Kip Powick Posted April 11, 2003 Share Posted April 11, 2003 Downsizing for Tango..ZIP expands http://www.globeandmail.com/servlet/story/RTGAM.20030411.rtang0411/BNStory/Business Link to comment Share on other sites More sharing options...
Guest b52er Posted April 11, 2003 Share Posted April 11, 2003 Interesting in that Jet Blue is considering CYYZ and CYHM. Interesting in that the founder of Jet Blue was also one of the creators of WestJet. Intersting that WJ will be forging an alliance with another powerful successful airline in the US? Even more trouble for AC's brands on the horizon if this occurs. Remember, an airline does not need to codeshare to have connectability with another carrier, only a link on ones website so that the consumer can book directly from one airlines website to point "A" and clink on a link to the other carriers website to conclude his/her travel to point "B". Any takers? Link to comment Share on other sites More sharing options...
Guest George Posted April 11, 2003 Share Posted April 11, 2003 Go back to bed Clive! Link to comment Share on other sites More sharing options...
Guest Max Continuous Posted April 11, 2003 Share Posted April 11, 2003 http://www.cbc.ca/stories/2003/04/11/airlines_030411 Link to comment Share on other sites More sharing options...
Guest sfb Posted April 11, 2003 Share Posted April 11, 2003 Paul Vieira and Claudia Cattaneo, with files from Barry Critchley Financial Post Friday, April 11, 2003 CREDIT: Glenn Lowson, National Post TORONTO and CALGARY - Air Canada and Onex Corp., already renegotiating the sale of a stake in the Aeroplan frequent-flyer program, are said to be in talks for a deal involving the airline's ground handling services, sources say. Talks were taking place before the Montreal airline filed for bankruptcy protection, sources say, and they have continued. "Onex is very interested," said a source close to Air Canada. "Onex is in the process of doing their usual thorough due diligence into the possibilities of ground handling as a separate unit." A second source added the talks have involved a scenario that would see Onex emerge as a subcontractor that would run the operation, which employs nearly 8,500 people. The payroll for the affected workers would move from Air Canada's books to Onex's. Phone calls to Onex executives and lawyers representing the Toronto company were not returned. Laura Cooke, a spokeswoman for the airline, said news of another Onex-Air Canada is "in the realm of rumour. It is highly speculative. "All we've said to date is that we plan to proceed [with establishing a ground handling services division], but we have not made any announcement about what that organization will look like." Onex may not be the only firm eyeing the Air Canada division. "I have been approached" to participate in a possible bid, said one well-placed Bay Street player who specializes in private equity deals. However, the investor added putting a value on the business is, at the present time, "complicated" because of the absence of certainty surrounding the future health of the industry, particularly airline traffic. Air Canada announced last February its intention to sell a "significant stake" in its ground handling services unit, which would become a stand-alone subsidiary in a new corporate structure. The company, in a statement at the time of its filing under the Companies Creditors' Arrangement Act, said it has "commenced preliminary discussions" with several potential investors on this front. Air Canada's ground handling operations provide customer check-in, ticketing, baggage handling, ground equipment service and aircraft ramp handling, and employ workers in Canada, the United States, Europe and Asia. The airline is also looking at selling stakes in other assets, such as its technical services division and its Jazz regional airline. However, sources add there is an obstacle to completing a ground handling-services deal with Onex -- organized labour. Most of the workers in ground handling are represented by the International Association of Machinists and Aerospace Workers (IAMAW), and Onex may not be keen to take on the workforce unless they agree to concessions. "Onex couldn't do deal without getting unions onside," said a lawyer representing one of the parties in the CCAA proceedings. Representatives for IAMAW, as well as other unions, said they were unaware of any talks regarding a deal for the ground handling unit. Onex is familiar with Air Canada's operations, as the company, run by financier Gerry Schwartz, unsuccessfully tried to take over the carrier in late 1990s. But since then, Onex and Air Canada have mended fences, as seen by the deal struck last January involving Aeroplan. Onex had agreed to pay $245-million for a 35% stake in the frequent-flyer program. That deal was later terminated when Air Canada filed for creditor protection. But the two parties have signed a letter of intent, under which Onex and Air Canada have 30 days to reach another deal. The sale is scheduled to close on the date Air Canada's restructuring plan is implemented, following creditor and court approval. There is also doubt whether Onex and the airline can strike a deal now that Air Canada is under creditor protection. "I am not sure whether or not the CCAA proceedings may have made a deal more difficult," said one legal source. "It would involve, at the end of the day, the contracting out by Air Canada of ground services to a third-party contractor." Air Canada has also advised securities regulators that its annual meeting, originally scheduled for May 13, has been postponed until further notice. pvieira@nationalpost.com © Copyright 2003 National Post Link to comment Share on other sites More sharing options...
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