CanadianDC10 From Canada, joined Aug 2001, 335 posts, RR: 6 Reply 3, posted (11 years 3 months 1 week 5 days 15 hours ago) and read 1490 times:
I don't think they're exactly selling their regional carriers, they're just integrating them together. Here is Air Canada Regional's new website recently opened http://www.aircanadaregional.com/.
Lymanm From Canada, joined Jan 2001, 1133 posts, RR: 1 Reply 5, posted (11 years 3 months 1 week 5 days 10 hours ago) and read 1427 times:
Didn't they already try to sell Canadian Regional during the merger, without success? I'm dubious as to the market for ACR, considering they will be faced with a few merger teething problems after Air Ontario, Air Nova and Air BC are amalgamated... Will investors be discouraged by this potential union unrest?
Watewate From Canada, joined Nov 2000, 2283 posts, RR: 2 Reply 6, posted (11 years 3 months 1 week 5 days 10 hours ago) and read 1415 times:
Prospects don't look too bright. Why would any sane investor sink their funds on ACR? Lets see, hodge-podge of ex-feeder airlines, varied and antique fleet, high labor costs, low morale, increasing competition from Westjet... AC needs to do everything right to make ACR attractive to potential buyers. But seeing Milton's recent track record, I'm not betting my mortgage.
Yyz717 From Canada, joined Sep 2001, 15999 posts, RR: 59 Reply 7, posted (11 years 3 months 1 week 5 days 7 hours ago) and read 1393 times:
ACR's business plan is based entirely on its feed relationship with AC, which AC can turn on or off at any time. Why would any investors sink money into a feeder? You may as well invest in the parent. Sounds like AC wants some quick cash by spinning off a subsidiary. I wouldn't touch independent shares of ACR with a 10-foot pole.
Panam, TWA, Ansett, Eastern.......AC next? Might be good for Canada.
Connector4you From Canada, joined May 2001, 923 posts, RR: 2 Reply 8, posted (11 years 3 months 1 week 4 days 20 hours ago) and read 1360 times:
I would agree that fast CASH is the magic word here. Recently AC sold some cargo facilities (hangars) at YVR and YYZ (buyer- Airport Authorities??) and leased them back. I think ACR is far from being profitable as we speak. Potential buyers are scarce right now and without large concessions from AC, I don't see this sale going through either.
Canadian Government looks rather concerned about how things are going with AC anticipating perhaps that a buy-back of the airline might be soon necessary: "Federal Transport Minister David Collenette has made it clear he would prefer Air Canada to focus on its cross-border and international business..." (that's where the money are coming from)
It looks like a "do or die" situation for Mr. Milton & Co. Hopefully I am wrong…
Crj 900 From Canada, joined Mar 2001, 584 posts, RR: 1 Reply 9, posted (11 years 3 months 1 week 4 days 19 hours ago) and read 1344 times:
watewate....WHERE DID YOU GET THE IMPRESSION THAT MORALE WAS LOW AT ACR? You can say whatever you like about maniline AC but bite your tongue about Regional. We have new contracts in place,our operations are merged effective the 1st Apr, 10 NEW CRJs on the way and look for more orders of those. The 146's are not antique and the old F28s will be gone by the end of the year. Believe me when I say the only bitter people flying a Maple Leaf are at Mainline. Furthermore, alot of big North American carriers are selling their Regional divisions as they are money making. Continental Express is up for sale. Personally i hope we are sold...if we are...look out Westjet, I can guarantee you we'll knock them out of the East Coast and give a good run in the West. They have NO loyalty out East and without getting into the WJ/AC thing, they too will have their low day.
Samurai 777 From Canada, joined Jan 2000, 2451 posts, RR: 5 Reply 10, posted (11 years 3 months 1 week 4 days 18 hours ago) and read 1331 times:
Crj900, how come it's been taking so LONG for ACR to really come together as one!? The four regionals were legally bound under the name Air Canada Regional in 2000, I believe.
Frankly, I'm not sure if AC's ever going to have an easy time trying to sell ACR if it wanted to. Remember how they tried to sell Canadian Regional? Nobody wanted it, so AC was stuck with it, pilots, old F28s and all!
Slawko From Canada, joined May 1999, 3799 posts, RR: 10 Reply 11, posted (11 years 3 months 1 week 4 days 18 hours ago) and read 1320 times:
Like I said before I think that ACR will be sold.
BUT, it will be a hard sell, even if the company is making money, there are the contractual restrictions on the company that have existed since the days of Great Lakes airlines, and unless AC and ACR can resolve those problems selling the company will not be easy. The restrictions on routes, and on aircraft types makes ACR an tough sell. The differance between ACR and the US regionals is that they are not bound by the same kinds of restrictions, and they are free to contract themselves out to more then one airline at once. IF the independant ACR could take contracts from Air Canada, as well as Skyservice or Transat feeding their major centers, they could grow to be very big. The question is, will they be able to do it?
"Clive Beddoe says he favours competition, but his actions do not support that idea." Robert Milton - CEO Air Canada
Noise From Canada, joined Dec 1999, 1570 posts, RR: 5 Reply 12, posted (11 years 3 months 1 week 4 days 16 hours ago) and read 1293 times:
What happens when a regional carrier gets sold? Does the parent company still control it and it's flight scheduels? Will AC profit if ACR is making money?
Yyz717 From Canada, joined Sep 2001, 15999 posts, RR: 59 Reply 13, posted (11 years 3 months 1 week 4 days 14 hours ago) and read 1288 times:
When a regional is sold, it becomes an independent company. Granted, much of its revenue will continue to come from interline & feed with the parent. The contract with the parent will determine whether the feeder will be able to offer its feed services to other carriers and/or branch out with an independent operation. Whether a regional is owned or not, its fortunes are VERY HEAVILY tied to the fortunes & whims of the (former) parent.
I don't see a spun-off ACR being any threat to Westjet. ACR has a high cost structure, high seat-mile costs (due to smaller aircraft), lower productivity.
IMHO
Neil
Panam, TWA, Ansett, Eastern.......AC next? Might be good for Canada.
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