Air Transat Layoffs


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3 hours ago, mrlupin said:

70% of the workforce or about 3600 to be on Layoff status.

https://www.ctvnews.ca/business/air-transat-flight-crews-laid-off-last-flight-april-1-1.4864001

 

I would think "phone staff" might be going to layoff as well.

However, I  only waited about 5 minutes and got an AT Vacations Rep on the phone as I wanted to ascertain if ATVac was going to reimburse me or give me a credit for a weeks lost vacation.... 

I was told to submit an email with all info

I did.

Within one day I received a "boiler-plate" reply saying it "might" be up to two months before I get a reply and/or resolution..

Gonna be interesting if AT merges with AC  prior to ever hearing from ATVac again....?

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Irrespective of current conditions, the concerns that the Competition Bureau have raised are valid and coincide with what the industry observers had anticipated. After the crisis is over, it does present major issues with competition over concerned routes. So either Air Canada will have to divest certain routes and airport gates and such, or possibly use this report as an exit strategy graciously. While it does afford Air Canada some options, it cannot expect to have carte blanche due to current crisis, as one would hope it will pass.

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38 minutes ago, MD2 said:

Irrespective of current conditions, the concerns that the Competition Bureau have raised are valid and coincide with what the industry observers had anticipated. After the crisis is over, it does present major issues with competition over concerned routes. So either Air Canada will have to divest certain routes and airport gates and such, or possibly use this report as an exit strategy graciously. While it does afford Air Canada some options, it cannot expect to have carte blanche due to current crisis, as one would hope it will pass.

Are you sure and if so why?  What about the routes / gates that WestJet is shutting down  and of  course their competition with "real ' low cost Canadian Airlines?

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3 hours ago, seeker said:

The fix is in.

Air Transat was in trouble before the pandemic.  Unless they have a Plan B that we haven't heard about I hope for the sake of jobs there that the acquisition proceeds.

Edited by FA@AC
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Irrespective of current conditions...

Interesting choice of words. It seems the CTA would disagree. In recognition of the financial implications, they are not forcing the airlines to provide refunds to customers whose flights were cancelled due to COVID-19. That decision is definitely respective of current conditions and as much as it’s pissing off thousands of folks who will get vouchers instead, it’s also the best call for the moment. Forcing a carrier to pay out millions of dollars in refunds at this vulnerable time could be the straw that breaks more than one camel’s back.

IMHO, this won’t be the last decision out of Ottawa that takes into account the new realities of the post-COVID world, especially if it protects a couple thousand good paying jobs.

Time will tell. This and $1.50 will get you a medium double-double and not much more (once things open up again).

https://globalnews.ca/news/6736735/coronavirus-airlines-refunds-credit/

Edited by J.O.
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Clearly the two have nothing to do with each other.

It is one thing to allow carriers (ALL carriers) to delay refunds or issue credits instead to weather this financial storm, it is quite another to circumvent competition concerns as raised by its watchdog, possibly even expect every Canadian, through their taxes, bankroll one carrier's aspiration (Air Canada) for more dominance in the market. The Competition Bureau has simply shown it is not in the best interest of Canadians for Air Canada to take over Transat as proposed. This was as previously proposed with its own money, it makes it even less appealing for consumers to do it on government hand-out!! I'm sure anyone unbiased can see the difference.

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18 minutes ago, MD2 said:

The Competition Bureau has simply shown it is not in the best interest of Canadians for Air Canada to take over Transat as proposed. This was as previously proposed with its own money, it makes it even less appealing for consumers to do it on government hand-out!! I'm sure anyone unbiased can see the difference.

And you’re unbiased, are you?

i don’t think that letting Air Transat fail, as is likely to happen unless the takeover by AC proceeds is an attractive option.

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Report of the Commissioner of Competition - Transat reiterates its confidence in the transaction with Air Canada, which is currently undergoing a public interest assessment by the federal government


NEWS PROVIDED BY

Transat A.T. Inc. 

Mar 27, 2020, 17:38 ET

 

  •  

"We must look at the Competition Bureau report with a bit of perspective, and not draw any direct conclusions from it with regard to the final decision."

 Jean-Marc Eustache

MONTREAL, March 27, 2020 /CNW Telbec/ - Transat A.T. Inc. has taken note of the Competition Bureau's advisory report, made public today. This report does not affect the company's confidence in the transaction with Air Canada, which will produce many long-term benefits for all stakeholders.

With the transaction now the subject of a public interest assessment being conducted by Transport Canada, the report of the Commissioner of Competition will be one of the elements of a broader analysis that will include stakeholders' proposals for fostering competition, the findings of the public consultations, and an analysis of the transaction's positive impacts on travellers, employment, tourism and the international positioning of Canadian businesses. The Transport Canada assessment will be submitted to Honourable Marc Garneau, Transport Minister, in early May.

