BDL2DCA
Posts: 309
Joined: Wed Jan 11, 2006 7:46 am

RE: AC Sells 35% Of Its US Stake

Tue Apr 11, 2006 6:38 am

Wow, ACE made a pretty penny on those shares. I bet there are some champagne corks popping in Montreal with that sale.
146,319,320,321,333,343,722,732,733,734,735,73G,738,744,752,762,763,772,ARJ,BE1,CRJ,D9S,D10,DH8,ERJ,E70,F100,S80
 
airwave
Posts: 1105
Joined: Tue Mar 21, 2006 3:42 am

RE: AC Sells 35% Of Its US Stake

Tue Apr 11, 2006 7:09 am

Interesting news. Glad to hear AC made a tidy little profit for themselves.

Quote:
Following completion of the transaction which is expected to occur on April 13, 2006, and in accordance with the terms of the original Stockholders Agreement entered into between ACE and US Airways, ACE Chairman, President and CEO Robert Milton will resign from the Board of Directors of US Airways in the near future.

Any indications or reports on who will replace him? Or will US use this opportunity to shrink the board a bit?

Airwave  eyebrow 
When you do things right, people won't be sure you've done anything at all.
 
aircanada014
Posts: 1224
Joined: Sun Oct 09, 2005 2:24 pm

RE: AC Sells 35% Of Its US Stake

Tue Apr 11, 2006 8:16 am

Thats awesome for AC.. I hope they can sell more later for a good profit just like they did when they bought CO and sold their shares for nice profit return.
 
flydreamliner
Posts: 1928
Joined: Sat Jan 07, 2006 7:05 am

RE: AC Sells 35% Of Its US Stake

Tue Apr 11, 2006 8:43 am

Congrats to AC! I wish AC would all together buy out an American carrier, or form their own American presence. They are the best north american airline i've ever flown (CO gets honorable mention though)
"Let the world change you, and you can change the world"
 
AC787
Posts: 330
Joined: Sun Mar 13, 2005 10:25 am

RE: AC Sells 35% Of Its US Stake

Tue Apr 11, 2006 9:43 am

Thats quite impressive, selling 35% of there stake and recovering 90% of there initial investment. I can only hope to be so lucky when i start investing seriously.

AC787
 
airwave
Posts: 1105
Joined: Tue Mar 21, 2006 3:42 am

RE: AC Sells 35% Of Its US Stake

Tue Apr 11, 2006 10:21 am

Quoting AC787 (Reply 5):
Thats quite impressive, selling 35% of there stake and recovering 90% of there initial investment. I can only hope to be so lucky when i start investing seriously.

 checkmark  Wouldn't that be nice? The trick is to not turn around and lose it all before it clears, lol.

So I guess AC is just gonna hang on to the rest of that stake for a while, then? Here's hoping LCC doesn't bomb any time soon. I personally would *hate* to see Americans screw over Canada(ians) like that.

Airwave  eyebrow 
When you do things right, people won't be sure you've done anything at all.
 
aircanada014
Posts: 1224
Joined: Sun Oct 09, 2005 2:24 pm

RE: AC Sells 35% Of Its US Stake

Tue Apr 11, 2006 10:26 am

I would like to see AC buy CO again and buy UA. Thats twice so far for AC.
Can you imagine if AC buys CO again? You know would be interesting if AC buys Boeing company? what do you think about it. I know it won't happen but can you imagine?.
 
Olympus69
Posts: 1571
Joined: Sat Jun 15, 2002 11:21 pm

RE: AC Sells 35% Of Its US Stake

Tue Apr 11, 2006 12:33 pm

Quoting AirCanada014 (Reply 3):
Thats awesome for AC.. I hope they can sell more later for a good profit just like they did when they bought CO and sold their shares for nice profit return.

As I recall, AC had a fair sized chunk of CO - something like 20% wasn't it?
 
ac7e7
Posts: 655
Joined: Mon Oct 25, 2004 7:27 am

RE: AC Sells 35% Of Its US Stake

Tue Apr 11, 2006 1:02 pm

Quoting Olympus69 (Reply 8):
As I recall, AC had a fair sized chunk of CO - something like 20% wasn't it?

I believe it was 24%

Quoting AirCanada014 (Reply 7):
I would like to see AC buy CO again and buy UA.

Don't think CO is the right fit for ACE right now, but UA is absolutely not of any interest. In my opinion, ACE invested in US Airways not only because of the maint. contract, but because UA's potential demise would have been a setback for Star Alliance in North America. US Airways is in far better shape then UA is today, even after 3 years in chap 11.

