FlyerTalk Forums - View Single Post - What drives Air Canada's stock price?
View Single Post
Old Apr 21, 2020 | 12:06 pm
  #435  
Adam Smith
Moderator, Air Canada; FlyerTalk Evangelist
 
Join Date: Feb 2015
Location: YYC
Programs: AC SE MM, FB Plat, WS Plat, BA Silver, Marriott Plat, Hilton Gold, Accor Gold
Posts: 18,942
Originally Posted by YVRYEGYVR
AC will not fail, gov will not let it, customers are eager to get back travelling, maybe leisure more than business, but once the all clear comes + maybe some time, AC and other carriers will be profitable.
Even if you're correct that the government won't let AC fail, which is probably correct, that doesn't mean shareholders won't be wiped out or massively diluted. Remember that GM and Chrysler didn't fail, but their shareholders were wiped out.

(I'm not saying AC is going to zero, just want to make sure people keep it in mind that a bailout of the company doesn't necessarily mean a bailout of the shareholders)
Adam Smith is offline