"We must look at the Competition Bureau report with a bit of perspective, and not draw any direct conclusions from it with regard to the final decision," says Transat President and Chief Executive Officer Jean-Marc Eustache. "The Commissioner's role is limited to studying the impacts on competition in the marketplace; in other words, identifying potential difficulties, without necessarily contemplating what solutions or mitigation measures might be implemented, and without taking the public interest more broadly into account. Transport Canada's assessment will provide a more comprehensive overview of the nuts and bolts of the transaction and of all the benefits for the Canadian public and economy."  

Mr. Eustache concludes: "Particularly against the background of the COVID-19 crisis, our transaction requires a broad perspective that takes into account the company's future, the protection of jobs, the advantages for travellers and the interests of all our other stakeholders, including our investors, our partners, and the communities where we operate."

Transat had very little time to study or respond to the advisory report's conclusions and did not have access to the documents or studies on which it is based, nor even to the identity of all of their authors. Additionally, the COVID-19 pandemic that is currently having a devastating impact on the operations of the world's airlines is calling into question the relevance of any analysis conducted prior to its outbreak, as the Bureau itself points out.

Nevertheless, Transat wishes to reiterate that the international air transportation market is increasingly integrated and highly competitive and experiences constant capacity fluctuations that cause price fluctuations. The new company envisioned by the merger would remain a modest player in this market dominated by large international airlines that also operate on routes between Europe and Canada. In the context of the rebuilding of the market following the current crisis, the existence of such a player in Quebec and Canada would be a major asset.

Transat also believes that the report takes inadequate account of the prominence of the existing players in their home markets, the market's receptiveness to newly arriving players and the role of indirect and multimodal routes, particularly where leisure travel is concerned.

The merger of Transat and Air Canada, two complementary travel companies, will improve customers' choices and opportunities. Travellers will be benefit from access to new destinations, more flight connections and frequencies, reduced connection times and a greater selection of holiday travel options. This merger will produce a company that is more efficient and competitive internationally, for the benefit of all Canadians.

If the required regulatory approvals are obtained and the conditions fulfilled, the transaction is expected to close in the second quarter of the 2020 calendar year.

On March 18, during the COVID-19 pandemic, Transat announced the gradual suspension of all of its flights until April 30. Last Monday, the company confirmed that it has temporarily laid off 70% of its employees in the past week.

SOURCE Transat A.T. Inc.

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36 minutes ago, MD2 said:

In other words it is not in the best interest of Canadians for Air Canada to take over Transat as proposed with its own money, let alone more government hand-out!! 

I agree.  I think everyone agrees.  
 

But that isn’t the real question.  Consolidation and failures were on the horizon in the leisure industry before this current crisis.  Now the process has been accelerated.  Possibly hyper speed accelerated.

Quite frankly I have only seen one airline restart after shutdown.  It was WestJet in its infancy with very little capital overhead. How is any airline currently shut down going to have any kind of future bookings?  

The pertinent question is what will the future landscape of leisure travel in Canada look like? 

How can that future best be managed by government from a competitive point of view? 

Since airline failures are equivalent to consolidation, what realistic options do you think are out there to promote competition?

I see two options.

1) Consolidation through failure.  Or Consolidation through merger.  

or

2) Massive government bailouts for airlines like the US.

 

 


 

 

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15 hours ago, FA@AC said:

Air Transat was in trouble before the pandemic.  Unless they have a Plan B that we haven't heard about I hope for the sake of jobs there that the acquisition proceeds.

For the sake of jobs?  I appreciate the sentiment.  But the industry will only support the amount of jobs the industry needs to operate.  A merger won’t save jobs.  It will simply redistribute who gets furloughed. 

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 A merger won’t save jobs.  It will simply redistribute who gets furloughed. 

Partly true....Lets say any company has 5000 employees and they fold........5000 people are out of work
 
Lets say a company has 5000 employees and they merge......seniority trumps, (sometimes), so each of the two  company's   furlough 1500 people.......3000 people out of work...2000 people still have jobs.(saved).
 
In a perfect world...?
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No.  The market will support the jobs it needs.  No more.  No less.  Absent a merger in your example company A would need to hire 2000.  In the end there is no difference except those who take the brunt of the failure/ consolidation.

Yesterday the Transat merger Was about job consolidations into job vacancies that had not yet been filled.  

Today a merger will be about distribution of those furloughed.

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Before COVID-19, there seemed to be a consensus that 1+1=2.x (some number greater than 2).

Now, it is more like the Titanic is sinking and they have just figured out that life boat space is finite and well below the amount of passengers on board.

That is reality.

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.

