to major competitors around the world, Canadian airlines haven’t yet received industry-specific support from the government. So far Air Canada has said it will use a 75% wage subsidy to keep or recall most of the 36,000 employees in Canada who were furloughed.

For the first quarter, Air Canada reported a loss of C$1.05 billion ($745 million) compared to a profit of C$345 million last year. On an adjusted basis, the loss was C$392 million versus a profit of C$17 million last year.

©2020 Bloomberg L.P.

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1 hour ago, Kip Powick said:

Looks like they have their act together...   BRAVO ZULU...

 

1 hour ago, dagger said:

Mandatory pre-flight customer temperature checks, the first in the Americas 

On CBC News NetWork, a reporter mentioned that you can not get on an AC flight without "someone" taking your temperature first and the reporter asked if that was a necessary step to prevent the spread of the virus.

Dr Tam said taking a persons temperature will do nothing to indicate that an individual may have the virus, in fact the act of taking a persons temp is no longer looked upon as a useful tool in determining if an individual has the virus.....................so it will be interesting to see if AC sticks with their TAKE YOUR TEMP policy prior to boarding.🥺

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3 hours ago, Kip Powick said:

 

On CBC News NetWork, a reporter mentioned that you can not get on an AC flight without "someone" taking your temperature first and the reporter asked if that was a necessary step to prevent the spread of the virus.

Dr Tam said taking a persons temperature will do nothing to indicate that an individual may have the virus, in fact the act of taking a persons temp is no longer looked upon as a useful tool in determining if an individual has the virus.....................so it will be interesting to see if AC sticks with their TAKE YOUR TEMP policy prior to boarding.🥺

Didn't Dr. Tam also initially down play Covid 19 as did the rest of the government of Canada ??

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7 minutes ago, AIP said:

Didn't Dr. Tam also initially down play Covid 19 as did the rest of the government of Canada ??

She said travel bans don't work and they do.

She said closing the borders doesn't work and then it does.

She said wearing a mask is pointless and then it was a good idea.

So, basically, whatever Dr. Tam says I believe the exact opposite to be true and then I'm ahead of the curve!

Edited by seeker
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3 minutes ago, seeker said:

She said travel bans don't work and they do.

She said closing the borders doesn't work and then it does.

She said wearing a mask is pointless and then it was a good idea.

So, basically, whatever Dr. Tam says I believe the exact opposite to be true.

Exactly my point, thank you !!!

To me that goes along with the rest of the federal government, and will toss in the Canadian media puppets as well

Edited by AIP
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The temperature taking thing strikes me as useless.  Estimates I have seen are that 50-80% of Covid cases are missed where checking for fever is used as an attempt to diagnose.

The only medical check that should be relied upon is a test for Covid-19 itself.  Austria is planning to offer them upon arrival and it will exempt those who test negative at the airport from mandatory quarantine.  It is also offering tests on departure I guess in hopes that other countries might recognize them and exempt people arriving from Austria from quarantine at their destination.  They plan to charge 190 Euros per test.

 

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Air Canada Announces Renewal of Shareholder Rights Plan

From Air Canada

MONTREAL, May 4, 2020 /CNW Telbec/ – Air Canada (TSX: AC) (OTCQX: ACDVF) announced today that its Board of Directors has approved a shareholder rights plan to renew Air Canada’s existing rights plan. The renewed rights plan is substantially unchanged from Air Canada’s current rights plan. It is not being adopted in response to any specific proposal to acquire control of Air Canada, nor is the Board of Directors aware of any pending or threatened take-over bid for Air Canada. The renewed rights plan is similar to plans recently adopted by other Canadian companies and approved by their shareholders.

The renewed rights plan will ensure that Air Canada and its shareholders continue to receive the benefits associated with Air Canada’s current shareholder rights plan, which is due to expire at the close of business on the date immediately following Air Canada’s 2020 annual meeting of shareholders. As with the current plan, the renewed rights plans is designed to ensure that all shareholders of Air Canada are treated fairly in connection with any take-over offer or other acquisition of control of Air Canada.

The renewed rights plan will be effective at the close of business on the date immediately following its confirmation and approval by shareholders at Air Canada’s annual meeting of shareholders scheduled for June 25, 2020. If so approved, the renewed rights plan will remain in effect until the close of business on the date of Air Canada’s annual meeting of shareholders in 2023 and would be renewed in accordance with its terms for an additional period of three years (from 2023 to 2026) provided that the shareholders ratify such renewal at or prior to the annual meeting of shareholders to be held in 2023.

A complete copy of the rights plan will be filed and available on SEDAR at www.sedar.com.

