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RM says AC on fast track to sell off AP

RM says AC on fast track to sell off AP

Old Apr 19, 05, 7:26 pm
  #16  
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I guess I am short sighted....... get the money from AP and buy new planes and seats! Just dont spend the money giving RM a bonus. Or spend the money giving RM a exit plan.
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Old Apr 19, 05, 9:09 pm
  #17  
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Originally Posted by tcook052
http://www.cbc.ca/cp/business/050418/b041858.html

MONTREAL (CP) - Air Canada is on the fast track to sell off its Aeroplan customer loyalty program, the chief executive of the airline's parent company said Monday.

I certainly can't afford it.
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Old Apr 19, 05, 10:47 pm
  #18  
 
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Originally Posted by Luubert
Wow YEG Guy!!! You counted!

No, No, No, No,!!! I'm an IT geek, not a math wizard! I exported to MS Word and let Uncle Bill do the math.
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Old Apr 20, 05, 2:00 am
  #19  
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I must admit I'm a bit puzzled by the whole sell-off plan. When CP did it in the name of unlocking shareholder value it made sense, as they had become a conglomerate of unrelated businesses. However, all the AC spin-offs are tightly related to the core business: maintenance, FF program etc. If AP is a moneyspinner, why divorce it from the mainline carrier which is notoriously cyclical in nature? Why would you want to hold shares in just the mainline carrier?

With regards to Jazz, why would AC institute a capacity purchase agreement in which they assume all the risk and planning, just to sell the regional carrier, and what, carry the risk for another company? If not, why would I buy Jazz if mainline was doing all the flight planning? What if Jazz wanted to compete on some routes? Same goes for maintenance, if I buy ACTS and then get a better offer from Delta to service their planes, does AC mainline lose out in terms of service time?

I can't see AC starting another FF plan if AP is sold, and I can't see a potential buyer allowing it, in the terms of sale.

It all smacks of the "burn the furniture to stay aloft" strategy which I thought was behind them.
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Old Apr 20, 05, 7:38 am
  #20  
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...also puzzled

Originally Posted by LeSabre74
I must admit I'm a bit puzzled by the whole sell-off plan. When CP did it in the name of unlocking shareholder value it made sense, as they had become a conglomerate of unrelated businesses. However, all the AC spin-offs are tightly related to the core business: maintenance, FF program etc. If AP is a moneyspinner, why divorce it from the mainline carrier which is notoriously cyclical in nature? Why would you want to hold shares in just the mainline carrier?
I was wondering about the same thing. The steady cash flow from the subsidiaries is an insurance against the ebbs and flows of the airline business.

There are some here on this board that would postulate that Aeroplan has moved away from the core business with the loyalty program emphasis and it deserves to be sold.

I recently had breakfast with an acquaintance in the brokerage world. He related a conversation with a manager of a huge mutual fund who was convinced that Aeroplan would be spin off into a income trust fund. He claimed that Aeroplan perfectly fit the income trust model la Yellow Pages Income Trust; steady cash flow with potential for increase in distributions to trustholders.
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Old Apr 20, 05, 2:01 pm
  #21  
 
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The answer is "to raise capital".

However, AC has indicated that Aeroplan sell-offs could involve ACE retaining a significant or even controlling holding. So, it could be the best of both worlds (control and new capital) but would complicate the corporate structure and reporting requirements somewhat.
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Old Apr 21, 05, 4:29 pm
  #22  
 
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Originally Posted by the happy booker
After a suitable period of keeping an open mind on his ability to run the company after it emerged from bankruptcy protection, I'm giving him a failing grade.
Given your comments on sexual harrassment and labelling of women as "broads" etc., I'm sure he'd be very happy to hear that.
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Old May 18, 05, 10:38 am
  #23  
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Air Canada parent ACE readies Aeroplan IPO-report

http://www.reuters.ca/locales/c_news...toryID=8529045



TORONTO (Reuters) - Air Canada parent ACE Aviation Holdings could spin off its Aeroplan rewards program into an income trust and sell a minority stake in the initial public offering worth more than C$300 million as early as this week, a Canadian national newspaper said on Wednesday.
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Old May 18, 05, 1:12 pm
  #24  
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Originally Posted by YEG Guy
No, No, No, No,!!! I'm an IT geek, not a math wizard! I exported to MS Word and let Uncle Bill do the math.
Good thing you didn't ask Uncle Pentium-I to do the math.
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