I still wish UA the best, however their recovery plan is based on $50 oil, not to mention the excessive amount of debt that still remains on their books. That airline is one disaster away from another chapter 11 filing. After three years of court protection, I would have expected much less debt and a realistic outlook on oil prices. That's the problem when you get to be that big an airline... it is more difficult to cut the fat then it is for a smaller airline... or any company for that matter.
 
CRJ900
Posts: 1940
Joined: Wed Jun 02, 2004 2:48 am

RE: AC Sells 35% Of Its US Stake

Tue Apr 11, 2006 7:58 pm

Quoting AC7E7 (Reply 9):
I still wish UA the best, however their recovery plan is based on $50 oil, not to mention the excessive amount of debt that still remains on their books.

Seriously? That's a bit naive, isn't it? I find US carriers to have a slightly warped view on things... "workers' unions are our worst enemy but the oil companies are our friends"...

Oil companies are not doing charity work, they are in it for the money. With demand growing at breakneck speed and supply becoming more scarce, the oil companies will charge top dollar and they are now raking in enormous amounts of money. They're laughing all the way to the bank today and have every intention of doing so tomorrow as well... oil prices will remain high until a serious competitor emerges (bio fuel, water, whatever).

Airlines should realistically base fuel prices on $75-80/barrel.
Come, fly the prevailing winds with me
 
User avatar
SLCUT2777
Posts: 3407
Joined: Sun Jan 01, 2006 12:17 am

RE: AC Sells 35% Of Its US Stake

Tue Apr 11, 2006 11:40 pm

Quoting AirCanada014 (Reply 3):
Thats awesome for AC.. I hope they can sell more later for a good profit just like they did when they bought CO and sold their shares for nice profit return.

Perhaps DL is their next target when they emerge late this year or early next! If the pilots don't screw things up first!
DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
 
ac7e7
Posts: 655
Joined: Mon Oct 25, 2004 7:27 am

RE: AC Sells 35% Of Its US Stake

Wed Apr 12, 2006 12:08 am

Quoting CRJ900 (Reply 10):
Oil companies are not doing charity work, they are in it for the money. With demand growing at breakneck speed and supply becoming more scarce, the oil companies will charge top dollar and they are now raking in enormous amounts of money.

Of course they are in it for the money, but oil is a traded commodity. As long as oil prices remain high on the markets, everybody will pay more for it. It has nothing to do with oil companies being cozy with the airlines. Oil is a huge expense for carriers.

Quoting CRJ900 (Reply 10):
Airlines should realistically base fuel prices on $75-80/barrel.

Agreed, UA should have based their recovery plan on such prices....but then they never would have exited chapter 11 because there is no way for them to make money when oil costs that much.
 
ouboy79
Posts: 4111
Joined: Sun Nov 18, 2001 1:48 pm

RE: AC Sells 35% Of Its US Stake

Wed Apr 12, 2006 12:49 am

Quoting SLCUT2777 (Reply 11):
Perhaps DL is their next target when they emerge late this year or early next! If the pilots don't screw things up first!

DL has no value to ACE, except the fact they compete with LCC and UAL. I'm sure ACE (and the rest of Star) would enjoy seeing DL flop.
 
ac7e7
Posts: 655
Joined: Mon Oct 25, 2004 7:27 am

RE: AC Sells 35% Of Its US Stake

Wed Apr 12, 2006 1:09 am

Quoting Ouboy79 (Reply 13):
I'm sure ACE (and the rest of Star) would enjoy seeing DL flop.

They may be competitors, but ACTS has a major maintenance contract with DL. If DL entered chap 7, ACE's ability to spin off ACTS at its full value would be greatly reduced.
 
User avatar
SLCUT2777
Posts: 3407
Joined: Sun Jan 01, 2006 12:17 am

RE: AC Sells 35% Of Its US Stake

Wed Apr 12, 2006 2:00 am

Quoting AC7E7 (Reply 14):
They may be competitors, but ACTS has a major maintenance contract with DL. If DL entered chap 7, ACE's ability to spin off ACTS at its full value would be greatly reduced.

My point exactly. That said however I don't think AC would mind seeing the demise of SkyTeam and the ability to nab a few orphaned carriers, DL in particular if they are one of the survivors.
DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
 
User avatar
PA110
Posts: 1897
Joined: Sat Dec 06, 2003 1:30 am

RE: AC Sells 35% Of Its US Stake

Wed Apr 12, 2006 2:15 am

Quoting FlyDreamliner (Reply 4):
Congrats to AC! I wish AC would all together buy out an American carrier, or form their own American presence. They are the best north american airline i've ever flown (CO gets honorable mention though)

Oh great, that's just what U.S. carriers need! AC holds a virtual monopoly and still can't manage to turn a profit.  sarcastic 
It's been swell, but the swelling has gone down.
 
