Ottawa eyes Air Canada pension moratorium extension
Nov 6, 2014, 7:39 pm
#61
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Air Canada may opt out of government lifeline as pension surplus grows
http://business.financialpost.com/20...surplus-grows/
In early 2013, when Air Canada’s pension was deep in the red, the airline signed an agreement with the federal government that gave it more time to cover the shortfall. In exchange, executive compensation was frozen at the rate of inflation and dividends and share buybacks were prohibited.
Mr. Rousseau said the airline will decide early next year whether it will opt out of that agreement now that its pension plan is back in the black, potentially opening the door for new treats for shareholders.
In early 2013, when Air Canada’s pension was deep in the red, the airline signed an agreement with the federal government that gave it more time to cover the shortfall. In exchange, executive compensation was frozen at the rate of inflation and dividends and share buybacks were prohibited.
Mr. Rousseau said the airline will decide early next year whether it will opt out of that agreement now that its pension plan is back in the black, potentially opening the door for new treats for shareholders.
Nov 6, 2014, 8:53 pm
#62
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Air Canada may opt out of government lifeline as pension surplus grows
" Only two years ago, Air Canada’s pension plan was a millstone that threatened to send it into bankruptcy court for the second time in a decade. But today it has become so healthy that the airline may opt out of an agreement with Ottawa that forbids investor payouts.
Air Canada reported a small pension surplus at the beginning of 2014, a dramatic turnaround from the $3.7-billion deficit a year earlier. And that surplus has continued to grow throughout the year despite lower interest rates, said chief financial officer Michael Rousseau.
"
http://business.financialpost.com/20...surplus-grows/
Air Canada reported a small pension surplus at the beginning of 2014, a dramatic turnaround from the $3.7-billion deficit a year earlier. And that surplus has continued to grow throughout the year despite lower interest rates, said chief financial officer Michael Rousseau.
"
http://business.financialpost.com/20...surplus-grows/
May 26, 2015, 7:43 pm
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Air Canada Sees Buyback Up to 10 Million Shares on Pensions Exit
"Air Canada opted out of a pension agreement with the federal government, a potential savings of about C$310 million ($248 million) in the next two years, and announced plans to repurchase as many as 10 million shares.
The buyback will target about 3.5 percent of Air Canada’s stock outstanding, the Montreal-based carrier said Tuesday in a statement. The carrier will make pension solvency payments of C$90 million in 2015, and none next year. Air Canada’s projection for 2016 assumes “similar market conditions to the current environment.”
Source: http://www.bloomberg.com/news/articl...-pensions-exit
The buyback will target about 3.5 percent of Air Canada’s stock outstanding, the Montreal-based carrier said Tuesday in a statement. The carrier will make pension solvency payments of C$90 million in 2015, and none next year. Air Canada’s projection for 2016 assumes “similar market conditions to the current environment.”
Source: http://www.bloomberg.com/news/articl...-pensions-exit
Last edited by tcook052; May 26, 2015 at 8:00 pm
May 27, 2015, 7:38 am
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May 27, 2015, 8:50 am
#67
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May 27, 2015, 11:22 am
#69
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And relatively recently AC's market cap exceeded WS's for the first time in a very long time. Now $500M higher. Investors seem to like what's happening at most airlines, but some more than others...
May 27, 2015, 11:39 am
#70
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well, and also anacott steel too...
yes, kind of helps with your major expense that you still grease people for with a YQ charge tanks and your cost gets reduced by 30% give or take depending on how well you hedged, or really, how well you did not so you could take advantage of the drop more.
Last edited by tcook052; May 27, 2015 at 11:52 am
May 27, 2015, 11:47 am
#71
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As a matter of fact, I do not like companies that hedge too much of their costs (be it an airline with fuel costs, or a gold producer with gold prices).
It means that they are starting to speculate with commodity prices, and I don't want them to do it.
As an investor, I can hedge against commodity prices myself, and sometimes cheaper than they can.
I prefer companies that focus on optimizing their operations, instead of "well hedge this cost and hope things go right".
You probably made the best decision for yourself considering the circumstances at the time.
People that regret their decisions tend to take riskier moves in the future, and you don't want to be "that guy".
May 27, 2015, 1:49 pm
#72
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Never kick yourself for "missing out" on a stock value increase.
You probably made the best decision for yourself considering the circumstances at the time.
People that regret their decisions tend to take riskier moves in the future, and you don't want to be "that guy".
You probably made the best decision for yourself considering the circumstances at the time.
People that regret their decisions tend to take riskier moves in the future, and you don't want to be "that guy".
May 27, 2015, 3:50 pm
#73
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May 27, 2015, 9:39 pm
#74
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How Air Canada turned its pension around
http://www.thestar.com/business/econ...on-around.html
Just a few years ago, Canadian companies were facing staggering pension shortfalls, well into the billions.
But thanks to better returns from both stock and bond markets, many of those deficits have shrunk or are wiped out completely.
Air Canada went from a $4.2 billion pension solvency deficit in 2012 that threatened the company’s future, raising concerns about another trip to bankruptcy court, to a $1.2 billion surplus as of this month.
Just a few years ago, Canadian companies were facing staggering pension shortfalls, well into the billions.
But thanks to better returns from both stock and bond markets, many of those deficits have shrunk or are wiped out completely.
Air Canada went from a $4.2 billion pension solvency deficit in 2012 that threatened the company’s future, raising concerns about another trip to bankruptcy court, to a $1.2 billion surplus as of this month.
May 27, 2015, 9:49 pm
#75
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-$4.2B to +1.2B? that's $5.4B turnaround? am I reading it right? REALLY?
Doing better than CPP/OMERS/etc?
Will government/taxpayers get anything back from the "investments"? ha ha
Doing better than CPP/OMERS/etc?
Will government/taxpayers get anything back from the "investments"? ha ha
Air Canada went from a $4.2 billion pension solvency deficit in 2012 that threatened the company’s future, raising concerns about another trip to bankruptcy court, to a $1.2 billion surplus as of this month.
That’s a huge jump from $89 million at Jan. 1, 2014, and $660 million as at Jan. 1, 2015.
That’s a huge jump from $89 million at Jan. 1, 2014, and $660 million as at Jan. 1, 2015.