Merger US/HP/AC
Apr 28, 2005, 6:27 am
#1
Original Poster
Join Date: Aug 2004
Location: RIC
Programs: AA Plat, HH Gold
Posts: 296
Merger US/HP/AC
The latest is Air Canada is talking to US and HP about a merger???? Here is the article: http://www.thestar.com/NASApp/cs/Con...acodalogin=yes
Who knows what will happen???
Who knows what will happen???
Last edited by RICflyer; Apr 28, 2005 at 6:58 am Reason: spelling
Apr 28, 2005, 6:38 am
#2
Join Date: Jun 2003
Location: Athens, WV, USA; a US cockroach long before it was in FFOCUS; now a lowly US5 for only the 2nd time in 20 years.
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Posts: 3,050
A snip from the article...
"Milton also said during a conference call that the airline never sought from Boeing any assurances that parts and equipment would be made in Canada. He also didn't dismiss speculation brewing on Wall Street that Air Canada may be involved in coming months in a merger, possibly with regional airline America West Airlines, which has confirmed merger talks with U.S. Airways.
A Wall Street source said yesterday that Air Canada may be in talks with both U.S. Airways and America West in a deal that may see Air Canada take on international traffic with the U.S. Airways-America West concern handling domestic U.S. traffic.
"Consolidation in the North American industry is inevitable," Milton said. "To the extent Air Canada is or isn't part of that is yet to be determined." "
"Milton also said during a conference call that the airline never sought from Boeing any assurances that parts and equipment would be made in Canada. He also didn't dismiss speculation brewing on Wall Street that Air Canada may be involved in coming months in a merger, possibly with regional airline America West Airlines, which has confirmed merger talks with U.S. Airways.
A Wall Street source said yesterday that Air Canada may be in talks with both U.S. Airways and America West in a deal that may see Air Canada take on international traffic with the U.S. Airways-America West concern handling domestic U.S. traffic.
"Consolidation in the North American industry is inevitable," Milton said. "To the extent Air Canada is or isn't part of that is yet to be determined." "
Apr 28, 2005, 6:56 am
#3
Join Date: Mar 2002
Location: YYJ
Posts: 4,137
See also the discussion about this on the AC forum: http://www.flyertalk.com/forum/showthread.php?t=425840
Apr 28, 2005, 8:48 am
#5
Join Date: Jan 2003
Programs: American Airlines Platinum, National Executive
Posts: 3,790
I thought there's just a maximum stake in US airlines that foreign entities can have. Perhaps NAFTA has some special treatment for Canadian/Mexican entities (well maybe hopefully not; I don't want to become an AeroMexico or whatever frequent flyer anytime soon).
Apr 28, 2005, 10:05 am
#8
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Well, if these three do merge, it will be very interesting to see what happens with Dividend Miles. Air Canada's AeroPlan program is not particularly customer friendly from everything I've read. If they get involved, the value of dividend miles is likely to drop. Of course the alternative, no more dividend miles, is far less appealing.
Apr 28, 2005, 5:04 pm
#9
Join Date: Apr 2001
Location: PIT/DFW/MEL; AA Exec. Platinum & 4MM, QF WP
Posts: 7,689
Originally Posted by NYCommuter
I thought there's just a maximum stake in US airlines that foreign entities can have. Perhaps NAFTA has some special treatment for Canadian/Mexican entities (well maybe hopefully not; I don't want to become an AeroMexico or whatever frequent flyer anytime soon).
Apr 28, 2005, 6:29 pm
#10
Join Date: Nov 2002
Location: Boynton Beach, FL, USA
Posts: 720
Originally Posted by MileKing
Well, if these three do merge, it will be very interesting to see what happens with Dividend Miles. Air Canada's AeroPlan program is not particularly customer friendly from everything I've read. If they get involved, the value of dividend miles is likely to drop. Of course the alternative, no more dividend miles, is far less appealing.
Apr 28, 2005, 9:51 pm
#11
Join Date: Mar 2002
Location: YYJ
Posts: 4,137
Originally Posted by TravelScholar
My thoughts, exactly. I'd much rather see US & HP without Air Canada and it's ErrorPlan programme influence.
Apr 29, 2005, 11:01 am
#12
Join Date: Apr 2002
Location: SWF
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Posts: 492
Not necesserally a merger, but the article just said a "Deal". I bet its more of a code share agreement with a consolidated US/HP than a merger.
Originally Posted by RICflyer
The latest is Air Canada is talking to US and HP about a merger???? Here is the article: http://www.thestar.com/NASApp/cs/Con...acodalogin=yes
Who knows what will happen???
Who knows what will happen???
Apr 29, 2005, 11:48 am
#13
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If you go way back to the original KLM/Northwest deal, I believe KLM provided equity money for the buyout of Northwest by the investment group that took it over. The quid pro quo for that was the codeshare. KL simply bought market share. Although the 49% rule is in effect, AC (which I believe,itself, has been bought by private interests) could still acquire a minority share. Their protection (normally people don't like being minority shareholders...has to do with being outvoted), assuming the enterprise was a money maker, and there was a disagreement, would be to acquire enough additional stock to put them in violation of the 49% foreign ownership limit. The government would require a sale of the airline, or a reduction of the foreign ownership. That would require a buyout of the foreign investor. Either way, they'd get their money out. Whatever, as a number of us have observed over the last few months, something is going on.
Apr 30, 2005, 9:17 pm
#15
Join Date: Jun 2003
Location: Athens, WV, USA; a US cockroach long before it was in FFOCUS; now a lowly US5 for only the 2nd time in 20 years.
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Originally Posted by cedric
Canada is a much different market than the US. In Canada, there is no other frequent flyer program to keep Aeroplan honest. You can bet that if an AC/HP/US scenario were ever to happen, separate frequent flyer programs would exist for quite some time.
I would hope not. 