aircanada014
Posts: 1224
Joined: Sun Oct 09, 2005 2:24 pm

LH And UA Owns A Small Piece Of AC Since 2000

Sun Oct 09, 2005 3:00 pm

Hello all

Please bare with me I'm new to this posting a forum although I have been here just reading so many posts.  Confused Do you remember way back in early fall of 2000 when Air Canada bought out Canadian Airlines International with the help of United Airlines, Lufthansa and CIBC.

Allow me to refresh your memory. It was the take over bid of Air Canada versus American Airlines with the help of Onex Corp. Air Canada wants to take over Canadian Airlines while Onex owns a piece of Canadian also wants to take a piece of Air Canada and merge those two airlines together and have Air Canada join Oneworld however Lufthansa and United don't want to lose Air Canada and the membership of the Star Alliance,so they decided to join up with CIBC and buy some piece of the new Air Canada which will take over Canadian. In the agreement Air Canada cannot leave Star Alliance before 2007 or else pay hefty fines. I knew once they would buy Air Canada that Air Canada will not leave the alliance after the agreement expires after 2007 which means Air Canada is free to go but still will have to pay the penalty if they decide to leave the alliance. Do you think LH and UA still owns a piece of Air Canada or did they sell their shares? Sorry to make this post too long.

Off the topic I want to say this since now I'm a new member Air Canada will be the first major and legacy carrier to offer IFE with Audio and Video on demand on all wide bodies and narrow bodies jets including the regional jets except for 50 seater CRJ bombardier.
 
jetmatt777
Crew
Posts: 2896
Joined: Sun Jun 26, 2005 2:16 am

RE: LH And UA Owns A Small Piece Of AC Since 2000

Sun Oct 09, 2005 3:04 pm

Wow i ran into you in the Chat Room :by-the-way i didnt know that

Jetmatt777
Lighten up while you still can, don't even try to understand, just find a place to make your stand and take it easy
 
ac7e7
Posts: 656
Joined: Mon Oct 25, 2004 7:27 am

RE: LH And UA Owns A Small Piece Of AC Since 2000

Mon Oct 10, 2005 7:57 am

I thought it was 2009 where they couldn't leave Star Alliance, but I could be wrong. As for their shares, they were issued preferred shares. I don't think they are owners anymore (old AC shares, common and prefereed were retired), however their investment was not for nothing as the alliance between AC and those two airlines brought in more money then they invested in AC.
 
9252fly
Posts: 814
Joined: Thu Sep 22, 2005 7:19 am

RE: LH And UA Owns A Small Piece Of AC Since 2000

Mon Oct 10, 2005 8:07 am

I can see this tread turning into a great debate as to whether AC bought out CP,or was it a merger of the two carriers? On the surface,AC won the bidding war. The rest is history.
 
aircanada014
Posts: 1224
Joined: Sun Oct 09, 2005 2:24 pm

RE: LH And UA Owns A Small Piece Of AC Since 2000

Mon Oct 10, 2005 3:19 pm

I believe AC bought CP and merged them together. AC7E7 I think you are alright I think it was 2009 instead of 2007 I couldn't remember.
 
ac7e7
Posts: 656
Joined: Mon Oct 25, 2004 7:27 am

RE: LH And UA Owns A Small Piece Of AC Since 2000

Mon Oct 10, 2005 4:18 pm

Quoting 9252fly (Reply 3):
I can see this tread turning into a great debate as to whether AC bought out CP,or was it a merger of the two carriers? On the surface,AC won the bidding war. The rest is history.

Air Canada ended up purchasing Canadian Airline's parent company (which was Canadian Airlines Corporation - which used to be PWA), brought it through CCAA restructuring to reduce debt, then merged the carrier into Air Canada.