Adam Smith

Yes, I know, but a number of national governments continue to push the EU to relax it, under pressure from the airlines and IATA. There's always a risk that the EU caves and changes it.

At that price, sure, it might well be worth it

Really, that's a compelling proposition?

Hopefully, but your guess is as good as anyone else's. If travel has somewhat normalized, almost certainly service will be closer to normal (including Signature Suite). If there's a second wave of the virus and travel goes to heck again, it may be no better than it is now. But in that case, you'd probably be cancelling your trip.

(Note that we're veering somewhat off the topic of this thread. For more info on refunds vs credits, there's this thread. For schedules and service levels, there's a master COVID thread. And there's a thread on current J service levels too)

tcook052

Air Canada raises $1.6 billion to mitigate losses during pandemic

MONTREAL - Air Canada says it has raised $1.59 billion from share and debt offerings to refill its coffers as cash drains out during the COVID-19 pandemic.

The company says it sold 35.4 million voting shares at $16.25 apiece for gross proceeds of $575.6 million.

It also issued $1.02 billion in convertible senior unsecured notes due in 2025, well above its initial plan for about $540 million.

Chief financial officer Michael Rousseau says the financing proceeds help to restore Air Canada's liquidity strength after confinement measures and border shutdowns “destroyed demand and depleted cash.”

skybluesea

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Adam Smith

I suspect AC will be happy about getting the overallotments exercised and getting those extra couple hundred million in the door.

The presentation they used to raise this financing said about $22MM a day in March, with expectations that number would "improve modestly in second quarter". But with so many measures in place to cut costs (including failing to refund customers), plus CEWS and so on, that seems like an understatement. If they can cut that in half, that would mean about $300MM/month. With their ~$9.4 billion of liquidity pro forma the offerings, they would have about 2.5 years of running room.

Of course, things will either improve during that time, or they'll cut costs further.

Really, AC should be very comfortable right now.

CZAMFlyer

Airports like YVR are not only halting rent collections, they've conceded free storage for many of AC's aircraft parked at gates and on remote stands for the past several weeks. The upper mgmt at AC understand they control the marionette strings at the end of which YVR dances under a cloud of consistent threats that the airport's success is tied to the airline's success. In reality, it may well be the opposite dependency, as one wonders where AC might set up operations if they became disillusioned by fair market-value operating costs and accountabilities imposed by a more assertive airport operator.

eigenvector

Considering that AC has already demonstrated that it has the Government of Canada in the palm of its hand, why would they have anything to fear from an airport authority? Ottawa is willing to anger tens of thousands of actual Canadian voters at the behest of AC management, why would they hesitate to coerce an unelected airport authority that operates a public asset on behalf of the government?

skybluesea

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Fiordland

AC is not going to move out of YVR or YYZ anytime soon. Abbatsford and Hamilton simply don't have the infrastructure or proximity to city center.

What I think YVR has long understood is their growth to a large part is tied to AC and WS. That said with WS having a Calgary hub it is always going to play a smaller role in YVR vrs AC.

Does AC still have all the infrastructure from Canadian Pacific (building complex on the North side driving in) as well as all the original hanger space from AC before the merger (the space on the south side). That would be a massive amount of office, hanger and industrial space they are paying rent on in addition to anything associated with aircraft and terminals.

skybluesea

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WindowSeatFlyer

Air Canada raises $1.2bn, says it still wants Transat deal

Air Canada (AC, Montréal Trudeau) has announced the closing of its previously announced fund-raising effort, hauling in nearly CAD1.6 billion Canadian dollars (USD1.19 billion) by selling shares and convertible debt to strengthen its cash flow, showing that investors are still willing to support aviation through the coronavirus crisis.

The company will use the proceeds to supplement its working capital and for other general corporate purposes, bolstering its cash position and “allowing for additional flexibility both from an operational standpoint and in the implementation of its planned mitigation and recovery measures in response to the Covid-19 pandemic,” it said in a statement on June 2.

https://www.ch-aviation.com/portal/n...s-transat-deal

Fiordland

What I find interesting is the title and the body of the text say different things.

The title say AC still wants the deal with Transat.

The body of the article says: AC has only been meeting with government over the COVID-19 issue not the Air Transat issue. AC is still waiting for a decision from government on the Air Transat deal.

Comes across more like indifferent or resigned to it being out of their hands. Both of those are unlikely. Perhaps a desire to not want to prejudice the eventual law suit when it falls apart.

Wonder if the reporter is working off a statement that was not quoted in the article.

Adam Smith

It's a poorly written article.

There's nothing new in it; it's a rehash of AC's statements along with reporting in the Canadian press. Perhaps they see their value-add as re-packaging all that in one place for an aviation-focused audience that may not have gone and looked in to AC otherwise.

gernabae

Don't think this has been posted, but there will be a webinar with Calin Rovinescu tomorrow regarding AC's recovery. I've found these webinars to be quite informative on the whole. I don't think you need to be a subscriber (I'm not, but perhaps my company is) as I've had no impediment to registering for these and it is listed as complimentary.

https://pgs.aviationweek.com/AirCanada?code=WATWFC3

tcook052

Air Canada CEO pleads with Trudeau government to let airlines fly again

Calin Rovinescu said the government's rules on travellers are now 'disproportionate' as the COVID-19 pandemic eases in many regions

Canada should loosen travel restrictions and “enable us to do some reasonable amounts of business,” the head of Air Canada said.

Chief Executive Officer Calin Rovinescu said the Canadian government’s rules on travellers are now “disproportionate” as the COVID-19 pandemic eases in many regions.

canadiancow

Says the guy who won't open his lounges...