Air Canada Matchmaker To U.s. Merger?

[BoeingBoy]

The view from north of the border....

Air Canada matchmaker to U.S. airline merger?

Jim

 

[FrugalFlyerv2.0]

This from today's Toronto Star:

"The secret to Air Canada's bid to invest nearly $150 million (U.S.) in a company comprised of potential merger partners US Airways Group Inc. and America West Holdings Corp. may rest in an 80,000-squareS-foot maintenance hangar that looms over Winnipeg International Airport.

Becoming an investor in the struggling U.S.-based airlines, which have been engaged for weeks in merger talks, might give Air Canada an advantage in winning lucrative technical service contracts, analysts and airline consultants say."

AC wants the maintenance work

 

[700UW]

AC did bid on the Airbus work when US decided to outource is, and interesting enough, AC's bid was cheaper then ST MAE's, hmm, wonder why it ended up in Alabama instead of Canada?

 

[Rico]

If you think in terms of overlap, the combo of US/HP and AC has amoung the least possible, with strong international growth possibilities (with the additional US domestic feed added onto AC flights)

It could lead to the realization of what the Star Alliance was advertised to be...

 

[funguy2]

Well, with the rumored order for A350's as part of the financing deal, its hard to argue that the combined US-HP will try to spin off the international or long-haul network...

So while there may be some feed opportunities between US-HP and AC, that does not seem to be the main focus of the deal... As I speculated in previous threads...

My previous speculations centered on the potential for AC to sell/lease its A330's to US-HP as replacements for US's 762's... Assuming AC's recent order of B777 and B787 would be replacing thier A330/A340 fleet... That was my previous speculation based on US-HP settling on a single long-haul fleet + finding some growth airplanes (use the Airbus order and/or AC aircraft to first replace the B762's, then grow). Perhaps I was right in that US-HP is already shopping around for additional wide-body / long-haul aircraft?

AC looking for work is another good reason for them to get involved. I suspect AC will not be looked upon favorably if they have to close their Winnipeg MX base. They, like Airbus, would simply be looking to secure the future of US-HP in order to secure future work. I seem to see a trend developing here... Air Wisconsin, Airbus, AC, Republic. The only potential investor mentioned in the press not poised to benefit as a supplier to US-HP is PAR Investment group. Also, we have yet to hear from TPG or RSA... I think there is still a lot more work to be done on this deal.

 

[fanlube]

This from today's Toronto Star:

"The secret to Air Canada's bid to invest nearly $150 million (U.S.) in a company comprised of potential merger partners US Airways Group Inc. and America West Holdings Corp. may rest in an 80,000-squareS-foot maintenance hangar that looms over Winnipeg International Airport.

Becoming an investor in the struggling U.S.-based airlines, which have been engaged for weeks in merger talks, might give Air Canada an advantage in winning lucrative technical service contracts, analysts and airline consultants say."

AC wants the maintenance work

[post="270346"][/post]​

Isn't it ironic that all the guys who voted against that last proposal tried to tell all the yes voters that the next round of concessions the company would get all of overhaul, well guys it ain't looking good!!

 

[FrugalFlyerv2.0]

If you think in terms of overlap, the combo of US/HP and AC has amoung the least possible, with strong international growth possibilities (with the additional US domestic feed added onto AC flights)

It could lead to the realization of what the Star Alliance was advertised to be...

[post="270393"][/post]​

The only positive I see for US/HP in this deal is cash.
Besides exotic destinations in the Great White North, where can AC take a pax from a US/HP flight that UA doesn't? Or LH? Or other * alliance airline?

AC could be a winner in this transaction because for a few hundred million:
1) AC gets maintenance work on US/HP aircraft which in turn increases the value of AC maintenance division that AC is thinking of selling
2) AC has potential to get more revenue on its slew of transborder flights by US/HP codeshare (in addition to existing UA codeshare)
3) AC could sell its stake in US/HP entity making a slight profit (or at least breaking even)
4) AC potentially finds a sucker to take the A340/A330 fleet off their hands in the future

Potential problem for AC:
1) how will AC's unions react to AC's investment in US/HP given that they just gave concessions to AC management?
2) AC management distracted by this deal, leads to Westjet making more gains in Canada

 

[CLT-Douglas]

Correct me if I'm wrong but Air Canada has a fleet of 8 A330's and 12 A340's. That equals 20 aircraft. It could just be a coincidence, but it is interesting that it's the same number of A350's that has been mentioned for future orders.

 

[justaumechanic]

You can bet the next time around ACTS will win without a fight.. Bank on it.

Pittsburgh S check, gone. Pittsburgh Heavy Maintenance, Gone..

AC did bid on the Airbus work when US decided to outource is, and interesting enough, AC's bid was cheaper then ST MAE's, hmm, wonder why it ended up in Alabama instead of Canada?

[post="270359"][/post]​