Olympus69
Posts: 1571
Joined: Sat Jun 15, 2002 11:21 pm

RE: AC Sells 35% Of Its US Stake

Wed Apr 12, 2006 2:39 am

Quoting PA110 (Reply 16):
Oh great, that's just what U.S. carriers need! AC holds a virtual monopoly and still can't manage to turn a profit.

Not true. AC had a net profit of C$258 million for 2005.
 
accargo
Posts: 576
Joined: Sun Sep 26, 2004 10:19 pm

RE: AC Sells 35% Of Its US Stake

Wed Apr 12, 2006 2:50 am

Quoting Olympus69 (Reply 17):
Not true. AC had a net profit of C$258 million for 2005.

Save your breath, there will always be those that think they know it all when in fact they haven't got a clue.
 
ac7e7
Posts: 655
Joined: Mon Oct 25, 2004 7:27 am

RE: AC Sells 35% Of Its US Stake

Wed Apr 12, 2006 3:07 am

Quoting SLCUT2777 (Reply 15):
That said however I don't think AC would mind seeing the demise of SkyTeam and the ability to nab a few orphaned carriers, DL in particular if they are one of the survivors.

Star already has US and UA representing them in the U.S. Unless UA went under, I doubt Star Alliance is would add another carrier.
 
HanginOut
Posts: 521
Joined: Sun May 29, 2005 3:24 am

RE: AC Sells 35% Of Its US Stake

Wed Apr 12, 2006 5:45 am

Quoting AC7E7 (Reply 19):
Star already has US and UA representing them in the U.S. Unless UA went under, I doubt Star Alliance is would add another carrier.

You're right, but it would be nice to see CO in Star Alliance. Other than the scenario you described, the only way for them to join would be if they merged with UA or US (I'd put my money on UA).
Dreaming of the day I can work for an airline
 
yow
Posts: 2125
Joined: Sun Jun 03, 2001 2:47 pm

RE: AC Sells 35% Of Its US Stake

Wed Apr 12, 2006 11:22 pm

Quoting AC7E7 (Reply 19):
Star already has US and UA representing them in the U.S. Unless UA went under, I doubt Star Alliance is would add another carrier.



Quoting HanginOut (Reply 20):
You're right, but it would be nice to see CO in Star Alliance. Other than the scenario you described, the only way for them to join would be if they merged with UA or US (I'd put my money on UA).

The Star members' constitution states a max. of 2 airlines per country are permitted to join, so unless US or UA go Ch.7 you won't be seeing CO in Star, plus, why would CO want to leave Skyteam?

Back in the early days of alliances AC & CO were quite cozy.
 
lh477
Posts: 567
Joined: Wed Jan 07, 2004 11:23 am

RE: AC Sells 35% Of Its US Stake

Thu Apr 13, 2006 9:00 am

Nice to see AC making a tidy profit. They are flush with $$$, I can imagine more of this ownership stakes. One airline in this discussion not being metioned is NW.
Come on you gunners......!!!!!
 
hiflyer
Posts: 1270
Joined: Wed Nov 24, 2004 1:38 am

RE: AC Sells 35% Of Its US Stake

Thu Apr 13, 2006 9:55 am

Possibly...just possibly...you may be seeing less of an investment in US by AC due to US may not remain in Star long term....and I think it is more US believing they can do better than staying as the #2 united states carrier in Star.
 
ac7e7
Posts: 655
Joined: Mon Oct 25, 2004 7:27 am

RE: AC Sells 35% Of Its US Stake

Fri Apr 14, 2006 12:23 am

Quoting Hiflyer (Reply 23):
Possibly...just possibly...you may be seeing less of an investment in US by AC due to US may not remain in Star long term....and I think it is more US believing they can do better than staying as the #2 united states carrier in Star.

I doubt it. Where else would they go? US Airways needs strong partners if it is going to survive, especially in the U.S. market. TWA tried to remain on its own and that didn't get them very far.

I think we will see ACE and US Airways actually get closer over time, despite ACE's sale of LCC shares.

Who is online

Users browsing this forum: AVLAirlineFreq, Baidu [Spider], Ceamajay, dc10lover, flyinryan99, Google Adsense [Bot], Hamlet69, ikolkyo, johnberg, josepha1, KFLLCFII, nikeherc, nikeson13, ORDFlyer99, prchan, Sevensixtyseven, SFOtoORD, SInGAPORE_AIR, sparky35805, Tugger, yblaser and 367 guests