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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

Bullboard Posts
Post by jdc1on May 04, 2012 9:56am
269 Views
Post# 19870895

ACE's damaging legacy

ACE's damaging legacy

A great example of this is AVEOS. This was the "heavy maintainence" division of AC mainline prior to CCAA in 2003. Under ACE, it was carved away from the main airline in hopes of being sold. All the profits of which would have gone to the share holders of ACE, to be distributed accordingly. Instead, no one in the industry bought it, because they new what it really was.... still a division of AC mainline.

Now 9 years later, AVEOS goes bankrupt, 2000+ skilled Canadian engineers are out of work, and AC mainline has had to take a $120 million right-off (AC could have bought back AVEOS for MUCH less then $120 million today - but that would have ruined ACE's grand plans). AC is currently ferrying B-777's EMPTY to Hong kong and Singapore and EMB's empty to South America to have heavy maintainence done on them that AVEOS was doing in Canada. For some perspective, a B-777 burns as much fuel to fly to Hong Kong as a 6 normal sized sedans would use in 10 years.

Until the chickens of ACE stop coming home to roost, AC mainline is nackered.

Bullboard Posts