Air Canada T.AC

RE:RE:Airline Investor & OTB comments?

[fraudhunter]

And this makes Sense

OnTheBalance wrote:

Hello Invinceableone, I had posted a brief addition to another poster's post earlier today. Am personally very comfortable with this announcement from AC. Firstly, I trust AC Management team and the board to make best decisions for stakeholders. In this case, it is the best choice for shareholders and for AC's employees, even those furloughed. Besides the obvious points such as Transat requiring more cash, and more concessions demanded by EU (which means other sacrifices that would take away from AC's overall recovery and future growth strategy), I have been quite concerned that the concessions to Quebec based office requirements  and employees was an unnecessary part of the deal. Why should Transat employees have more security over AC employees? As an AC shareholder, I want the companies to look after its own employees first. Combining two corporate cultures can result in bad outcomes. And in today's aircraft market, AC can pick up any aircraft  they want at reasonable pricing, so Transat wings didn't mean much. Transat will have a tough slog without a modern Booking system. Their ability to price products with timelines out 6, 9 and 12 months is very poor. They were selling many of their products at incorrect pricing. Poor margins. A business can never survive like this. PKP, or QC government can throw some cash, but cannot solve airline industry specific problems. It will be a black hole that sucks funds. Not even Westjet has the best tools to help resolve this for Transat.  So if AC couldn't pick up all of the Transat routes in the purchase, it makes sense to part ways. I think AC with its know how, and its Aeroplan 2, can organically advance its own business into the dying Transat wake. Am glad that AC did not have to lock itself into various Canada and QC conditions, and lose its flexibility.. it is its real strength. 

Also am convinced that AC had already made up its mind a few weeks ago, but lobbed this info out on Good Friday with purpose. Think the Feds and the QC politicians must be feeling crucified. And, quite a few AC employees are feeling relieved. They come first. And shareholders should be pleased in getting rid of unnecessary uncertainties, during recovery.