Guest b52er Posted March 13, 2003 Share Posted March 13, 2003 http://www.globeandmail.com/servlet/story/RTGAM.20030312.wairr312/BNStory/Business Link to comment Share on other sites More sharing options...
Guest Starman Posted March 13, 2003 Share Posted March 13, 2003 And here lies a "Catch 22". If CCAA is inevitable, there is no point in opening our contracts in order to delay it. We will have to open the contracts and take a major haircut during a CCAA process anyway. The only good reason to re-open our contracts is to AVOID CCAA, otherwise we are only giving a doomed business plan more time to weaken the company. Link to comment Share on other sites More sharing options...
Guest Stone Posted March 13, 2003 Share Posted March 13, 2003 Starman, You seem to forget the other option available should the unions not open their contracts now. Can you spell L-I-Q-U-I-D-A-T-I-O-N? The bankruptcy protection process can be skipped altogether. Are you willing to gamble? Stone Link to comment Share on other sites More sharing options...
Guest WA777 Posted March 13, 2003 Share Posted March 13, 2003 Unlike the US and just as you say liquidation is usually the outcome in Canada. Restructuring in this country is rare....You only have to look at C3000 to see what the outcome is likely to be....inspite of all reports at the time to the contrary. Link to comment Share on other sites More sharing options...
Seeker Posted March 13, 2003 Share Posted March 13, 2003 I don't want to suggest that the AC employees should take a chance but I think there is a difference between AC and C3. It's much more likely, even probable, that someone would step forward to take over the assets and continue to operate a version of AC. The reason that this wasn't done at C3 is because they represented a smaller percentage of the flying done in the country - the other airlines were able to fill in for what was lost. I think the industry would be hard pressed to fill in were AC to close up and be liquidated. Not to say that it couldn't be done but that it would take a while. Link to comment Share on other sites More sharing options...
tsgas Posted March 13, 2003 Share Posted March 13, 2003 Not as long as one would think.There are pleanty of airplanes are pilots available right now.It would even be quite easy to wet lease to get over the hump. A lot of former Eastern,Pan Am and TWA employess thought that they were too great and too large for it to ever happen to them.But hey ,guess what,life just goes on anyway. Link to comment Share on other sites More sharing options...
dagger Posted March 13, 2003 Share Posted March 13, 2003 Can you name one Canadian air carrier which has succesfully reorganized under CCAA? Excluding Canadian's 2000 reorganization which was stage-managed by AC, I can't think of one. Not City Express. Not C3. Odyessy, Worldways, any of them? Link to comment Share on other sites More sharing options...
Gumbi Posted March 13, 2003 Share Posted March 13, 2003 Unfortunately, Dagger, you are right... In Canada, Chapter 11 doesn't "really" exist as we know it in the US. Link to comment Share on other sites More sharing options...
Guest Stone Posted March 13, 2003 Share Posted March 13, 2003 Don't bet on it. There is lots of capacity to fill in the gap that Air Canada will leave. Air Canada only flew 55% of the total domestic capacity in February. At 72% load factor that means that Air Canada flew about 40% of the total passengers in Canada last month. The other airlines could pick these passengers up without too much trouble. Sure, it might take a month or two but my guess is that by summer everyone that wants to fly somewhere will be able to get a seat. Link to comment Share on other sites More sharing options...
Guest Dick Dastardly Posted March 13, 2003 Share Posted March 13, 2003 Air Toronto, operated in receivership for a year and a half before being purchased. I know what youre saying though, Air T. was very small and was a division of Soundair when it all went down, Odyssey and all. Link to comment Share on other sites More sharing options...
Guest Maritimer Posted March 14, 2003 Share Posted March 14, 2003 Air Atlantic, only to succumb to the code share issue. But it did emerge. FYI Link to comment Share on other sites More sharing options...
sustainable Posted March 14, 2003 Share Posted March 14, 2003 DD Are you a Commuter Express type? Sus Link to comment Share on other sites More sharing options...
Stickle Posted March 14, 2003 Share Posted March 14, 2003 Interesting figures Stone. If these are in fact correct why do we keep hearing how AC has 80% of the domestic capacity. Maybe it's about time that the government removed the handcuffs then. Link to comment Share on other sites More sharing options...
Vsplat Posted March 14, 2003 Share Posted March 14, 2003 Boy, there's a name I haven't heard in a while. Come to think of it, after the Metros, did anyone hear anything for a while? Link to comment Share on other sites More sharing options...
Guest Stone Posted March 14, 2003 Share Posted March 14, 2003 According to Milton's conference call with the analysts and media after releasing the 4th quarter results, he said that in February Air Canada only had 55% of the domestic capacity. This was in response to those critics who suggested that Air Canada held a monopoly. Link to comment Share on other sites More sharing options...
Guest Dick Dastardly Posted March 14, 2003 Share Posted March 14, 2003 Yes...you? Remember the logo on the tail? The little man running with his briefcase....we were always late. Link to comment Share on other sites More sharing options...
Guest FL410 Posted March 14, 2003 Share Posted March 14, 2003 Fact: Jazz pilots will operate ANY size of airplane cheaper than ACPA Jazz F/A's already do the same job at a fraction of what the mainline does. Jazz counter staff work for less. Jazz does everything cheaper where it doesn't HAVE to rely on imposed mainline contracts. Dilema: How to get the mainline costs in line with JAZZ. Answer to come soon. Link to comment Share on other sites More sharing options...
sustainable Posted March 14, 2003 Share Posted March 14, 2003 Si, although I can't say it was the high point of my career. It was marginally better than another operator from yon end of Kilo. I was in my, "must have turbine time" phase. Unfortunately, that didn't coincide with my, "must make enough to eat" phase. I met some great guys there but the place had its fair share of rare birds (the kind that eat their young) too. It was a well thought out operation as long as one acknowleges that the plan was to piss off every individual in the Ohio Valley, Michigan and Western Pennsylvania just once. Remember the looks on the faces of the businesspersons who, after a lengthy delay in the US preclearance lounge with numerous imbibibles, realized that they were about to be shoehorned into a cigar tube for an hour and a half flight with no lavatory. That was cruel. I'm glad you survived. Click-Clacks Link to comment Share on other sites More sharing options...
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