Porter Airlines to get $135 million in funding from federal government after coronavirus grounds flights

Porter halted all of its operations on March 20 with plans to keep its planes grounded until June 1

Sat Mar 28, 2020 -  Financial Post

The federal government will provide Toronto-based Porter Airlines with $135 million in commercial financing during the coronavirus pandemic that has grounded most air traffic and strained the global air travel industry.

Porter Airlines told the Financial Post Friday that it arranged commercial financing with Export Development Canada secured by a portion of its fleet of 29 aircraft.

The regional carrier, which operates from an island in Toronto Harbour, owns all of its aircraft and only has debt on three, according to an emailed statement.

“With this strong balance sheet, we secured a loan similar to other arrangements previously made with EDC,” an airlines spokesperson said.

“Many companies are making financially prudent plans in the current environment and this additional capital provides flexibility for our business. Porter has the financial resources to sustain the airline through this public health crisis.”

Porter halted all of its operations on March 20 with plans to keep its planes grounded until June 1. It waived change and cancellation fees for customers who had to make last-minute travel arrangements.

At the time, chief executive Michael Deluce called the speed of COVID-19 related developments “shocking.”

“It is having an unprecedented impact around the globe on businesses, economies and people,” Deluce said in a statement, adding that Porter supports government efforts to restrict the spread of disease.

Over the past few weeks, the federal government has met with representatives from Canada’s airline industry, including calls between Prime Minister Justin Trudeau and the CEOs of Air Canada and WestJet Airlines Ltd., the country’s two largest carriers.

The industry has called for government support as demand for air travel plummets to near zero thanks to travel restrictions in place to quell the spread of the virus. It’s not yet clear exactly how Ottawa will support the wider industry, but requests for help got louder after the government banned non-essential travel to the United States.

Canada’s major carriers have already laid off thousands of employees. WestJet laid off 6,900 employees, Air Canada 5,149 and Transat A.T. 3,600 people.

The International Air Transport Association estimates that global airlines will collectively lose more than $252 billion in revenue due to the drastic drop in travel.

.

 

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2 hours ago, FA@AC said:

i don’t think that letting Air Transat fail, as is likely to happen unless the takeover by AC proceeds is an attractive option.

For whom?

Consumers can't tell Air Canada what to do with its money, but they certainly can dictate the conditions under which it can make acquisitions when it affects competition, as they certainly can also, expect it to do with its own money, not taxpayers.  That is all.

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3 hours ago, Turbofan said:

I agree.  I think everyone agrees.  
...

I see two options.

1) Consolidation through failure.  Or Consolidation through merger.  

or

2) Massive government bailouts for airlines like the US.

Not everyone seems to agree though. Some seem to like taxpayers paying for Air Canada's ambitions, which the Competition Bureau says is not good for consumers!

As for the second part, choice 2 is the easy way out and clearly preferred by those who are less prepared financially, but not really a long term solution; neither is it fair for the government to bail out Air Canada or Transat in perpetuity, as it did Canadian. People talk about saving jobs with emotions, however if the market cannot support those jobs, neither should the government. Tests like this separate healthy companies from unhealthy ones naturally which is good for the industry.

For the Liberal government to turn a blind eye to the recommendations of the Competition Bureau and allow this merger to go on without divesture, even worse yet, fund it in any shape or form in the name of saving jobs or being nice to Quebec will clearly tilt the playing field in favor of Air Canada, afford Canadians fewer choices at higher costs, and make for a unhealthy long recovery of the industry in general. It also puts all other airlines that are trying to weather this storm responsibly, including Porter, SunWing, and WestJet at a disadvantage. If Air Canada is to proceed, the federal government will find it increasingly difficult to bankroll it while other airlines are struggling to survive.

Although Air Canada likes the lower CASM at Transat and seems to have positioned it as its new LCC, it remains to be seen how much support this merger garners now even within its own labour groups. Some recall the Canadian merger and how the ensuing job losses came mainly at AC side. These are the reasons why I believe the deal will not happen and Air Canada will use this report to walk away or bargain more with Transat.

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3 hours ago, Turbofan said:

For the sake of jobs?  I appreciate the sentiment.  But the industry will only support the amount of jobs the industry needs to operate.  A merger won’t save jobs.  It will simply redistribute who gets furloughed. 

I agree, but furlough with eventual recall is a better outcome than outright loss of jobs where those affected have to start all over again elsewhere.

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28 minutes ago, FA@AC said:

I agree, but furlough with eventual recall is a better outcome than outright loss of jobs where those affected have to start all over again elsewhere.

Again I understand the sentiment.  This is a very tough situation.  No one wants to see layoffs or failures.

It’s not like AC employees aren’t already taking big hits.  But the underlying message I am hearing from you is that you would prefer to see the consequences of this crisis on Tansat employees, transferred to junior AC employees rather than have Transat fail.

Is that what you are saying?

 

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