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C3 Bought Royal!  
User currently offlineSlawko From Canada, joined May 1999, 3799 posts, RR: 9
Posted (13 years 6 months 3 days 5 hours ago) and read 1289 times:

More info to come...


"Clive Beddoe says he favours competition, but his actions do not support that idea." Robert Milton - CEO Air Canada
19 replies: All unread, jump to last
 
User currently offlineSuperdawg From Canada, joined Jan 2000, 347 posts, RR: 1
Reply 1, posted (13 years 6 months 3 days 4 hours ago) and read 1207 times:

This should be interesting!

User currently offlineBWIA330 From Canada, joined Jan 2001, 919 posts, RR: 0
Reply 2, posted (13 years 6 months 3 days 4 hours ago) and read 1194 times:

Where did you find this informationl? This sounds very interesting.

User currently offlineChrisa330 From Canada, joined Oct 1999, 630 posts, RR: 0
Reply 3, posted (13 years 6 months 3 days 4 hours ago) and read 1184 times:

Here is the release:

CANADA 3000 Inc. and Royal Aviation Inc. announced an agreement whereby CANADA 3000 will offer to acquire 100% of the shares of Royal. The combined company is Canada's second largest passenger airline, with annual revenues last year of over $1 billion and serving over 5 million passengers a year. The company will employ 4,000 people from across Canada and around the world.

Under the terms of the agreement, CANADA 3000 will offer one common share for every 2.5 common shares of Royal. The total value of the transaction is approximately $84 million. The Offer has been recommended by the Board of Directors of both companies.

The Offer will be subject to various conditions, including the valid deposit of not less than 66 2/3% of the common shares of Royal on a fully- diluted basis, and the obtaining of all necessary approvals from regulatory authorities.

John M. S. Lecky, Chairman of CANADA 3000, said: "We are delighted that Royal and CANADA 3000 have agreed to come together. The combined airline represents an excellent fit and brings together CANADA 3000's long haul, international services with Royal's short-haul domestic capabilities. This will be a truly national and international airline, offering frequency, the lowest fares and broad-based excellent service."

Michel Leblanc, Chairman, President and Chief Executive Officer of Royal Aviation, said: "Royal is very pleased to be joining forces with an outstanding carrier like CANADA 3000. The combined company represents an excellent platform for dynamic growth in the business market."

Mr. Leblanc joins the CANADA 3000 senior executive team as Vice Chairman and Managing Director, Canadian Scheduled Services. He will continue to be based in Montreal.

"This deal is also good news for all of Royal's employees. We expect that the combined company will create additional jobs and open new opportunities for the professional growth of our people. I look forward to working with my current colleagues at Royal and my new colleagues at CANADA 3000 as we vigorously pursue our combined growth objectives," said Mr. Leblanc.

Angus Kinnear, President of CANADA 3000, said: "The creation of a larger alternative airline should also be welcome news for Canada's traveling public. The enhanced organization will have a fleet of 34 aircraft, with a further 10 aircraft on order. The current 30 domestic city pairs served by the combined airline is expected to grow to over 40 domestic city pairs by this summer."

CANADA 3000 will be mailing its Offer to shareholders of Royal Aviation within the next 30 days. The Offer will be open for 21 days following the mailing.

An irrevocable lock-up agreement for approximately 45% of Royal's fully- diluted shares has been signed by the company's largest shareholder. A support agreement was entered into by CANADA 3000 and Royal on January 28, 2001 providing for the payment of a breakup fee of $3 million by Royal in certain circumstances, including the Board of Directors changing its recommendations to accept the Offer and for the payment of a walk-away fee of $2 million by CANADA 3000 if it does not make the Offer on or before February 28, 2001.


It will be interesting to see what happends to the fleet as Canada 3000 prides itself on having a young fleet as it beleives the cost of financing new aircraft is cheaper than maintaining and fueling older aircraft. Royal's fleet is quite old especially with the addition of the 732's.

Very interesing times indeed!


User currently offlineCrosswind From United Kingdom, joined Nov 2000, 2598 posts, RR: 58
Reply 4, posted (13 years 6 months 3 days 4 hours ago) and read 1165 times:
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Looks like the combined Canada 3000/Royal network could begin to provide some real Canadian competition to Air Canada/Canadian.

I'm sure Canada 3000 can't wait to get their hands on Royal's A310s, which would be very attractive for their Trans-Atlantic flights in place of B757-200s. Canada 3000 nearly pruchased several ex-Delta A310-300s in 1995, so the type obviously has some appeal for them. This could in theory lead to an all-Airbus scheduled network, with the Boeings only used for charter work.

Also of interest is the fact that Royal is now offering Premium Cabins on their aircraft, while Canada 3000 does not. This could be a chance for Canada 3000 to capture some higher-yield traffic.

Ceratinly interesting times ahead...


