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AC Delays First 787  
User currently offlineSixtySeven From Canada, joined Nov 2006, 332 posts, RR: 2
Posted (5 years 3 weeks 1 day 22 hours ago) and read 3837 times:

Not sure if this has been covered but the Toronto Star just stated that amid the $1 Billion in new financing, Air Canada has delayed taking first delivery of the 787 until Mid-2013. It also said they have reduced their options to I think it was 13 from 23. The firm orders still sit at 37.

Is this big news? Not sure. Depends on whether or not the plane flies by then.


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8 replies: All unread, jump to last
 
User currently offlineChrisA330 From Canada, joined Oct 1999, 631 posts, RR: 0
Reply 1, posted (5 years 3 weeks 1 day 21 hours ago) and read 3814 times:

Do we really know if this is an AC initiated delay or is this as a result of the 787 program delays? This is the first confirmation we've seen on a revised delivery date for AC in a while.

User currently offlineSixtySeven From Canada, joined Nov 2006, 332 posts, RR: 2
Reply 2, posted (5 years 3 weeks 1 day 21 hours ago) and read 3759 times:

Not sure. It was announced in a news release concerning their securing of $1 billion in new financing. It certainly was not in depth.

The delay is about one year from the previously announced delivery. It is my belief that the 787 will not fly this year as someone at boeing told me so at a meeting last fall. Don't ask, I can't tell. So how it effects things I'm not sure.

My question is, what kind of penalties is Boeing giving AC for the delay? They also announced a sale lease-back of some 777s today as well. Is Air Canada walking away from the penalties in lieu of new financing?

Something for the money heads out there as I know nothing about that aspect.



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User currently offlineChrisA330 From Canada, joined Oct 1999, 631 posts, RR: 0
Reply 3, posted (5 years 3 weeks 1 day 21 hours ago) and read 3733 times:



Quoting SixtySeven (Reply 2):
My question is, what kind of penalties is Boeing giving AC for the delay? They also announced a sale lease-back of some 777s today as well. Is Air Canada walking away from the penalties in lieu of new financing?

http://finance.yahoo.com/news/Air-Ca...02-prnews-1223764413.html?x=0&.v=2

"In addition, Air Canada has concluded an agreement with a supplier, conditional among other things, on completion and funding of the Credit Agreement, which will provide Air Canada with a payment of approximately $220 million, in consideration of various contractual commitments."

My guess is the unnamed supplier is Boeing.


User currently offlineDougbr2006 From Brazil, joined Oct 2006, 391 posts, RR: 0
Reply 4, posted (5 years 3 weeks 1 day 21 hours ago) and read 3671 times:

Perhaps this where Boeing is conjuring up earlier deliveries for Qatar Airways in 2012 !!!

User currently offlineSixtySeven From Canada, joined Nov 2006, 332 posts, RR: 2
Reply 5, posted (5 years 3 weeks 1 day 20 hours ago) and read 3449 times:

ChrisA330. Thanks. I didn't see that or at least it was included in the release I read. Very interesting.

If it turns out that is indeed Boeing, then I imagine there could be no end to the haggling the two did. Delaying deliveries to move up other customers or open "early" slots to new customers.

Interesting times indeed.



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User currently offlinePnwtraveler From Canada, joined Jun 2007, 2235 posts, RR: 12
Reply 6, posted (5 years 3 weeks 1 day 17 hours ago) and read 3230 times:

Yes it was in the other thread this morning about the $1.1 Billion, along with the adjustment of the change of 787 delivery and in the number of aircraft on option.

User currently offlineEbbUK From , joined Dec 1969, posts, RR:
Reply 7, posted (5 years 3 weeks 1 day 17 hours ago) and read 3107 times:



Quoting SixtySeven (Reply 2):

The delay is about one year from the previously announced delivery. It is my belief that the 787 will not fly this year as someone at boeing told me so at a meeting last fall. Don't ask, I can't tell

Please do not put this into the public domain because if true, it will only throw Boeing into more serious do do than they are in at present. What did that person know then? Something else rather than the delam fiasco on the wing box? How come that person knew and yet the shareholders were kept in the dark? Apparently US laws are very strict on this. I wouldn't know I am a Brit.

If you won't back it up keep it quiet. I think it is the best policy in these troubled times.


User currently offlineYyz717 From Canada, joined Sep 2001, 16248 posts, RR: 56
Reply 8, posted (5 years 3 weeks 1 day 2 hours ago) and read 2684 times:

AC reduced its options for the 787 from 23 to 13, but added 10 "purchase rights".

So the 787 "commitment" is still 60 aircraft -- 37 firm, 13 options, 10 PR's.

AC also renewed and extended its CPA with Jazz to 2020. The minimum fleet guarantee is reduced from 133 to 125 covered aircraft, and includes a commitment to commence fleet renewal in 2011;

Jazz, which is an income trust, will now reduce its monthly distributions by 40%. The collapse in Jazz share price in the past year has resulted in an incredible yield dividend of >30% on Jazz shares, without share price appreciation (which is now happening anyway). The 40% distribution reduction will still leave a very high (~20% ish) yield at the current price.



Panam, TWA, Ansett, Eastern.......AC next? Might be good for Canada.
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