CrewBunk wrote:With regard to the Air Canada / Canadian Airlines acquisition, one has to look at the intent; namely, what did Air Canada want?
At the time, the Minister of Transport, David Collinette stated publicly (but really aimed at Air Canada) that if Canadian Airlines shut down, Air Canada would not “automatically” get Canadian’s international route authorities. Air Transat was public about wanting the South America routes, Canada 3000 the South Pacific, Royal had eyes on several European routes.
The only given was CP’s Asian routes. And, another fly in the ointment .... at the time NRT slots were the most valuable on the earth and CP had 6 daily slots. The Japanese Government stated that if CP shut down, the NRT slots would go back to them, and any new Canadian carrier would “get in line” to apply.
The only way AC could be assured all of CP’s international authorities, including the NRT slots was to buy all of CP, keep it going, and merge operations. THAT is what AC wanted, and that is what they got.
So look today. AC could easily have backed out of the Transat acquisition with minimal penalties. But they didn’t. So again, one has to ask ..... Why? What is on the table that they want?
It could be something as mundane as Transat’s fleet would fit nicely ..... to something more sinister. Keeping a well known Quebec company out of the hands of Westjet/Onex. Let’s face it, Westjet’s Quebec operations are pathetic at best. Give them a Quebec company, liked by québécois, and it would scare the crap out of AC!
Only those at AC’s board in YUL HQ, know for sure. We though, have front row seats. Get the popcorn.
Love this post. Popcorn in the microwave. Although I should be more biased and concerned as I am employed by of these companies hahahaha.