Could AC Buy Transat? 16May19 Update: AC enters into agreement to buy Transat
May 20, 2019, 6:03 pm
#151
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May 21, 2019, 2:06 pm
#152
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This is to me the best take on the whole AC involvement in a Transat acquistion: as a defensive play. The main assets, such as they are, are market share and routes. If westjet/Onex had picked those up that would have been quite challenging for AC. You don’t need to buy an airline to get aircraft, especially if that purchase results in acquiring staff, a different business culture, etc., etc., which are all challenges that have to be dealt with. Pick up routes and market share that would otherwise go to one or more competitors and you could be open to risking parts of your core well established business.
May 21, 2019, 3:13 pm
#153
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Presuming AC does indeed buy TS and now has "2 discount carriers" on its books, can you see them merging destinations where Rouge and Transat fly once per day into one flight with an upsized plane or will they split the flights so that the flight times are further apart?
For example Rouge flies to BCN daily, whereas Transat flies every day except Mondays during the peak travel season (July and August). Rouge is obviously a 763 aircraft whereas TS flies an A332. Rouge flies out at 20:20 and Transat at 22:30. It's not like AC would begin to add the sardine can 773s into Rouge fleet just to merge the two flights into one, would they?
For example Rouge flies to BCN daily, whereas Transat flies every day except Mondays during the peak travel season (July and August). Rouge is obviously a 763 aircraft whereas TS flies an A332. Rouge flies out at 20:20 and Transat at 22:30. It's not like AC would begin to add the sardine can 773s into Rouge fleet just to merge the two flights into one, would they?
May 21, 2019, 3:52 pm
#154
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How would TS and AC unions "merge"? Is seniority grandfathered from the TS side? Or is it possible that they will remain separate?
(IANAL and although having been part of a union in the past, I don't know much about them, so I trust that the reader of this post gets the "gist" of what I'm asking)
(IANAL and although having been part of a union in the past, I don't know much about them, so I trust that the reader of this post gets the "gist" of what I'm asking)
May 21, 2019, 4:14 pm
#155
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How would TS and AC unions "merge"? Is seniority grandfathered from the TS side? Or is it possible that they will remain separate?
(IANAL and although having been part of a union in the past, I don't know much about them, so I trust that the reader of this post gets the "gist" of what I'm asking)
(IANAL and although having been part of a union in the past, I don't know much about them, so I trust that the reader of this post gets the "gist" of what I'm asking)
There are lots of issues to work out, and even after the livery is the same, you could very easily have one flight with an AC crew and another with a TS crew.
May 21, 2019, 4:29 pm
#156
Join Date: Dec 2002
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Presuming AC does indeed buy TS and now has "2 discount carriers" on its books, can you see them merging destinations where Rouge and Transat fly once per day into one flight with an upsized plane or will they split the flights so that the flight times are further apart?
For example Rouge flies to BCN daily, whereas Transat flies every day except Mondays during the peak travel season (July and August). Rouge is obviously a 763 aircraft whereas TS flies an A332. Rouge flies out at 20:20 and Transat at 22:30. It's not like AC would begin to add the sardine can 773s into Rouge fleet just to merge the two flights into one, would they?
For example Rouge flies to BCN daily, whereas Transat flies every day except Mondays during the peak travel season (July and August). Rouge is obviously a 763 aircraft whereas TS flies an A332. Rouge flies out at 20:20 and Transat at 22:30. It's not like AC would begin to add the sardine can 773s into Rouge fleet just to merge the two flights into one, would they?
The unknown to us speculators, is the amount of connecting traffic at both ends.
Using your example only, and assuming only connecting passengers from North America, it would be reasonable for one flight to operate from YYZ and the other from YUL.
That would reduce stress at YYZ.
Better yet maybe some frequencies could be added from Western Canada.
Overall it will take a few years to optimize the network. Hopefully more non stops can be added from the Praries and Maritimes.
Or to merge the lists of AC & CP.
No matter what happens some employees will benefit more than others.
Fences will probably be built to protect those who have more to lose.
May 21, 2019, 7:23 pm
#157
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AC doesn't have enough 777s to merge every duplicate wide body route.
The unknown to us speculators, is the amount of connecting traffic at both ends.
Using your example only, and assuming only connecting passengers from North America, it would be reasonable for one flight to operate from YYZ and the other from YUL.
That would reduce stress at YYZ.
Better yet maybe some frequencies could be added from Western Canada.
Overall it will take a few years to optimize the network. Hopefully more non stops can be added from the Praries and Maritimes.
Or to merge the lists of AC & CP.
No matter what happens some employees will benefit more than others.
Fences will probably be built to protect those who have more to lose.
The unknown to us speculators, is the amount of connecting traffic at both ends.
Using your example only, and assuming only connecting passengers from North America, it would be reasonable for one flight to operate from YYZ and the other from YUL.
That would reduce stress at YYZ.
Better yet maybe some frequencies could be added from Western Canada.
Overall it will take a few years to optimize the network. Hopefully more non stops can be added from the Praries and Maritimes.
Or to merge the lists of AC & CP.
No matter what happens some employees will benefit more than others.
Fences will probably be built to protect those who have more to lose.
May 21, 2019, 8:06 pm
#158
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And that was ~20 years ago and I'll go out on a limb that the nature of things have changed since then... (not Dr. Suzuki style though)
May 21, 2019, 9:44 pm
#159
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You have two different unions. Likely only one will be there at the end of the process.
There are some cultural differences as well. Sounds like Transat has there pilots certified for the A320/A330 and can go back and forth as required. AC has some type of progression/seniority process at play with a very different pay scale.
May 21, 2019, 11:59 pm
#160
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The first Transat A310 repainted in AC’s livery (C-FRQP)
InstaCredit: https://instagram.com/concept.liveri...=12a7hac0eja39
InstaCredit: https://instagram.com/concept.liveri...=12a7hac0eja39
May 22, 2019, 11:31 am
#163
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May 27, 2019, 9:38 am
#164
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G&M OpEd:Canada’s skies need more airlines and more competition, not less
G&M OpEd:Canada’s skies need more airlines and more competition, not less
May 27, 2019, 9:58 am
#165
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I generally don't like this. We (ie the family) fly Transat to Scotland every year. The reality is the planes used for this route are better than Rouge (when they flew it), even though I have *G (United not AC, like my complimentary upgrades from time to time). I see only an opportunity for reduced service (frequency and choices) with higher fares, which isn't a win for me at all. Generally my experience with AC is just fine (it's been excellent a couple times, and bad a couple times, so a wash) and Transat has always been good (but that is just a small sample size, shouldn't count). In many ways I see them as keeping each other honest on leisure routes, and no one else is flying to Scotland these days without a connection. Sunwing etc may handle the sun destinations fine, but trans Atlantic I think will suffer in particular.