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Continental To Divest Shares In Copa  
User currently offlineLAXintl From United States of America, joined May 2000, 24729 posts, RR: 46
Posted (6 years 1 month 3 weeks 4 days 3 hours ago) and read 3971 times:

Gathering up cash to help ride out the current industry turbulance.

Quote:
Continental Selling Shares In Alliance Partner Copa
05/20/2008

Continental Airlines filed a registration statement to sell most or all of its 10% stake in the Panamanian airline. Under the proposed maximum offering price of $35.88, Continental could take in more than $150 million from the sale of the stock.

Continental reduced its stake in alliance partner Copa from 49% to 27.3% in December 2005 in connection with Copa's initial public offering, and reduced it again to 10% in a follow-on offering in 2006. Selling the rest will help Continental raise some money during difficult times for the industry, and could presage more sell-offs of non-core assets by U.S. carriers.

story (subscription required)
http://www.aviationweek.com/publicat...ng+Shares+In+Alliance+Partner+Copa

[Edited 2008-05-19 16:48:16]


From the desert to the sea, to all of Southern California
20 replies: All unread, jump to last
 
User currently offlineB727 From United States of America, joined Oct 1999, 521 posts, RR: 2
Reply 1, posted (6 years 1 month 3 weeks 4 days 3 hours ago) and read 3936 times:

I often wondered why Copa livery was similar to CO.


B727
Glenn


User currently offlineBentley55 From Panama, joined Mar 2008, 99 posts, RR: 0
Reply 2, posted (6 years 1 month 3 weeks 4 days 2 hours ago) and read 3883 times:

What would be the implications for Copa? (different livery, FF program, code-share etc)? In general, is this a good thing or bad thing for Copa and its frequent passengers?

User currently offlineLudavid777 From United States of America, joined Jun 2001, 206 posts, RR: 0
Reply 3, posted (6 years 1 month 3 weeks 4 days 2 hours ago) and read 3813 times:

I don't think the codeshare agreement between CO and CM is based on stock ownership... Initially it was the reason the agreement started... for rebranding purposes, due the high stake CO had in CM, but that's changed. In any case they compliment each other well, so I see no reason they would end the partnership.

It's my assumption the codeshare, onepass, uniform, livery, etc will remain the same, or at least I hope so...  Smile


User currently onlineAvianca From Venezuela, joined Jan 2005, 5919 posts, RR: 40
Reply 4, posted (6 years 1 month 3 weeks 4 days 2 hours ago) and read 3784 times:

could be LH interested???


Colombia es el Mundo Y el Mundo es Colombia
User currently offlineEddieDude From Mexico, joined Nov 2003, 7558 posts, RR: 43
Reply 5, posted (6 years 1 month 3 weeks 4 days 1 hour ago) and read 3684 times:

I am also quite interested in the post-sale reality of CM. Will they continue to use OnePass? Will they follow CO if CO leaves SkyTeam?


Next flights: MEX-GRU (AM 77E), GRU-GIG (JJ A320), SDU-CGH (G3 73H), GRU-MEX (JJ A332).
User currently offlineMOBflyer From United States of America, joined Sep 2007, 1209 posts, RR: 4
Reply 6, posted (6 years 1 month 3 weeks 4 days ago) and read 3579 times:



Quoting EddieDude (Reply 5):
I am also quite interested in the post-sale reality of CM. Will they continue to use OnePass? Will they follow CO if CO leaves SkyTeam?

I think this may be the very reason for the divestiture. In the even of an alliance switch (which is seeming more and more likely) they don't need any strings, including interest in another alliance's carrier(s).


User currently offline2travel2know From Panama, joined Apr 2005, 3580 posts, RR: 4
Reply 7, posted (6 years 1 month 3 weeks 3 days 15 hours ago) and read 3347 times:

I wouldn't tie CO CM's stock divestiture with CM leaving SkyTeam. CM waited so long to become at least an associate member to just leave that alliance.
Something that might be on CM management mind now is that eventually their cooperation with CO came to a point where there's very little else to do. Yes, CO feeds to CM from IAH plus CM feeds to CO to IAH and EWR @ PTY, but CO itself is a CM competitor in several markets.
One thing I could be sure about, CM will think it twivce leaving SkyTeam to go to the alliance where AA is or the alliance which TA might get into.