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1 hour ago, rudder said:

Looks like it is loans only for large employers (sales $300MM+).

Remains to be seen if Feds are willing to do more for the airlines.

https://www.theglobeandmail.com/business/article-ottawa-vows-support-for-big-companies-hit-by-covid-19-fallout-but-says/

If you give money to large stock market listed companies, aren't you saving the shareholders? Why give money? If the government is going to be sending money to companies, they should get the corresponding equity.... if that equity gives partial control then appoint someone to the board of directors.

Lowering Landing fees, airport improvement taxes, Nav Canada fees and fuel taxes might be a better way to go about helping the various carriers.. That way they all get a similar treatment and a reduced cost environment.

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15 minutes ago, mrlupin said:

Lowering Landing fees, airport improvement taxes, Nav Canada fees and fuel taxes might be a better way to go about helping the various carriers.. That way they all get a similar treatment and a reduced cost environment.

How would lowering of the fees you mention help airlines now when they're shut down and not paying them anyway?

It seems that most carriers will need capital.  A reduction in operating costs if still needed after that could then be considered.

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These appear to be conditional non-collateralized loans. Add to that CEWS grants and it would appear that is the sum total of support emanating from YOW. Nothing that is ‘airline’ targeted.

It will be interesting to see who subscribes and what the resulting balance sheet looks like. For some, CCAA may be the preferred or inevitable outcome.

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1 hour ago, mrlupin said:

If you give money to large stock market listed companies, aren't you saving the shareholders? Why give money? If the government is going to be sending money to companies, they should get the corresponding equity.... if that equity gives partial control then appoint someone to the board of directors.

Lowering Landing fees, airport improvement taxes, Nav Canada fees and fuel taxes might be a better way to go about helping the various carriers.. That way they all get a similar treatment and a reduced cost environment.

Equity is a form of investment. In other words, you have to book it as debt incurred by government to acquire an asset. The cash goes out to the recipient at a value that may or may not reflect the future sale value of the equity.  A loan is booked differently - there is a cash outflow and an assumption of repayment. And the loan can be secured against tangible assets.  Loan guarantees are another degree of separation - the government may not ever have to cover the guarantee, and while the loan guarantee has to be accounted for until extinguished, or the loan written off, there is no cash outflow; the financial institution making the loan provides the cash. As for a loan "saving" the shareholder, adding debt adds a repayment obligation that will diminish the company's asset base by increasing its liabilities (including interest payments which show up in the annual accounts as non-operating expense). Until the debt is repaid, that means the company is that much less profitable, and that reduced profitability will be reflected in the share price until such time as the industry and carrier is in a sharp ascent economically, in which case it ought to be able to pay back the balance of the loan. .

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Air Canada temperature checks raise privacy concerns, experts say

Airline says it's an additional layer of screening it believes will make it safer to fly

Air Canada's plan to introduce mandatory temperature checks for COVID-19 to all passengers to help assure Canadians it's safe to return to the skies raises privacy concerns, legal and privacy analysts say.

Privacy experts warn it could breach privacy laws to ask for such sensitive personal information if it's unnecessary and not evidence-based.

Canada's top doctor has said temperature testing is "not effective at all" to identify people who have COVID-19. The government also doesn't require airlines to conduct this new screening measure.

Ann Cavoukian, Ontario's former information and privacy commissioner, calls Air Canada's move to become the first airline in North America to roll out this mandatory temperature checks "ridiculous."

"It's so outrageous what they're doing," said Cavoukian, who is concerned it's a quick fix — just for optics — to make people psychologically feel more comfortable getting back on planes.

"If I was commissioner, I would really clamp down hard and say to Air Canada what authorization do you have to collect personal information?"

'Concerns over where data could end up'

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"Personal information".

98.6.....98.6....98.6....99....98.6....98.6....

Hey who was 99???  I dunno, that guy......

So what personal information actually changed hands?

you are high, you are pulled aside and screened more in depth and either fly or return home.

If you think it's an infringement on you privacy, WALK.

 

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9 minutes ago, J.O. said:

36.2? You gotta stop hanging out in meat lockers! 🥶

I don’t get it?? Meat lockers. ?? Personal medical thermometers have 36.2 C as normal body temp.........  ooooh  unless you are chastising me for not putting C after the digits ..aaaaahhhha I’m slow this morning😂😂😂

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10 minutes ago, Kip Powick said:

I don’t get it?? Meat lockers. ?? Personal medical thermometers have 36.2 C as normal body temp.........  ooooh  unless you are chastising me for not putting C after the digits ..aaaaahhhha I’m slow this morning😂😂😂

And in older people, the average temperature is slightly lower than 36.2 C.

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