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Future Of Air Canada  
User currently offlineBicoastal From , joined Dec 1969, posts, RR:
Posted (15 years 1 month 3 weeks 1 day 20 hours ago) and read 1304 times:

As a frequent Star Alliance flyer including on Air Canada, I was wondering if any one has predictions on who will win the battle over Air Canada.....OneWorld/American or Star Alliance/United/Lufthansa??

13 replies: All unread, jump to last
 
User currently offlineBoeing757/767 From United States of America, joined Jun 1999, 2282 posts, RR: 1
Reply 1, posted (15 years 1 month 3 weeks 1 day 20 hours ago) and read 1129 times:

I hope UAL and Lufthansa. I believe they will offer more for shareholders.


Free-thinking, left-leaning secularist
User currently offlineAC_A340 From Canada, joined Sep 1999, 2251 posts, RR: 1
Reply 2, posted (15 years 1 month 3 weeks 1 day 20 hours ago) and read 1125 times:

I have huge amounts of faith that United & Lufthansa & Bank Of Montreal WILL come through with a very decent offer for Air Canada. And after that, I'm hoping that they'll sell there shares to Air Canada, that way it will always be in Canada. I doubt the Onex offer will go through. If it does, I hope United starts flying routes within Canada. I much prefer Star Alliance. Either way laws will have to be changed to allow this and that will take time.

User currently offlineAmerican B757 From United States of America, joined Jul 1999, 370 posts, RR: 0
Reply 3, posted (15 years 1 month 3 weeks 1 day 18 hours ago) and read 1106 times:

To tell you the truth, i hope none! As i was born in Montreal, i dont want my home town Airline to be eaten up by some other airline!

User currently offlineDTWA320 From United States of America, joined Oct 1999, 104 posts, RR: 0
Reply 4, posted (15 years 1 month 3 weeks 1 day 14 hours ago) and read 1093 times:

I'd like Air Canada to stay just the way they are... All Canadian. I'm an American with Canadian ties, and I'm pretty sure that most canadians would like to have something they can totally call their own. I'm sure UAL and Lufthansa have great ideas, but some things are better left alone (at least from my point of view).

User currently offlineAC_A340 From Canada, joined Sep 1999, 2251 posts, RR: 1
Reply 5, posted (15 years 1 month 3 weeks 1 day 4 hours ago) and read 1078 times:

I'm afraid that unless UA and LH come up with a counter offer, shareholders mightgo with ONEX.

User currently offlineCYXX From , joined Dec 1969, posts, RR:
Reply 6, posted (15 years 1 month 3 weeks 18 hours ago) and read 1069 times:

I think that you are leaving out the piont that Canadian is the one that is being saved. The reason the UAL and LH did this offer is to offset the shareholders deciding to go with the Onex bid. The only reason Bank of Montreal is in with the counter offer is that UAL and LH does not upset the 25% rule. With no doubt in my mind the cash coming from Bank of Montreal orginated as the Dueschmark and American dollar. I would like to see that Canadian doesn't go belly up.


User currently offlineAC_A340 From Canada, joined Sep 1999, 2251 posts, RR: 1
Reply 7, posted (15 years 1 month 3 weeks 18 hours ago) and read 1075 times:

Unless the government helps them out, they will go belly up. They probably will because all of there 44 737s are not Stage III, (I Think).

User currently offlineDTWA320 From United States of America, joined Oct 1999, 104 posts, RR: 0
Reply 8, posted (15 years 1 month 3 weeks 18 hours ago) and read 1064 times:

I'd like to see Canadian stay around, I think they'd be a good second choice if I couldn't get an Air Canada flight. I remember flying on their old 737-200's when I was younger. I got tired of flying on the same old plane. :-)

User currently offlineFLY777UAL From United States of America, joined May 1999, 4512 posts, RR: 3
Reply 9, posted (15 years 1 month 3 weeks 18 hours ago) and read 1060 times:

As nice as the ONEX deal is (soon to be was), I think that UA/LH will win the bidding. Both of those companies (in addition to Bank of Montreal) need AC desperately (look up the figs. on yahoo business) to complete the Star Alliance. If the deal does go through, I think that it would be great of UA and LH to sell their "new AC" shares back to the "new AC", making it a completely Canadian-held airline! Go Canucks!

FLY777UAL


User currently offlineB777 From Canada, joined Sep 1999, 368 posts, RR: 0
Reply 10, posted (15 years 1 month 3 weeks 17 hours ago) and read 1062 times:

I still think Canadian (ex-CP Air) should have converted their 732 to newer 737 when they had the chance. I mean CP Air had the 733 in their fleet for a while but decided to have an all 732 fleet.

James


User currently offlineAllee From Canada, joined Jun 1999, 486 posts, RR: 0
Reply 11, posted (15 years 1 month 3 weeks 17 hours ago) and read 1062 times:

Canadian's 737s have been ungoing hushkitting over the past two years (or so), and the whole fleet will be done.

User currently offlineAC_A340 From Canada, joined Sep 1999, 2251 posts, RR: 1
Reply 12, posted (15 years 1 month 3 weeks 16 hours ago) and read 1060 times:

I wonder where they got the money for that.

User currently offlineAC183 From Canada, joined Jul 1999, 1532 posts, RR: 2
Reply 13, posted (15 years 1 month 3 weeks 15 hours ago) and read 1060 times:

According to Canadian Airlines annual information form, 17 B737-200 aircraft had been hushkitted during 1998, and a further 13 hushkits were to have been fitted by December 31, 1999. Under Canadian Legislation, all remaining aircraft must have hushkits installed no later than April 1, 2002.

It also notes that because they are below the weight thresholds, all aircraft in the Canadian Regional Airlines fleet are exempt from Canadian and US noise regulations. And as far as I'm concerned those F28's that Regional flies are noisier than the 732's, at least they seem to be when they fly over.

As far as the future of AC, well, the Onex plan didn't give AC shareholders very much, and I don't think they would approve it. However, I think there was a lot of speculation, and alot of people would be very disappointed if they didn't have another bidder pay them alot of money for their stock. If you're interested there's a site with alot of information, especially all the related newpaper and editorial links for this at http://www.acemployee.com.

As far as AC goes, or the industry as a whole, I think getting rid of or reorganizing (ie-bankrupcy protection) the weak Canadian would be the best way to revitalize it. Being from Calgary, I know some CP employees, and it would be a shame, but I think the best way to make everything more secure would be to either have a new start up or a CP reorganization that sheds some of the debt and reorganizes the fleet and routings more efficiently.

As far as competition, the end of Canadian would be ideal for creating new competitors. Unlike in a merger, it would create a lack of capacity, a surplus of skilled workers, and host of facilities and equipment ready to start up a new carrier. That would be an environment to create a new airline in. But politically its unacceptable, and of course it would be very sad to see CP go. I hope in the end both AC and CP manage to survive as independant carriers. But perhaps like the employees at Eaton's, after bankrupcy a new company would save some of the jobs that were lost.


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