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When Did AC Bail Out CO  
User currently offlineKrisYYZ From Canada, joined Nov 2004, 1593 posts, RR: 0
Posted (8 years 5 months 1 week 3 days 1 hour ago) and read 2281 times:

I was reading the article about Air Canada in ATW when I came across this:
But ACE Aviation Chairman and CEO Robert Milton isn't just selling, he's buying as well. Taking a leaf from the playbook of Hollis Harris, the man who brought him to Air Canada in the early 1990s and who made a fortune for AC by bailing out Continental Airlines, Milton has bet on the reorganized US Airways with a ground-floor investment of C$87 million for a 7% holding that was valued at C$193 million in late February-Air Transport World Online 04/2006

I take it Hollis Harris was AC CEO in the 90s, but how exactly did AC help out CO? Does AC still have any investment in CO? Can anybody see AC expanding its financial base or investments into the troubled USA airlines besides US?

Thanks, KrisYYZ

5 replies: All unread, jump to last
 
User currently offlineDutchjet From Netherlands, joined Oct 2000, 7864 posts, RR: 57
Reply 1, posted (8 years 5 months 1 week 3 days 1 hour ago) and read 2247 times:

The quote is really not written correctly - AC did not bail out CO. AC was one of the investors that recapitalized CO when it emerged from its second bankruptcy. In turn for that investment, AC held a good number of shares in CO which they sold at a very good price once it was clear that CO was going to make it on its own. It was a good investment for AC.

Interestingly, SAS made a big investment in CO in connection with CO's first bankruptcy proceeding (which is the main reason why SAS moved its NYC ops from JFK to EWR, SAS wanted to work more closely with CO) - that did not work out so well and SAS's interests in CO were wiped out during the second bankruptcy.


User currently offlineUSPIT10L From United States of America, joined Mar 2006, 3295 posts, RR: 7
Reply 2, posted (8 years 5 months 1 week 3 days ago) and read 2198 times:

Quoting KrisYYZ (Thread starter):
I take it Hollis Harris was AC CEO in the 90s,

Hollis Harris came from DL in 1991 to take over CO in their restructuring and first attempt at revitalization. He failed miserably, mostly because CO was in such debt and disrepair. I don't believe he ever ran AC. He used to be head of what is now ACS (Airport Customer Service) at DL for many years.



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User currently offlineCP744 From Canada, joined Jul 2000, 200 posts, RR: 0
Reply 3, posted (8 years 5 months 1 week 3 days ago) and read 2150 times:

Harris ran AC from about '93 to '96, and that's where Milton came from. They knew each other from Eagle Aviation.

User currently offlineWesternA318 From United States of America, joined Oct 2004, 5673 posts, RR: 24
Reply 4, posted (8 years 5 months 1 week 2 days 22 hours ago) and read 2060 times:

Quoting Dutchjet (Reply 1):
Interestingly, SAS made a big investment in CO in connection with CO's first bankruptcy proceeding

They took over about half of Frank Lorenzo's CO holdings at the time, I believe GE and Dave Bonderman got the rest. I'll have to dig out the papers from the era.



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User currently offlineUSPIT10L From United States of America, joined Mar 2006, 3295 posts, RR: 7
Reply 5, posted (8 years 5 months 1 week 2 days 21 hours ago) and read 1999 times:

Quoting CP744 (Reply 3):

Thanks. Didn't know that.



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