I don't work for COPA Airlines!
User currently offlineJoFMO From Germany, joined Jul 2004, 2211 posts, RR: 0
Reply 8, posted (6 years 1 month 3 weeks 3 days 12 hours ago) and read 3217 times:



Quoting EddieDude (Reply 5):
I am also quite interested in the post-sale reality of CM. Will they continue to use OnePass? Will they follow CO if CO leaves SkyTeam?

Copa mentioned some weeks ago that they would follow CO and that they rate their Alliance with CO much more important than with Sky. I don't expect that this has changed because of the deinvestment.

I am looking forward to welcome Copa in Star  Smile


User currently offlineCal764 From United States of America, joined May 2008, 376 posts, RR: 0
Reply 9, posted (6 years 1 month 3 weeks 3 days 10 hours ago) and read 3081 times:

Wow, this is news. I guess CO's gonna need the $ to weather the storm...


1. Fly to Win 2. Fund Future 3. Reliability 4. Work Together CO: Work Hard, Fly Right...
User currently offlineMt99 From United States of America, joined May 1999, 6565 posts, RR: 6
Reply 10, posted (6 years 1 month 3 weeks 3 days 10 hours ago) and read 3067 times:
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Quoting Bentley55 (Reply 2):
What would be the implications for Copa? (different livery, FF program, code-share etc)? In general, is this a good thing or bad thing for Copa and its frequent passengers?

I think it depends on who much "assistance" CM gets from CO (maintenance, food service, check in, logistics - just thinking out loud). Maybe CO was more willing to "help out" CM on any of these (or other) issues because they would indirectly benefit from it. If they are no longer part of this, then this technical/operational relationship may change.



Step into my office, baby
User currently offlineMasseyBrown From United States of America, joined Dec 2002, 5351 posts, RR: 7
Reply 11, posted (6 years 1 month 3 weeks 3 days 10 hours ago) and read 3032 times:



Quoting Cal764 (Reply 9):
Wow, this is news. I guess CO's gonna need the $ to weather the storm...

I wonder if the "retirement" of CO's CFO Jeff Misner is related to this. First I thought that he was leaving (in August at the age of 55) perhaps because he discovered that there was no room for him in a CO/UA merger. Now I have to think that CO's need for cash (CO is also cutting capital expenditures) may be related somehow to his job performance.



I love long German words like 'Freundschaftsbezeigungen'.
User currently offlineSJOtoLIR From Costa Rica, joined Jul 2007, 4364 posts, RR: 4
Reply 12, posted (6 years 1 month 3 weeks 2 days 23 hours ago) and read 2805 times:

Mr. Pedro Heilbron -who is the Copa Holdings' CEO- quoted on February 2008 that they would follow partner CO out of SkyTeam:

"It's obviously kind of early to tell what's going to happen," Heilbron told analysts on the airline's earnings call yesterday. "However, we have an alliance with Continental that's very strong and a contract that runs through 2012, so we plan to remain with Continental. We will probably follow them wherever they go," he said, noting that "most our value in the alliance is between us two." "We recently joined SkyTeam, but we're only starting to work on all the necessary agreements, so we really don't have a lot at stake there. Our partnership and our value is with Continental," Heilbron said. He also touted the value of Copa's Latin America network, "which is not only valuable to Continental but to any other global alliance. We think we're in a very strong position no matter what happens."

However, the landscape is steadily changing and it would be interesting to analyze if he would keep his prior assessment, based on the new subject that is starting to discuss in this thread.




.

Quoting JoFMO (Reply 8):
I am looking forward to welcome Copa in Star

The issue at stake is plenty of complexity. CM has already established commercial agreements with other carriers involved in the same group where CM is working at this time: AM, KL and CO.
On the other hand, airlines usually sustains deals with other carriers, regardless if they are involved in the same global alliance.

Regards.



"Goin' up to the spirit in the sky"
User currently offlineLAXintl From United States of America, joined May 2000, 24729 posts, RR: 46
Reply 13, posted (6 years 1 month 3 weeks 2 days 1 hour ago) and read 2608 times:

A little update - sale complete

Quote:
Continental Sells Remaining Copa Stake
05/22/2008

Continental Airlines has disposed of its remaining stake in Copa Airlines.

