AIRLINE: I wish they'd put Airbus's on the Boston to Montreal route. I'm tired of being squished like a sardine. Mike Burris Cambridge, Mass, --- Mark Greenwood <mgreenwood@xxxxxxxxx> wrote: > 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 > __________________________________ Do you Yahoo!? Yahoo! Mail - 50x more storage than other providers! http://promotions.yahoo.com/new_mail