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Topic: AC Sells 35% Of Its US Stake
Username: Sebring
Posted 2006-04-10 23:28:23 and read 6143 times.

http://www.newswire.ca/en/releases/archive/April2006/10/c3635.html

Topic: RE: AC Sells 35% Of Its US Stake
Username: BDL2DCA
Posted 2006-04-10 23:38:37 and read 6114 times.

Wow, ACE made a pretty penny on those shares. I bet there are some champagne corks popping in Montreal with that sale.

Topic: RE: AC Sells 35% Of Its US Stake
Username: Airwave
Posted 2006-04-11 00:09:18 and read 6002 times.

Interesting news. Glad to hear AC made a tidy little profit for themselves.

Quote:
Following completion of the transaction which is expected to occur on April 13, 2006, and in accordance with the terms of the original Stockholders Agreement entered into between ACE and US Airways, ACE Chairman, President and CEO Robert Milton will resign from the Board of Directors of US Airways in the near future.

Any indications or reports on who will replace him? Or will US use this opportunity to shrink the board a bit?

Airwave  eyebrow 

Topic: RE: AC Sells 35% Of Its US Stake
Username: AirCanada014
Posted 2006-04-11 01:16:09 and read 5872 times.

Thats awesome for AC.. I hope they can sell more later for a good profit just like they did when they bought CO and sold their shares for nice profit return.

Topic: RE: AC Sells 35% Of Its US Stake
Username: FlyDreamliner
Posted 2006-04-11 01:43:09 and read 5811 times.

Congrats to AC! I wish AC would all together buy out an American carrier, or form their own American presence. They are the best north american airline i've ever flown (CO gets honorable mention though)

Topic: RE: AC Sells 35% Of Its US Stake
Username: AC787
Posted 2006-04-11 02:43:35 and read 5676 times.

Thats quite impressive, selling 35% of there stake and recovering 90% of there initial investment. I can only hope to be so lucky when i start investing seriously.

AC787

Topic: RE: AC Sells 35% Of Its US Stake
Username: Airwave
Posted 2006-04-11 03:21:16 and read 5570 times.

Quoting AC787 (Reply 5):
Thats quite impressive, selling 35% of there stake and recovering 90% of there initial investment. I can only hope to be so lucky when i start investing seriously.

 checkmark  Wouldn't that be nice? The trick is to not turn around and lose it all before it clears, lol.

So I guess AC is just gonna hang on to the rest of that stake for a while, then? Here's hoping LCC doesn't bomb any time soon. I personally would *hate* to see Americans screw over Canada(ians) like that.

Airwave  eyebrow 

Topic: RE: AC Sells 35% Of Its US Stake
Username: AirCanada014
Posted 2006-04-11 03:26:46 and read 5552 times.

I would like to see AC buy CO again and buy UA. Thats twice so far for AC.
Can you imagine if AC buys CO again? You know would be interesting if AC buys Boeing company? what do you think about it. I know it won't happen but can you imagine?.

Topic: RE: AC Sells 35% Of Its US Stake
Username: Olympus69
Posted 2006-04-11 05:33:40 and read 5333 times.

Quoting AirCanada014 (Reply 3):
Thats awesome for AC.. I hope they can sell more later for a good profit just like they did when they bought CO and sold their shares for nice profit return.

As I recall, AC had a fair sized chunk of CO - something like 20% wasn't it?

Topic: RE: AC Sells 35% Of Its US Stake
Username: AC7E7
Posted 2006-04-11 06:02:30 and read 5288 times.

Quoting Olympus69 (Reply 8):
As I recall, AC had a fair sized chunk of CO - something like 20% wasn't it?

I believe it was 24%

Quoting AirCanada014 (Reply 7):
I would like to see AC buy CO again and buy UA.

Don't think CO is the right fit for ACE right now, but UA is absolutely not of any interest. In my opinion, ACE invested in US Airways not only because of the maint. contract, but because UA's potential demise would have been a setback for Star Alliance in North America. US Airways is in far better shape then UA is today, even after 3 years in chap 11.

