RM says AC on fast track to sell off AP

Old Apr 18, 05, 4:40 pm
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RM says AC on fast track to sell off AP

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.
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Old Apr 18, 05, 10:58 pm
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Can't believe hours & hours gone by without someone, even beach digit , not adding to the discussion on this topic. While maybe not a huge suurprise to most, it's one of the few pronouncements to come out of AC HQ in a while.

Parnel? exAC? SH? Ken? Is this thing on.....?
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Old Apr 18, 05, 11:48 pm
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I wonder how this will happen? My possible options include:

1. Spinning off Aeroplan to ACE shareholders... like CP did its four divisions.
2. Selling Aeoplan privately to one buyer...
- Potential buyers could include other Star Alliance airlines, operators of other loyalty programs like HBC Rewards or Esso Extra, or an independent investor.
3 Selling off Aeroplan via a corporate IPO.
4 Turning Aeroplan into an Income Trust and selling off units via an IPO.
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Old Apr 19, 05, 1:27 am
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Can't believe hours & hours gone by without someone... adding to the discussion on this topic.
Sorry, I was working. (I mean real work, not my usual goofing off at my desk.)

But it still elicits only a yawn. I think in the minds of FFers, AP has been gone a long time already. One only needs to thumb through the Kumquat or Banana or Pomegranite magazine to realize there's almost no connection between AP and AC or frequent flyers.

I suppose there's a tiny chance it might mean things will get better. Perhaps AC will realize they no longer have a FF program, will get with the program and develop one. More likely, I think they will hold on to their superstitions and claim that AP is still their FF program, even as it gets further and further from having any relationship to flying.

In short, I suspect that the lack of response is because no one here cares.
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Old Apr 19, 05, 1:29 am
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sell off its Aeroplan customer loyalty program
He he... the absurdity of selling off your customer loyalty just hit me.

Would be great fodder for Air Farce, 22 Minutes, etc.
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Old Apr 19, 05, 2:15 am
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Originally Posted by tcook052
Can't believe hours & hours gone by without someone, even beach digit , not adding to the discussion on this topic. While maybe not a huge suurprise to most, it's one of the few pronouncements to come out of AC HQ in a while.

Parnel? exAC? SH? Ken? Is this thing on.....?
Wow Tcook!!!! It took you 53 words to say "BUMP"!


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Old Apr 19, 05, 7:52 am
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Hahaha!

Well, as soon as it is sold off, then it will be "one step ahead" of Asia Miles, me thinks.
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Old Apr 19, 05, 8:46 am
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Selling off Aeroplan and getting back to a real FF plan would suit me just fine. In fact I would presume they could possibly merge FF plans within *A. As long as ACE owns a piece of Aeroplan they will use them to process the miles and have exclusive rights to seats bought by Aeroplan. But AC could then start developing their own FF plan.
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Old Apr 19, 05, 8:47 am
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RM says a lot of things. The problem is that the man lacks credibility. The recent flip-flop on the issue of bilingualism, is only one example. I'd like to see the man keep his word, for once.
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.
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Old Apr 19, 05, 8:52 am
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Originally Posted by the happy booker
RM says a lot of things. The problem is that the man lacks credibility. The recent flip-flop on the issue of bilingualism, is only one example. I'd like to see the man keep his word, for once.
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.

And from we remember about your open mind earlier on......a sewer comes into view
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Old Apr 19, 05, 10:47 am
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Originally Posted by YEG Guy
Wow Tcook!!!! It took you 53 words to say "BUMP"!


Like Ollie, I'm not a man of many words, I'm a man of too many words.

One thing nobody has mentioned yet is how much AC will get for AP and what it'll use the money for. Maybe that big plane order that was floated recently? Or bank it to help repay debts? Whatever AC gets, it'll sure go a ways to helping strengthen it's position and hopefully change the public perception of AC being an ailing airline.

And while it was asked a few months back, does this latest news make any more here consider defecting to other *A programs , such as UA MP?
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Old Apr 19, 05, 11:38 am
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Mr. Milton seems to have acquired the habit of giving interviews in which he discusses future transactions that he would "like" to see, or which he "plans" to implement.

In the old days companies tried not to talk publicly about these things until they actually had a signed deal to announce. I suspect Mr. Milton is merely trying to stimulate the market for what he has to sell.

In the Aeroplan case, I am sure that if anyone offerred a billion dollars cash for 49 per cent of Aeroplan while leaving Air Canada (ACE) in control, Mr. Milton will jump at it. The problem is convincing possible candidates to bid up to that level.

Just my opinion.
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Old Apr 19, 05, 11:50 am
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One thing nobody has mentioned yet is how much AC will get for AP and what it'll use the money for. Maybe that big plane order that was floated recently?
I think that as soon as the AP sale is finalised, the details of the new plane order will follow very quickly. They are waiting for this chunk of cash before they go ahead.
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Old Apr 19, 05, 2:42 pm
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Originally Posted by proview
In the Aeroplan case, I am sure that if anyone offerred a billion dollars cash for 49 per cent of Aeroplan while leaving Air Canada (ACE) in control, Mr. Milton will jump at it. The problem is convincing possible candidates to bid up to that level.

Just my opinion.

My sources in the investment community tell me that investment bankers are lined up at the door to do that deal for AC at very high multiples and Milton is going to take advantage of that market position.
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Old Apr 19, 05, 5:31 pm
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Originally Posted by YEG Guy
Wow Tcook!!!! It took you 53 words to say "BUMP"!


Wow YEG Guy!!! You counted!
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