In a statement yesterday the Panamanian carrier said Continental had sold its last 4.38 million shares in the Central American company for $149.8 million, or $35.75 a share. The sale was underwritten by Morgan Stanley and UBS Investment Bank.

link (subscription required)
http://www.aviationweek.com/publicat...inental+Sells+Remaining+Copa+Stake



From the desert to the sea, to all of Southern California
User currently offlineIronDuke08 From United States of America, joined Feb 2008, 117 posts, RR: 0
Reply 14, posted (6 years 1 month 3 weeks 2 days ago) and read 2596 times:



Quoting Ludavid777 (Reply 3):
I don't think the codeshare agreement between CO and CM is based on stock ownership... Initially it was the reason the agreement started... for rebranding purposes, due the high stake CO had in CM, but that's changed. In any case they compliment each other well, so I see no reason they would end the partnership.

It's my assumption the codeshare, onepass, uniform, livery, etc will remain the same, or at least I hope so...  

Didn't CO at one point have almost a 50% stake in CM? I think this is about as simple as it appears, CO is (finishing) cashing out on a good investment, but I would expect that their strong working relationship will continue.


User currently offline2travel2know From Panama, joined Apr 2005, 3580 posts, RR: 4
Reply 15, posted (6 years 1 month 3 weeks 1 day 17 hours ago) and read 2473 times:



Quoting IronDuke08 (Reply 14):
Didn't CO at one point have almost a 50% stake in CM? I think this is about as simple as it appears, CO is (finishing) cashing out on a good investment,

Too bad CO didn't sell when the stock was up in the USD70 range.



I don't work for COPA Airlines!
User currently onlineViscount724 From Switzerland, joined Oct 2006, 24652 posts, RR: 22
Reply 16, posted (6 years 1 month 3 weeks 1 day 8 hours ago) and read 2345 times:



Quoting IronDuke08 (Reply 14):
Didn't CO at one point have almost a 50% stake in CM?

49%. It was reduced in 2 or 3 stages in several public offerings.


User currently offlineCAL764 From United States of America, joined May 2008, 376 posts, RR: 0
Reply 17, posted (6 years 1 month 3 weeks 1 day 3 hours ago) and read 2251 times:



Quoting MasseyBrown (Reply 11):
I wonder if the "retirement" of CO's CFO Jeff Misner is related to this. First I thought that he was leaving (in August at the age of 55) perhaps because he discovered that there was no room for him in a CO/UA merger. Now I have to think that CO's need for cash (CO is also cutting capital expenditures) may be related somehow to his job performance

Now THATS some food for thought...he could just be "stepping aside" to let CO do it's thing. Gotta loose the deadweight if that's the case.



1. Fly to Win 2. Fund Future 3. Reliability 4. Work Together CO: Work Hard, Fly Right...
User currently offlineLudavid777 From United States of America, joined Jun 2001, 206 posts, RR: 0
Reply 18, posted (6 years 1 month 3 weeks 1 day 2 hours ago) and read 2203 times:



Quoting IronDuke08 (Reply 14):
Didn't CO at one point have almost a 50% stake in CM? I think this is about as simple as it appears, CO is (finishing) cashing out on a good investment, but I would expect that their strong working relationship will continue.



Quoting Viscount724 (Reply 16):
49%. It was reduced in 2 or 3 stages in several public offerings

At some point CO actually owned 51% of CM... majority stake... I'm not sure the legality of it considering CO is from the US and CM from Panama, but that's what the filing on May 19th 1999. Shows, CO stake in CM at 51%.


User currently offlineMasseyBrown From United States of America, joined Dec 2002, 5351 posts, RR: 7
Reply 19, posted (6 years 1 month 3 weeks 19 hours ago) and read 2130 times:



Quoting CAL764 (Reply 17):

Now THATS some food for thought...he could just be "stepping aside" to let CO do it's thing.

I have a feeling he argued in favor of betting on cheaper fuel and lost.



I love long German words like 'Freundschaftsbezeigungen'.
User currently offlineTACAA320 From , joined Dec 1969, posts, RR:
Reply 20, posted (6 years 1 month 3 weeks 6 hours ago) and read 2014 times:



Quoting 2travel2know (Reply 15):
Too bad CO didn't sell when the stock was up in the USD70 range.

Probably because such stock's price wasn't last too much before it dropped in the NYSE.


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