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Air Canada T.AC

Alternate Symbol(s):  ACDVF

Air Canada is an airline company. The Company is a provider of scheduled passenger services in the Canadian market, the Canada-United States (U.S.) transborder market and the international market to and from Canada. It provides scheduled service directly to more than 180 airports in Canada, the United States and internationally on six continents. The Company’s Aeroplan program is Canada's premier travel loyalty program, where members can earn or redeem points on the airline partner network of 45 airlines, plus through a range of merchandise, hotel and car rental rewards. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using its passenger and freighter aircraft. Its Air Canada Vacations is a tour operator, which is engaged in developing, marketing, and distributing vacation travel packages in the outbound/inbound leisure travel market. Air Canada Rouge is Air Canada's leisure carrier.


TSX:AC - Post by User

Post by logicandinertiaon May 04, 2020 9:30am
289 Views
Post# 30982828

Tricky - all up to duration of downturn

Tricky - all up to duration of downturn

Announced on call .  Burning $20 million per day , which equates to about $1 per share every 13 days.   They are raising debt , which is good, but that debt needs to be repaid so the capital structure adjusts.  


Calin mirrored Buffet's  concerns when he confirmed that the airline will be considerably smaller for next few years .   Hence, you have fewer revenue and profit generating assets, but your debt doesn't disappear .   Moreover, when will the lucrative business travel biz recover ?   That is the most profitable .   And calin stated that this will recover later and videoconferencing may impact this.  


The equity capital is the one piece of the capital structure that is adjusted dynamically to the environment , as debt levels don't change (debt levels are actually going up as they issues more).   

Be careful out there.   This is a whole new world.  

 

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