AC takes over today
Jan 4, 2000, 9:00 am
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AC takes over today
From National Post today:
Tuesday, January 04, 2000
Air Canada takes control of Canadian today
Long rivalry ends with taking up of shares
Peter Fitzpatrick and Ian Jack
Financial Post
Air Canada is to complete its takeover of long-time rival Canadian Airlines Corp. today. Working through a numbered Alberta company, Air Canada will take up the shares of Canadian, for which it offered $2 a share in a deal worth up to $92-million.
Sources close to Canadian expect the company's board will resign today, but neither Air Canada nor Canadian could confirm such changes are imminent.
Priscille LeBlanc, a spokeswoman for Air Canada, said Canadian's board will be reconstituted in the future. "The board will change, but I don't have a timeline for that," she said.
While Air Canada takes control, its headaches are far from over. It must negotiate a restructuring with Canadian's creditors, who are owed about $1-billion, and it has also struck a committee headed by Rupert Duchesne, vice-president of marketing, to oversee the integration of the two companies.
Air Canada also wants to streamline Canadian's schedule and reallocate capacity to improve efficiencies over the coming months.
Tuesday, January 04, 2000
Air Canada takes control of Canadian today
Long rivalry ends with taking up of shares
Peter Fitzpatrick and Ian Jack
Financial Post
Air Canada is to complete its takeover of long-time rival Canadian Airlines Corp. today. Working through a numbered Alberta company, Air Canada will take up the shares of Canadian, for which it offered $2 a share in a deal worth up to $92-million.
Sources close to Canadian expect the company's board will resign today, but neither Air Canada nor Canadian could confirm such changes are imminent.
Priscille LeBlanc, a spokeswoman for Air Canada, said Canadian's board will be reconstituted in the future. "The board will change, but I don't have a timeline for that," she said.
While Air Canada takes control, its headaches are far from over. It must negotiate a restructuring with Canadian's creditors, who are owed about $1-billion, and it has also struck a committee headed by Rupert Duchesne, vice-president of marketing, to oversee the integration of the two companies.
Air Canada also wants to streamline Canadian's schedule and reallocate capacity to improve efficiencies over the coming months.
Jan 4, 2000, 9:03 am
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And from the Toronto Star:
By Lisa Wright
Toronto Star Business Reporter
``So Canadian Airlines is sold as of (today),'' said Leblanc, adding: ``All the significant steps are concluded.''
Air Canada and Canadian will work intensively this month on scheduling and route planning to re-allocate excess capacity on routes where there is unnecessary flight duplication.
``They will probably not have some (routes) competing head-on with Air Canada all day as they do now,'' LeBlanc said.
``We understand they take ownership very quickly,'' said Canadian spokesperson Rene Smith-Valade.
After the restructuring, Air Canada will acquire control of Canadian from the Alberta numbered company.
But even then, Air Canada chief executive Robert Milton intends to operate his former rival company as a separate subsidiary for an unspecified period.
Don't expect to see a rapid merger of both airlines since the airline's first priority is debt-restructuring. Milton has also committed to running Canadian at least until it turns a profit.
And although some scheduling changes will be made in the interim, they'll still maintain many separate functions for some time, LeBlanc said.
``The aircraft and the operating crews (of Canadian) all stay,'' said LeBlanc.
``But while the two companies are being run as separate operations - which could be a few years - there could be many duplications that remain,'' LeBlanc said.
By Lisa Wright
Toronto Star Business Reporter
``So Canadian Airlines is sold as of (today),'' said Leblanc, adding: ``All the significant steps are concluded.''
Air Canada and Canadian will work intensively this month on scheduling and route planning to re-allocate excess capacity on routes where there is unnecessary flight duplication.
``They will probably not have some (routes) competing head-on with Air Canada all day as they do now,'' LeBlanc said.
``We understand they take ownership very quickly,'' said Canadian spokesperson Rene Smith-Valade.
After the restructuring, Air Canada will acquire control of Canadian from the Alberta numbered company.
But even then, Air Canada chief executive Robert Milton intends to operate his former rival company as a separate subsidiary for an unspecified period.
Don't expect to see a rapid merger of both airlines since the airline's first priority is debt-restructuring. Milton has also committed to running Canadian at least until it turns a profit.
