Bad service? Mark -----Original Message----- From: The Airline List [mailto:AIRLINE@xxxxxxxxxxxxxxxxx] On Behalf Of Matthew Montano Sent: August 18, 2004 4:56 PM To: AIRLINE@xxxxxxxxxxxxxxxxx Subject: Re: SFGate: Air Canada's creditors overwhelmingly approve restructuring plan Well, I'll be.... Reading into the details that have been released, it appears that the rabbit is being pulled out a hat on this one. - Labour costs seem to have been brought in line - Routes have been rationalized - Fleet is thoroughly rationalized - Load-factors are through the rough - While their domestic competition is growing, the market appears to be growing even faster - US based competition has a low priority of AC's US routes - I understand the international routes, especially for US originations is doing extremely well What could derail AC now? http://www.redmac.ca - Your Source for Macintosh Enhancements in Canada http://www.justaddanoccasion.com - Anytime gifts and momentos with a west-coast flair On 17-Aug-04, at 3:18 PM, Bill Hough wrote: > =20 > ---------------------------------------------------------------------- > This article was sent to you by someone who found it on SFGate. > The original article can be found on SFGate.com here: > http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/ > 08/17/f= > inancial1259EDT0113.DTL > --------------------------------------------------------------------- > Tuesday, August 17, 2004 (AP) > Air Canada's creditors overwhelmingly approve restructuring plan > > > > (08-17) 11:07 PDT MONTREAL (AP) -- > Air Canada's creditors voted overwhelmingly on Tuesday to approve a > restructuring plan, paving the way for the airline's emergence from > bankruptcy-court shelter after more than a year. > The vote was 99.6 percent in favor, the Montreal-based airline > announced after a special meeting. > "The strong support for Air Canada's restructuring plan received > from creditors today is appreciated," chief executive Robert Milton > said. > "This positive response from creditors represents by far the most > critic= al vote of confidence in the strength of our business plan and > the airline's prospects going forward," Milton said. > The airline plans to emerge from creditor protection on Sept. 30, > after approval by the court overseeing its restructuring at a hearing > scheduled for Aug. 23 in Toronto. > In June, Air Canada accepted an approximately $183 million > investment proposal from New York firm Cerberus Capital Management for > a 9.2 percent stake in the airline. The investment came atop an equity > offering of about > $621 million to be underwritten by Deutsche Bank. > The plan will see creditors receive just pennies on the dollar for > their debts. Air Canada, which has been operating under creditor > protection since April 1, 2003, has said potential claims were > whittled down from > $78 > billion to as little as $6.1 billion. > The airline estimated that if total claims were $7.5 billion, > creditors would recover about 9.25 cents for every dollar owed. But > the main value for the creditors will be in the equity they will > receive in the restructured airline. That may be worth plenty if Air > Canada's business plan succeeds. > As part of its restructuring plan, the new Air Canada holding > company plans to establish several of its units as stand-alone > businesses. > In addition to regional subsidiary Jazz and online travel business > Destina, which are already established as on their own, Air Canada > plans to spin off its technical services, cargo and ground handling > operations into separate businesses or limited partnerships. > The company is forecasting operating profits of $823 million on > revenue = of > $6.6 billion for 2004, and $1.2 billion on $6.8 billion in revenue in > 2005. > But it now has to deal with soaring fuel prices. In reporting the > second-quarter results this month, Air Canada said fuel costs rose 28 > percent from a year earlier to $281 million. > > > ---------------------------------------------------------------------- > Copyright 2004 AP