User currently offlineChrisa330 From Canada, joined Oct 1999, 630 posts, RR: 0
Reply 5, posted (13 years 6 months 3 days 3 hours ago) and read 1135 times:

Isn't C3 slowly getting rid of their 757's? I wonder if this deal will change this.

User currently offlineJAT From Canada, joined Feb 2000, 1101 posts, RR: 10
Reply 6, posted (13 years 6 months 3 days 3 hours ago) and read 1139 times:

Here comes my new favourite Canadian airline! What will it be called? Royal Canada? Canada Royal? Royal 3000 Canada.  Smile What do you think? I think it should be Canada Royal. "Fly with us and you fly like Royalty" or something like that.


User currently offlineYHU From Canada, joined Jun 2000, 428 posts, RR: 1
Reply 7, posted (13 years 6 months 2 days 23 hours ago) and read 1092 times:

I like the sound of Royal Canadian Airlines. But it may sound too much like Canadian Airlines.

User currently offlineCrosswind From United Kingdom, joined Nov 2000, 2598 posts, RR: 58
Reply 8, posted (13 years 6 months 2 days 23 hours ago) and read 1089 times:
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Canada 3000 are intending to buy Royal. This is not a merger. There appear to be no plans to change Canada 3000's name.

User currently offlineTrvlr From United States of America, joined Feb 2000, 4430 posts, RR: 21
Reply 9, posted (13 years 6 months 2 days 23 hours ago) and read 1090 times:

Well seeing as Royal is the one being bought out here, I doubt we'll see a "Royal" in the new name if there is one. I do think that a new image is needed for this new airliner however.

Aaron G.


User currently offlineYHU From Canada, joined Jun 2000, 428 posts, RR: 1
Reply 10, posted (13 years 6 months 2 days 19 hours ago) and read 1059 times:

I had heard on one of the news channels (can't remember which one) that there would be a new name for the new airline. Could be wrong though.

User currently offlineGmonney From Canada, joined Jan 2001, 2159 posts, RR: 20
Reply 11, posted (13 years 6 months 2 days 18 hours ago) and read 1065 times:

Hey, but what about the trend? How about RoyJet 3000!!!!!!


Drive it like you stole it!
User currently offlineBoeing422 From Canada, joined Jan 2001, 28 posts, RR: 0
Reply 12, posted (13 years 6 months 2 days 18 hours ago) and read 1054 times:

The new airline will be known as Canada 3000.

User currently offlineBlink182 From Azerbaijan, joined Oct 1999, 5480 posts, RR: 15
Reply 13, posted (13 years 6 months 2 days 17 hours ago) and read 1045 times:

Canada3000 sounds good! Keep in mind that when A company buys 100% of B company, the name is A company's original name, unless they decide to change their name. Could AirCanada get some competition? I hope not! GO AC!
rgds,
blink182



Give me a break, I created this username when I was a kid...
User currently offlineSamurai 777 From Canada, joined Jan 2000, 2458 posts, RR: 4
Reply 14, posted (13 years 6 months 2 days 16 hours ago) and read 1034 times:

How about a livery change?

User currently offlinePilot1113 From United States of America, joined Aug 1999, 2333 posts, RR: 11
Reply 15, posted (13 years 6 months 2 days 16 hours ago) and read 1036 times:

Where's Buff when you need him?  Smile Here's a congrads to the ol' guy!

- Neil Harrison


User currently offlineGmonney From Canada, joined Jan 2001, 2159 posts, RR: 20
Reply 16, posted (13 years 6 months 2 days 16 hours ago) and read 1031 times:

I hope that it doesn't look as bad as SouthWest's.........blaaaaaaa

G



Drive it like you stole it!
User currently offlineAirman99o From Canada, joined Aug 1999, 975 posts, RR: 1
Reply 17, posted (13 years 6 months 2 days 14 hours ago) and read 1021 times:

If they do happen to change the name and colour scheme. I think that the name should include both airlines names in it. but I cannot think of a way that they go together well.

The colours should keep the purple tail with the gold leaves in it and have the red and gold pin stirpe going along the side but more pronuounced.

HOPE that they give Air Canada a good run for their money and have some really good fare wars!!


Airman99o



Safety is Everyones Responsibility.
User currently offlineTrvlr From United States of America, joined Feb 2000, 4430 posts, RR: 21
Reply 18, posted (13 years 6 months 2 days 14 hours ago) and read 1029 times:

Maybe they should purchase the rights to the Canadian Airlines name... Smile
Oh, wishful thinking...

Aaron G.


User currently offlineSlawko From Canada, joined May 1999, 3799 posts, RR: 9
Reply 19, posted (13 years 6 months 2 days 6 hours ago) and read 1004 times:

hehehe Air Canada would never sell the rights to the CP name to C3, not in a million years!!! Royal Canadian would be kool, but I doubt it will be changed from that crappy C3 name.


"Clive Beddoe says he favours competition, but his actions do not support that idea." Robert Milton - CEO Air Canada
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