RE: RE: What the Moody's Caa1 rating means Like another poster here, I'm watching for managment changes as an entry point. Look at the history of Air Canada and ACE since CCAA in 2003, and you'll understand why AC is in the financial shape it's in; as well as the emplyoee's pensions.
Cerberus and Duetsch Bank provided DIP financing for AC in 2003 and created ACE. Under ACE's umbrella was many "new company's" - AC mailine, Jazz, Aeroplan, etc... The DIP financers de-capitalized AC mainline primarily through the JAZZ income trust - to the tune of $4 Billion as of 2012! AC mailibe would actually be an incredibly vaiable airline if this didn't take place. Don't get me wrong, many wonderful things/changes took place to make AC a much more competetive airline after the 2003 restructuring; all those changes where for not due to the raping of AC mailne by ACE (forgive the hyperbole).
For what it's worth, the starting salary for an AC pilot is $39000/yr. West Jet pilots make more than AC pilots for flying simpilar aircraft type and destinations (AC's A319/320 and EMB compared with WJ's B-737). Yes, the highest paid AC pilots make over 230k/yr, but compared to simliar airline/fleet types etc... AC pilots are right at the median for their pay scale, and by many measures are far more productive then most other mainline pilot groups.
AC mainline doesn't need an LCC or any other such nonsense, it desparately needs an upper managment suite that's interested in building a word class airline, not an ATM for hedge funds. Until that changes, I'm out of this stock.
Cheers, and GLTA!