If the rumours are to be believed, Cerberus is waiting in the wings. = There is also talk of Onex & Texas Pacific making a joint bid. Wouldn't it be Robert Milton's worst nightmare to wake up one morning and find out that Gerry Schwartz is his new boss. There is also a rumour of a triumvirate = of the large pension funds making a bid. The Ontario Teachers already own Worldspan, why not throw an airline into the mix. I wonder how the = pension funds will handle the pension issue since it seems to be a sticking = point. I wouldn't count AC out just yet. Mark -----Original Message----- From: The Airline List [mailto:AIRLINE@xxxxxxxxxxxxxxxxx] On Behalf Of Matthew Montano Sent: April 6, 2004 8:21 AM To: AIRLINE@xxxxxxxxxxxxxxxxx Subject: Air Canada -- Now what? Interesting scenario Air Canada is in. - Pension liabilities still remain significant - Labour costs are still high - Organization looking to obtain 35% of the company for $650M walks away - GE Capital indicates they won't ante-up any more - Competitive pressure is continuing to mount - Government will not put up cash - Court has indicated that the leash is short on the time remaining for creditor protection Throwing in the towel, while probably the best option, would land the = entire executive in breach of their fiduciary duties. So we get to watch them flounder like a fish out of water. What are the options? 1) Dramatic labour reforms & concessions but path forward remains the = same 2) Orderly Liquidation a) Major assets acquired by WestJet/Jetsgo and other operators. Major operations changes. b) Major assets acquired by a NewCo, operations virtually = unchanged. c) Assets scattered, Canadian government permits cabotage and foreign carriers to cover international routes until Canadian airline reapplies for routes. What could happen? Matthew