I still wish UA the best, however their recovery plan is based on $50 oil, not to mention the excessive amount of debt that still remains on their books. That airline is one disaster away from another chapter 11 filing. After three years of court protection, I would have expected much less debt and a realistic outlook on oil prices. That's the problem when you get to be that big an airline... it is more difficult to cut the fat then it is for a smaller airline... or any company for that matter.

Topic: RE: AC Sells 35% Of Its US Stake
Username: CRJ900
Posted 2006-04-11 12:58:30 and read 5137 times.

Quoting AC7E7 (Reply 9):
I still wish UA the best, however their recovery plan is based on $50 oil, not to mention the excessive amount of debt that still remains on their books.

Seriously? That's a bit naive, isn't it? I find US carriers to have a slightly warped view on things... "workers' unions are our worst enemy but the oil companies are our friends"...

Oil companies are not doing charity work, they are in it for the money. With demand growing at breakneck speed and supply becoming more scarce, the oil companies will charge top dollar and they are now raking in enormous amounts of money. They're laughing all the way to the bank today and have every intention of doing so tomorrow as well... oil prices will remain high until a serious competitor emerges (bio fuel, water, whatever).

Airlines should realistically base fuel prices on $75-80/barrel.

Topic: RE: AC Sells 35% Of Its US Stake
Username: SLCUT2777
Posted 2006-04-11 16:40:05 and read 4701 times.

Quoting AirCanada014 (Reply 3):
Thats awesome for AC.. I hope they can sell more later for a good profit just like they did when they bought CO and sold their shares for nice profit return.

Perhaps DL is their next target when they emerge late this year or early next! If the pilots don't screw things up first!

Topic: RE: AC Sells 35% Of Its US Stake
Username: AC7E7
Posted 2006-04-11 17:08:21 and read 4543 times.

Quoting CRJ900 (Reply 10):
Oil companies are not doing charity work, they are in it for the money. With demand growing at breakneck speed and supply becoming more scarce, the oil companies will charge top dollar and they are now raking in enormous amounts of money.

Of course they are in it for the money, but oil is a traded commodity. As long as oil prices remain high on the markets, everybody will pay more for it. It has nothing to do with oil companies being cozy with the airlines. Oil is a huge expense for carriers.

Quoting CRJ900 (Reply 10):
Airlines should realistically base fuel prices on $75-80/barrel.

Agreed, UA should have based their recovery plan on such prices....but then they never would have exited chapter 11 because there is no way for them to make money when oil costs that much.

Topic: RE: AC Sells 35% Of Its US Stake
Username: Ouboy79
Posted 2006-04-11 17:49:08 and read 4276 times.

Quoting SLCUT2777 (Reply 11):
Perhaps DL is their next target when they emerge late this year or early next! If the pilots don't screw things up first!

DL has no value to ACE, except the fact they compete with LCC and UAL. I'm sure ACE (and the rest of Star) would enjoy seeing DL flop.

Topic: RE: AC Sells 35% Of Its US Stake
Username: AC7E7
Posted 2006-04-11 18:09:13 and read 4130 times.

Quoting Ouboy79 (Reply 13):
I'm sure ACE (and the rest of Star) would enjoy seeing DL flop.

They may be competitors, but ACTS has a major maintenance contract with DL. If DL entered chap 7, ACE's ability to spin off ACTS at its full value would be greatly reduced.

Topic: RE: AC Sells 35% Of Its US Stake
Username: SLCUT2777
Posted 2006-04-11 19:00:13 and read 3868 times.

Quoting AC7E7 (Reply 14):
They may be competitors, but ACTS has a major maintenance contract with DL. If DL entered chap 7, ACE's ability to spin off ACTS at its full value would be greatly reduced.

My point exactly. That said however I don't think AC would mind seeing the demise of SkyTeam and the ability to nab a few orphaned carriers, DL in particular if they are one of the survivors.