And although some scheduling changes will be made in the interim, they'll still maintain many separate functions for some time, LeBlanc said.
``The aircraft and the operating crews (of Canadian) all stay,'' said LeBlanc.
``But while the two companies are being run as separate operations - which could be a few years - there could be many duplications that remain,'' LeBlanc said.
Jan 4, 2000, 9:18 am
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This is the beginning of the end!
Jan 4, 2000, 10:18 am
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And from Canadian Press...
With its takeover of Canadian Airlines now official, Air Canada is sending its top guns to Canadian's Calgary headquarters to transform the ailing carrier into a money- maker.
Rupert Duschesne, 40, has been seconded from his post as senior vice president of Air Canada's international operations to head an integration team of executives from both airlines, Air Canada said Monday.
Duchesne, who climbed aboard Air Canada three years ago as vice president of marketing, was formerly co-owner and director of mergers and acquisitions at LCB Consultants in London before merging it with Mercer Management Consulting.
"He has a lot of experience" in takeovers, said Air Canada spokesperson Priscille LeBlanc.
Dechesne faces a big job as Air Canada's bitter battle to acquire longtime rival Canadian Airlines concludes with the Montreal based airline taking up the shares of the western carrier for $92 million.
...
Air Canada now embarks on another arduous journey to complete a restructuring of Canadian's $3 billion in liabilities, a process likely to take several months.
At the same tiem, Air Canada and Canadian will work on scheduling and route planning to reallocate capacity on routes where there is flight duplication. "They will probably not have some (routes) competing head-on with Air Canada all day, as they do now," LeBlanc said.
"We understand they take ownership very quickly," said Canadian spokesperson Renee Smith-Valade.
Even after restructuring, Air Canada chief executive Robert Milton intends to operate his former rival as a separate subsidiary for an unspecified period. Don't expect a rapid merger, since the airline's first priority is debt restructuring, and Milton is committed to running Canadian at least until it turns a profit.
The airlines will maintain many separate functions for some time to come, LeBlanc said. "The aircraft and the operating crews (of Canadian) all stay", she said. Canadian Airlines is saying it's business as usual and all flights booked will be honoured.
As for the takeover, it's all new territory for employees at both airlines.
"No one can say definitely what's going to happen," Smith-Valade said.
from the Edmonton Journal. January 4, 2000
With its takeover of Canadian Airlines now official, Air Canada is sending its top guns to Canadian's Calgary headquarters to transform the ailing carrier into a money- maker.
Rupert Duschesne, 40, has been seconded from his post as senior vice president of Air Canada's international operations to head an integration team of executives from both airlines, Air Canada said Monday.
Duchesne, who climbed aboard Air Canada three years ago as vice president of marketing, was formerly co-owner and director of mergers and acquisitions at LCB Consultants in London before merging it with Mercer Management Consulting.
"He has a lot of experience" in takeovers, said Air Canada spokesperson Priscille LeBlanc.
Dechesne faces a big job as Air Canada's bitter battle to acquire longtime rival Canadian Airlines concludes with the Montreal based airline taking up the shares of the western carrier for $92 million.
...
Air Canada now embarks on another arduous journey to complete a restructuring of Canadian's $3 billion in liabilities, a process likely to take several months.
At the same tiem, Air Canada and Canadian will work on scheduling and route planning to reallocate capacity on routes where there is flight duplication. "They will probably not have some (routes) competing head-on with Air Canada all day, as they do now," LeBlanc said.
"We understand they take ownership very quickly," said Canadian spokesperson Renee Smith-Valade.
Even after restructuring, Air Canada chief executive Robert Milton intends to operate his former rival as a separate subsidiary for an unspecified period. Don't expect a rapid merger, since the airline's first priority is debt restructuring, and Milton is committed to running Canadian at least until it turns a profit.
The airlines will maintain many separate functions for some time to come, LeBlanc said. "The aircraft and the operating crews (of Canadian) all stay", she said. Canadian Airlines is saying it's business as usual and all flights booked will be honoured.
As for the takeover, it's all new territory for employees at both airlines.
"No one can say definitely what's going to happen," Smith-Valade said.
from the Edmonton Journal. January 4, 2000