Samurai 777
Topic Author
Posts: 2000
Joined: Thu Jan 27, 2000 2:56 pm

What Will Happen To Zip And Jazz If AC Liquidates?

Mon Apr 05, 2004 3:23 am

After months and months of bankruptcy protection, Air Canada already is going from bad to worse with a prime investor walking away and persistent union troubles. Not to mention that staggering debt load.

Now, what about Zip, the LCC subsidiary and Jazz the regional carrier? I believe they are separate companies from AC, although AC owns the both of them.

If AC should liquidate, which is becoming more likely with each passing day, what is going to happen with Jazz and Zip? Will they both be dragged down, throwing their pilots and staff out of work along with their mainline counterparts? Or will we see them grow into a viable international carrier, with Zip being the LCC as it always has, and Jazz into the mainline? However, I'm not sure if "Jazz" would be such a good name for an international carrier, IMO!

Please keep in mind that Tango does not exist anymore except as a fare class. I know a few of AC's planes are still painted in Tango colors, but that's to promote the low Tango fares.
 
CRJ 900
Posts: 547
Joined: Mon Mar 12, 2001 4:41 am

RE: What Will Happen To Zip And Jazz If AC Liquida

Mon Apr 05, 2004 3:28 am

Jazz is in the best position to take over....our contracts/pensions are done and we're ready to emerge from CCAA. We'll just take on some of their employees, slap them on the bottom of our lists and use some of their a/c. Indirectly AC would still be around although if that were to happen, seeing as how we own the Canadian Airlines name, I'm all for bringing it back to life.
 
Samurai 777
Topic Author
Posts: 2000
Joined: Thu Jan 27, 2000 2:56 pm

RE: What Will Happen To Zip And Jazz If AC Liquidates?

Mon Apr 05, 2004 5:52 am

Hmmm, that's interesting. It seems that Jazz and probably Zip have quite separate unions from the mainline, so that doesn't sound like such a bad thing.

If Jazz does own the name Canadian Airlines, you got my vote for bringing it back up, although I'm not sure if that would really happen!
 
CRJ 900
Posts: 547
Joined: Mon Mar 12, 2001 4:41 am

RE: What Will Happen To Zip And Jazz If AC Liquidates?

Mon Apr 05, 2004 7:43 am

AC owns the name CP and all the associated marketing brands that went with it when they bought it. I for one would be up for Jazz/ZIP merge and rename it Canadian Airlines or even Canadian Regional. I wish we had been sold to AA. Actually ZIP is operated by ACPA pilots and CUPE FAs so I could see it going as well. Jazz is ALPA/Teamsters, we have the best chance of survival.
 
astral
Posts: 151
Joined: Thu Mar 11, 2004 3:50 am

RE: What Will Happen To Zip And Jazz If AC Liquidates?

Mon Apr 05, 2004 12:10 pm

According to Canada's bankruptcy law, both Zip and Jazz are 'assets' of AC, thus once AC is liquidated, all its assets must be sold to pay off secured creditors. Thus both Zip and Jazz must be sold, there is no there choice.
For those logos (e.g. CP, PW etc.) owns by AC, they too can be sold if the bankruptcy trustee can find buyer at a good price. Remember the name Pan Am ? Which was sold a number of times and used by a few much smaller airlines, same with Braniff. So if you have money, would you like to own the logo of Canadi>n Airlines International ??
Jazz would have a brighter future. It is the only regional carrier, and still have a lot of good valuable routes. Without AC controlling its gates, slots, and service support, the new owner can make money easier with it, and further grow it. Both Zip, it is a lot worse. It is a low cost carrier in competition with Westjet and Jetsgo, and both may buy it and then kill it. Canjet may be interested in it so as to expand westward. However, if the union at Zip still maintain a higher cost than Westjet, Jetsgo and Canjet, then ----.
Another option is that the employees can buy out the airlines with an outside investor. This may save Zip, but it all depends on the mercy of the bankruptcy trustee. Once AC is liquidated, all future is in the hand of the trustee.

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