Topic: RE: AC Sells 35% Of Its US Stake
Username: PA110
Posted 2006-04-11 19:15:37 and read 3785 times.

Quoting FlyDreamliner (Reply 4):
Congrats to AC! I wish AC would all together buy out an American carrier, or form their own American presence. They are the best north american airline i've ever flown (CO gets honorable mention though)

Oh great, that's just what U.S. carriers need! AC holds a virtual monopoly and still can't manage to turn a profit.  sarcastic 

Topic: RE: AC Sells 35% Of Its US Stake
Username: Olympus69
Posted 2006-04-11 19:39:23 and read 3692 times.

Quoting PA110 (Reply 16):
Oh great, that's just what U.S. carriers need! AC holds a virtual monopoly and still can't manage to turn a profit.

Not true. AC had a net profit of C$258 million for 2005.

Topic: RE: AC Sells 35% Of Its US Stake
Username: Accargo
Posted 2006-04-11 19:50:00 and read 3654 times.

Quoting Olympus69 (Reply 17):
Not true. AC had a net profit of C$258 million for 2005.

Save your breath, there will always be those that think they know it all when in fact they haven't got a clue.

Topic: RE: AC Sells 35% Of Its US Stake
Username: AC7E7
Posted 2006-04-11 20:07:15 and read 3568 times.

Quoting SLCUT2777 (Reply 15):
That said however I don't think AC would mind seeing the demise of SkyTeam and the ability to nab a few orphaned carriers, DL in particular if they are one of the survivors.

Star already has US and UA representing them in the U.S. Unless UA went under, I doubt Star Alliance is would add another carrier.

Topic: RE: AC Sells 35% Of Its US Stake
Username: HanginOut
Posted 2006-04-11 22:45:53 and read 3024 times.

Quoting AC7E7 (Reply 19):
Star already has US and UA representing them in the U.S. Unless UA went under, I doubt Star Alliance is would add another carrier.

You're right, but it would be nice to see CO in Star Alliance. Other than the scenario you described, the only way for them to join would be if they merged with UA or US (I'd put my money on UA).

Topic: RE: AC Sells 35% Of Its US Stake
Username: YOW
Posted 2006-04-12 16:22:49 and read 2676 times.

Quoting AC7E7 (Reply 19):
Star already has US and UA representing them in the U.S. Unless UA went under, I doubt Star Alliance is would add another carrier.



Quoting HanginOut (Reply 20):
You're right, but it would be nice to see CO in Star Alliance. Other than the scenario you described, the only way for them to join would be if they merged with UA or US (I'd put my money on UA).

The Star members' constitution states a max. of 2 airlines per country are permitted to join, so unless US or UA go Ch.7 you won't be seeing CO in Star, plus, why would CO want to leave Skyteam?

Back in the early days of alliances AC & CO were quite cozy.

Topic: RE: AC Sells 35% Of Its US Stake
Username: LH477
Posted 2006-04-13 02:00:00 and read 2580 times.

Nice to see AC making a tidy profit. They are flush with $$$, I can imagine more of this ownership stakes. One airline in this discussion not being metioned is NW.

Topic: RE: AC Sells 35% Of Its US Stake
Username: Hiflyer
Posted 2006-04-13 02:55:36 and read 2550 times.

Possibly...just possibly...you may be seeing less of an investment in US by AC due to US may not remain in Star long term....and I think it is more US believing they can do better than staying as the #2 united states carrier in Star.

Topic: RE: AC Sells 35% Of Its US Stake
Username: AC7E7
Posted 2006-04-13 17:23:54 and read 2431 times.

Quoting Hiflyer (Reply 23):
Possibly...just possibly...you may be seeing less of an investment in US by AC due to US may not remain in Star long term....and I think it is more US believing they can do better than staying as the #2 united states carrier in Star.

I doubt it. Where else would they go? US Airways needs strong partners if it is going to survive, especially in the U.S. market. TWA tried to remain on its own and that didn't get them very far.

I think we will see ACE and US Airways actually get closer over time, despite ACE's sale of LCC shares.


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