Rootsboy From Canada, joined Feb 2001, 111 posts, RR: 2 Posted (11 years 7 months 6 days 5 hours ago) and read 1019 times:
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I would never wish un-employment on anyone, and I’m not anti Air Canada, but I have a question for you all.
We all know that Air Canada is in severe debt, but thank god they have made a profit this passed quarter. We also know that Air Canada would love to get rid of a lot of their “senior” employees who make a ton of money. Don’t you think it would be a lot easier for Air Canada to just claim bankruptcy and come back with another name like Sabena and Swiss Air did? Like SN Brussels and Swiss, most former employees would just be hired back. Granted your wages would not be as high, and your seniority shot to hell, but it would probably turn Air Canada into a very profitable airline, whatever name it came back with…….maybe Canada Air, who knows. It may not look good from an employee prospective, but don’t you think it makes sense from a business prospective?
Lymanm From Canada, joined Jan 2001, 1138 posts, RR: 1
Reply 1, posted (11 years 7 months 6 days 5 hours ago) and read 1003 times:
Oooh, Bay St would *love* a company operating under chapter 11!!!!
It's hard to run a company under Ch.11. Braniff tried. Pan Am tried. Eastern tried. USAirways is trying (good luck to the soon-to-be dearly departed). Based on this track record alone, no, it would not be a good business decision to operate under chapter 11.
Seiple From , joined Dec 1969, posts, RR:
Reply 2, posted (11 years 7 months 6 days 5 hours ago) and read 990 times:
I think some of you should take a closer look at US Airways' financials.... they will come out of this bankruptcy (and actually could basically any day if they wanted to as their liabilities are only slightly higher than their assets). They just needed to reorganize, dump some leases on a few airplanes (that are not flying and parked in the desert anyway), and open the company up to new investors (such as TexasPacific with their cash injection).
Seiple From , joined Dec 1969, posts, RR:
Reply 4, posted (11 years 7 months 6 days 4 hours ago) and read 983 times:
Yes, Continental did. TWA did several times. Chapter 11 usually means a second chance for a company, and if managed well after emerging, they can go on for years to come (like Continental).
Captaingomes From Canada, joined Feb 2001, 6413 posts, RR: 56
Reply 6, posted (11 years 7 months 6 days 4 hours ago) and read 976 times:
Rootsboy, the key to Air Canada's success is to be a more efficient player in the market. I personally think they should quit going after market share at all costs, and rather streamline their products in order to more properly and efficiently serve their customers. If they provide what their customers need and want, they will continue to post profits. If they start having a good track record, they will be able to get more investments, and their revenues will rise, effectively taking care of their debts.
If AC goes into bankruptcy protection, there goes much of the credibility which corporations strive so hard to earn. They will not be able to get financing nearly as easily as if they were a profitable and efficient company. They wont get as good deals when purchasing or financing aircraft, or securing other contracts, as everybody will be afraid to do business with Air Canada.
Rootsboy, bankruptcy protection and reorganization should be an absolute last step when nothing else could work to save a company.
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
Tullamarine From Australia, joined Aug 1999, 1394 posts, RR: 0
Reply 8, posted (11 years 7 months 6 days 4 hours ago) and read 962 times:
Does Canada have an equivalent to Chapter 11 anyway?
Here in Australia, a company in trouble would go into administration rather than Chapter 11 which is fundamentally different as under administration, an external administrator is appointed in place of the previous management and it is the administrator's job to maximise the return to secured and unsecured creditors and whether that means the business continues at all depends on whether anyone wants to buy the underlying business. In Australia it is unlikely that a company could emerge from administration at all similar to the company that when in to administration. As can be seen by AN, most companies in administration end up as a controlled liquidation, though occassionally they come out with new owners and new management (Kendall/Hazelton as REx being a current example.)
Cessnapimp From Canada, joined Oct 2001, 1320 posts, RR: 21
Reply 9, posted (11 years 7 months 6 days 2 hours ago) and read 914 times:
I just don't see AC to be in that bad of a shape to be able to declare "bankruptcy protection". Things are actually looking up for the first time in a while here. The 2nd quarter profit, the re- moving of the first A345 delivery back to November and the first A346 to February. Possible new Asian routes... hush... hush...
(Really, what'd you think we would do in Feb with a brand spankin' new A346 in the middle of Feb? Rapidairs? Compete with Skyservice on Santa Banana Runs?)