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ACE to Announce $6Bn Aircraft order in 3mo

ACE to Announce $6Bn Aircraft order in 3mo

Old Apr 14, 05, 1:48 pm
  #1  
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ACE to Announce $6Bn Aircraft order in 3mo

Air Canada to announce US$6 billion aircraft deal within three months
02:46 PM EDT Apr 14

NEW YORK (CP) - The Wall Street Journal says Air Canada plans to announce an aircraft deal worth more than $6 billion US before the end of June.

The supplier would be either Boeing Co. or Airbus Industrie, and the deal would replace the Canadian carrier's entire fleet of wide-body jets over several years, CEO Robert Milton told the newspaper in an article published Thursday.

ACE Aviation Holdings (TSX:ACE) recently secured $642 million US in financing and has previously signalled its plan to make a major aircraft order.

Milton also said ACE will quickly pursue the sale of a stake in its Aeroplan frequent-flyer unit, which has a total value estimated at between $900 million and $1.6 billion US. That move could involve an initial public offering and creation of an income trust.

The new aircraft would replace 45 Boeing 767s over several years. If Boeing wins the bidding, Air Canada would also replace 20 Airbus wide-body aircraft.

Montreal-based Air Canada emerged from bankruptcy-court protection last September after dramatically slashing debt and staff. It and rival WestJet Airlines of Calgary recently benefited from the collapse of cut-rate competitor Jetsgo in March.



The Canadian Press, 2005
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Old Apr 14, 05, 1:49 pm
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Bye bye Aeroplan

And...apparently Aeroplan is to be sold soon as well...
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Old Apr 14, 05, 2:50 pm
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Originally Posted by mballb
And...apparently Aeroplan is to be sold soon as well...
Since ACE re-organized their divisions with the specific intent of simplifying the future sell-off or all or parts of each division (Aeroplan, Cargo, whatever their services groups are called) and specifically mentioned selling off part of Aeroplan from the get-go upon emerging from CCAA protection, this is hardly news. The change in structure of Aeroplan has already resulted in increased tax for tickets to US destinations, and the loyalty (to AC as the preferred passenger airline) aspects of Aeroplan have steadily been eroding, so what is there to fear. Aeroplan is already run as a separate profit centre, albeit with big daddy ACE still really in charge. ACE has implied they will hold a significant chunk of Aeroplan even if it is sold-off, so what more damage can happen that doesn't appear to be happening anyway?
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Old Apr 14, 05, 3:10 pm
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Get the giant butterfly-net!!! The man has clearly gone off his rocker!

Sell off Aeroplan, yes, and good riddance. But a spending spree of this size? Not now, you dork! (Yes, I just publically called Robert Milton that, and I don't regret it)

Looks like a disaster brewing. (closest smilie to a look of absolute horror)
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Old Apr 14, 05, 3:15 pm
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Please please please Boeing 777's ...
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Old Apr 14, 05, 3:23 pm
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A few quotes from the original WSJ article:

The company plans some trading as well. Mr. Milton said ACE also will pursue "as quickly as we can" the sale of a stake in its Aeroplan LP frequent-flyer unit, which sells customer-loyalty points to banks and retailers and later provides rewards when consumers redeem the points. Aeroplan makes money on the spread between revenue from the points and the cost of the rewards, as well as from "breakage," or points that never get redeemed. Analysts' estimates of Aeroplan's total value range from US$900 million to $1.6 billion.


The new aircraft would replace 45 Boeing 767s over several years. If Boeing wins the bidding, Air Canada would also replace 20 Airbus wide-body aircraft. The airline also expects to gradually expand its total fleet, so a win for Boeing could mean orders for more than 65 planes, while an Airbus win would be for more than 45 jets. Mr. Milton said the airline may initially place firm orders for half of the aircraft, with the rest under option.


A centerpiece of the order would involve either the Boeing 787 Dreamliner, which won't be available for delivery until 2008, or the planned Airbus A350, slated to be ready in 2010. Meanwhile, if Air Canada chooses Boeing it will begin taking delivery of Boeing 777s next year, Mr. Milton said. If Airbus is chosen, it would begin delivering A330s next year, followed by A340s and later the A350, he said.


If you are a wsj.com subscriber you can read more at http://online.wsj.com/article/0,,SB1...006439,00.html
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Old Apr 14, 05, 3:38 pm
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Originally Posted by karachi
Please please please Boeing 777's ...
Please please please Airbus 343/346's ...
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Old Apr 14, 05, 3:49 pm
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Please please please bring more CRJs...

NOT! Really!

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Old Apr 14, 05, 4:14 pm
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Originally Posted by karachi
Please please please Boeing 777's ...
I'll second that! ^
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Old Apr 14, 05, 5:34 pm
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Originally Posted by karachi
Please please please Boeing 777's ...
I "third" this choice!!!!
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Old Apr 14, 05, 5:38 pm
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Whatever is cheaper to them. As long as it's two-engined.
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Old Apr 14, 05, 6:09 pm
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More Dashes! More Dashes!
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Old Apr 14, 05, 6:11 pm
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Originally Posted by karachi
Please please please Boeing 777's ...
Fourth here!
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Old Apr 14, 05, 6:11 pm
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Originally Posted by karachi
Please please please Boeing 777's ...
do you really want the possibility of having a middle seat in J?
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Old Apr 14, 05, 7:30 pm
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Originally Posted by shore9
do you really want the possibility of having a middle seat in J?
Who said they would configure a B777 with a middle seat? Do you have inside info? Not all airlines configure their 777 J class 2x3x2.

In fact most airlines who operate 2 class aircraft have a 2x2x2 config. DL, CO, as well as TG (new config), and BA have 6 abreast seating.
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