Originally Posted by
ridefar
The opinions of two of those three simply don't matter.
The third (the regulator) has not shown any inclination to behave in a way that AC doesn't find favourable. Ever.
And oh yeah, this apparently requires repeating: TRZ was failing. They were running an unsustainable business. Fares were going up, or they were going out of business. So maybe the regulator will weigh in the economic impact (job losses amongst others) of TRZ being insolvent?
i
Thus the reason for an unprecedented 250 day review period....
Canadian was failing. Transat is not failing and has more than enough opportunity to do some self course correction to put itself back on the right path.
As was the case with the CP takeover, when CP was one payroll from failure, (Dec 15 1999), the deal will be approved, subject to numerous undertakings and carve outs, especially in the Quebec and YYZ markets.
It’ll be up to AC to determine if the various conditions demanded make the deal at the current, (or at any), price is worth pursuing to conclusion.
Don’t underestimate any government’s sensitivity to the airline file in Canada, especially when it pertains to pricing and competition. A day barely passes in Canada when there isn’t a CBC airline related story describing the latest misery suffered by the consumer at the hands of the so called evil duopoly.