HP/US in talks with AC

Old Apr 28, 05, 6:35 am
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Exclamation HP/US in talks with AC

Looks like Air Canada is talking to HP and US about some type of merger?? Here is the article: http://www.thestar.com/NASApp/cs/Con...acodalogin=yes

What will we hear next??
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Old Apr 28, 05, 9:00 am
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A Wall Street source said yesterday that Air Canada may be in talks with both U.S. Airways and America West in a deal that may see Air Canada take on international traffic with the U.S. Airways-America West concern handling domestic U.S. traffic.
Something like this would make sense, though I'm surprised discussions are with a Canadian carrier, as it would seem that the value of the existing routes to AC would not be as high as they would be to a high profile US carrier. Meaning, I question whether a lot of Americans would be that interested in flying form the US to Europe on AC vs. a more famililar American carrier or a larger and more familiar international one like BA or LH.

Either way, I've been having a hard time seeing Parker interested in a lot of the international routes, the European ones in particular.

But the value they'd bring in a 3-way deal could net some much-needed cash for a combined HP/US domestic carrier and it would allow the new US/HP to focus more on Parker's proven low-cost carrier model, which would be a stretch with far-flung international routes.

As AC is a Star Alliance member, it bodes well for the new US/HP to remain in the alliance, with the combined domestic carrier feeding the international flights of AC and other alliance parteners. My concern is that without major international routes the temptation for a new US/HP might be to stick with a more pure LCC model and not join ANY alliance. That would be an unfortunate outcome.
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Old Apr 28, 05, 1:42 pm
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Aren't there laws out there which would prevent this sort of a possible merger? I mean Branson has had a helluva time trying to get Virgin America started, how would AC be able to merge with HP/US?
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Old Apr 28, 05, 2:35 pm
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Originally Posted by olympicnut
Aren't there laws out there which would prevent this sort of a possible merger? I mean Branson has had a helluva time trying to get Virgin America started, how would AC be able to merge with HP/US?
I think as long as AC is willing to limit its stake to 25% (the current limit on foreign investors in US-based airlines) or less, I think it's feasible in legal terms. I guess this is not a bad way for AC to get its hands on the US domestic market it long soughts (not allowed due to current aviation laws). However, I am not sure a combined HP/US route network can benefit AC's existing route structure, though.

LAX

Correction: I have read somewhere that AC's stake in the new entity can be as high as 49% because of NAFTA.

Last edited by LAX; Apr 29, 05 at 7:39 am
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Old Apr 28, 05, 5:01 pm
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Just say no to AC

If AC is involved, I definitely don't want this deal to go through. I have nothing against the airline, but the deal does no good for HP.
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Old Apr 28, 05, 6:19 pm
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I know that recently many reports have focused on foreign ownership of american air carriers. While the US considers this issue a non starter, there has been some movement to liberalize this between the US and Canada. The EU agreement would be seperate, but the Canadian government has broached the subject with the president and the word is that he was supportive. It would require congressional action but it is more acceptable to them with NAFTA, then an EU agreement. Labor could be a problem but hasn't Canada been a labor supportive country? I will try to find an article on the subject it has been a few months.
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Old Apr 29, 05, 9:53 pm
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AC is a great airline - I love to fly AC (despite the grouchy flight attendants) - they still serve huge fresh muffins in the morning on short flights like ORD - YYZ - in coach!!
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Old Apr 29, 05, 10:30 pm
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AC flies from Honolulu to Sydney nonstop. I like a carrier that flies to Australia.
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Old Apr 30, 05, 3:43 pm
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Cool

Originally Posted by BF263533
AC flies from Honolulu to Sydney nonstop. I like a carrier that flies to Australia.
LOL! So does HA.
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Old May 22, 05, 10:31 am
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Originally Posted by ByrdluvsAWACO
If AC is involved, I definitely don't want this deal
to go through. I have nothing against the airline,
but the deal does no good for HP.
AC is losing money hand-over-fist in the domestic
Canadian market. It is definitely not a LCC, like
Westjet - - which is kind of like a cross between
Southwest and JetBlue - - and is taking over the
domestic Canadian market.

A deal with AC could allow AC to concentrate on
international business, while HP/US could take on
Westjet on Cdn routes and Cdn-US routes.

HP/US has First Class cabins, and WN, WJ, JetBlue
do not. However, FC seems to be a mere shadow
of its former self...


Now to the important question - - HP/US probably
should be called "US America", and a new airline
after a merger with AC would be called:
"Air US America Canada"?

.
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Old May 22, 05, 12:08 pm
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Thumbs down

Originally Posted by IJK
Now to the important question - - HP/US probably
should be called "US America", and a new airline
after a merger with AC would be called:
"Air US America Canada"?
You really love using that name don't you? Sorry but it sounds like [email protected] It doesn't flow off the tonge phonetically.
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Old May 22, 05, 5:07 pm
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Originally Posted by ByrdluvsAWACO
You really love using that name don't you? Sorry but it sounds like [email protected] It doesn't flow off the tonge phonetically.
How about North America One
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Old May 22, 05, 5:16 pm
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Originally Posted by ByrdluvsAWACO
You really love using that name don't you? Sorry but it sounds
like [email protected] It doesn't flow off the tonge phonetically.
Yes, I know. Sorry, I didn't 'wink'.

But I think the point remains, shacking up with
- - count them, not one, but two 'losers' - -
does not sound like the best idea. But if you
can leverage the equipment and routes, with
an infusion of business methods and practices,
then they might be a reasonable fit...

.
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Old May 22, 05, 6:11 pm
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It makes a lot of sense for AC to buy into the US market. AC will expand it's hubs in Toronto, Vancouver and Montreal as both America West and US Airways will feed international passengers. Let's face it I know many American's who would rather fly Air Canada to Tel Aviv than an American carrier for security reasons. Also Air Canada offer's the only non-stop direct North America to India service.

Plus AC also locks in a multi-million dollar aircraft maintenance contract.

I say way to go AC!!
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Old May 23, 05, 12:24 pm
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Originally Posted by IJK
AC is losing money hand-over-fist in the domestic
Canadian market. It is definitely not a LCC, like
Westjet - - which is kind of like a cross between
Southwest and JetBlue - - and is taking over the
domestic Canadian market.

A deal with AC could allow AC to concentrate on
international business, while HP/US could take on
Westjet on Cdn routes and Cdn-US routes....
Who-a-a...wait until the AC apologists see this thread!

Although no fan of AC, it is apparent to me you have limited knowledge about Canada and before you post you ought to check some facts.

Firstly, AC is not losing all that much $$ anymore since they emerged from protection under the Canadian Companies' Creditors Arrangement Act (somewhat aking to part of the US Bankruptcy Code).

Secondly, WestJet, which I will fly way before AC, is still not the dominant Canadian domestic carrier - AC still is by far and away.

Finally, and this is really incredible to me that you don't know this, cabotage is not permitted in Canada nor is it permitted in the US so there is a snow ball's chance in hell that HP/AS could take on WestJet in the Canadian domestic market.
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