Air Canada/Canadian Air merger

[Daisy]

I would like information on the Air Canada/Candian Air merger and what happened to the Canadian Air retiree benefits after that merger. Can anyone give me the details?

Thanks

 

[FrugalFlyer]

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On 5/22/2003 807 PM Daisy wrote:

I would like information on the Air Canada/Candian Air merger and what happened to the Canadian Air retiree benefits after that merger. Can anyone give me the details?


Thanks
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I think I can answer a part of your question.

AC wasn''t making too much money, limping along, CP was bleeding red ink perfusely, little or no cash on hand.

At this point, Canadian government gives AC and CP the legal right to talk about dividing up the market (2 week anti-trust exemption, if you will).
I believe AC made an offer (again) to purchase all of CP''s international routes, which CP proudly and promptly rejected.

Out of the blue, enters Onex Corp. (Gerald Schwartz). Onex prides itself on buying troubled companies on the cheap, restructuring them, and selling them at a nice profit (see SkyChefs).

Onex Corp. (backed by AA) makes a bid for AC and CP, to merge AC with CP into one airline, remove AC from * alliance and have the new airline become a member of 1 world. CP shareholder accept the Onex offer.

AC challenges the bid in court - challenging that Onex+AA as a single shareholder would own more shares than allowable by law.
Judge rules in AC''s favor.

Onex walks away.
AC,with money from UA and LH, pays AA for its share in CP, and makes an offer to purchase the remainder of CP. CP shareholder accept the AC offer.

CP is gradually absorbed into AC.
Transition/acquisition/integration whatever you call it, is not smooth to say the least. Consumer complaints against AC reach an all time high. At one point, Robert Milton, CEO of AC, appears on Canadian TV ads offering a 90-day guarentee to improve things.

Fast forward to 2003, AC is in bankruptcy (chapter 11).

As far as employee benefits / retired employee benefits, I don''t know.

I can say that former AC and former CP employees do not get along to say the least. There were numerous issues with regards to seniority, pay, etc. There were reports of employees having fights in the parking lots, pilots not speaking with each other, FA''s having seperate union meetings, etc. etc. etc.