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!! HP/US: 20 A350, AC to invest 125M, as per the FT

!! HP/US: 20 A350, AC to invest 125M, as per the FT

Old May 15, 05, 8:16 pm
  #1  
YUL
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!! HP/US: 20 A350, AC to invest 125M, as per the FT

Would be called US Airways, be based in PHX and have more than 2 billions in liquidity. Air Canada would put in 125M in return of some maintenance business (and I guess some pax into its international network + having a plan B in case of UA failure)

See link:

http://news.ft.com/cms/s/936e1826-c5...00e2511c8.html

ric
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Old May 16, 05, 1:47 am
  #2  
exAC
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Originally Posted by YUL
Would be called US Airways, be based in PHX and have more than 2 billions in liquidity. Air Canada would put in 125M in return of some maintenance business (and I guess some pax into its international network + having a plan B in case of UA failure)

See link:

http://news.ft.com/cms/s/936e1826-c5...00e2511c8.html

ric
The $125 mil gets ACE in the door to collect some hefty management, consulting and advisor fees, primarily to the other big investors. Otherwise there is little advantage to AC as an airline.
 
Old May 16, 05, 4:31 am
  #3  
 
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Originally Posted by YUL
Would be called US Airways, be based in PHX and have more than 2 billions in liquidity. Air Canada would put in 125M in return of some maintenance business (and I guess some pax into its international network + having a plan B in case of UA failure)

See link:

http://news.ft.com/cms/s/936e1826-c5...00e2511c8.html

ric

"As one former senior airline executive puts it, it is like combining two one-legged men. They are not going to be a track star, even if they are ambulatory.

roflmao!
Lee A Carney is offline  
Old May 16, 05, 5:29 am
  #4  
 
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I wonder if this new airline would be part of the Star Alliance?
mad_atta is offline  
Old May 16, 05, 7:50 am
  #5  
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Originally Posted by exAC
The $125 mil gets ACE in the door to collect some hefty management, consulting and advisor fees, primarily to the other big investors. Otherwise there is little advantage to AC as an airline.
Probably so but Cerbereus has bigger ideas than just owning a piece of AC I think. It would not be their style to sit tight on just being an ACE shareholder.
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Old May 16, 05, 8:54 am
  #6  
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Already being discussed:

http://www.flyertalk.com/forum/showthread.php?t=433017
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Old May 16, 05, 3:34 pm
  #7  
exAC
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Originally Posted by tcook052
Yes but this thread has a little more pertenant and informed discussion.
 
Old May 16, 05, 3:36 pm
  #8  
exAC
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Originally Posted by parnel
Probably so but Cerbereus has bigger ideas than just owning a piece of AC I think. It would not be their style to sit tight on just being an ACE shareholder.
Cerberus and the other hedge funds (even Onyx) have little or no airline operating experience. They go out and contract for consultants to help them decipher the inner workings of the airline and then they make their financial decisions. During the AC CCAA it wasn't just the lawyers that made out like bandits.
 

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