|Quoting Pnwtraveler (Reply 3):|
There are unsubstantiated rumours of Jazz buying new CRJ200's to replace the older 100's and some Dash aircraft, Q400 to replace some of the older Dash aircraft etc. etc. But with Jazz up for sale it may be pretty unrealistic to be purchasing new aircraft at this point.
I can't see why Jazz would want new build CRJ200's when they are readily available from lessors/owners that currently have them in storage at attractive rates. Jazz will need to replace those Dash 8 100's as they are getting very old. Considering that they are 37 seat aircraft,one would think that an order for the DH8 300 with 50 seats would make sense since the pilots get paid the same no matter what aircraft they fly. Mind you,I would really like to see the DH8 400 added to the fleet,then again,I'm not holding my breath.
|Quoting CRJ900 (Reply 5):|
Will Jazz be difficult to sell? I'm assuming that AC will place restrictions on routes the new owner can fly, and flight crews will want to keep their current benefits and agreements...?
Nothing is too difficult to sell at the right price. Considering the initial IPO was $10.00,the upcoming sale will be priced at about $7.50. Hardly impressive to the original buyers! ACE
current holding is 49% and will drop to 20.1% after the current share offering(Same 20.1% applies to Aeroplan). Air Canada has a CPA(Capacity Purchase Agreement) with Jazz to provide lift at a predetermined ASM until about 2015 and all conditions remain the same,except for the rumoured renegotiation of the rates next year. Those rates are likely to go down rather than up,putting further pressure on the Jazz Income Fund share price.
has holdings in Jazz,Aeroplan and ACTS(recently monetized through a majority sale to a private equity firm). With the unwinding of ACE
by next spring,it will be rather interesting to see how Air Canada will be structured. Will they take control of the minority 20.1% holdings. This is all a prelude to 2009 and the implications of having to renegotiate all those union contracts. I would say that the AC
is likely to be in a rather pleasant position as the new owners will have to bargain with all those units that were monetized.