Air Canada Seeks To Operate Some Us Airways Flts

[Columbia blue]

Looks like that $75 million investment will stretch a long way for AC.



http://philadelphia.bizjournals.com/philad.../10/daily6.html

 

[BoeingBoy]

I think it's safe to say that ACE will get their $75 million back in 2-3 years without selling a share of the stock they bought....

Jim

 

[A330US]

What the heck does this mean
to me it looks like air canada wants to take over US,
what do you guys think
this is good or bad

 

[BoeingBoy]

The agreement says that:

* Jazz is entitled to any incremental increase in trans-border US/Canada flying using 70/90 seat RJ's as long as their terms are comparable to those of US Express, subject to any required regulatory approvals.

* US/HP will provide airport facilities for Air Canada on a competitive basis, subject to availability of those facilities

* US/HP will provide ACTS (the maintenance arm of ACE) with at least $280 million per year in maintenance work

* Expanded code-sharing between Air Canada & US/HP

* And, of course, ACE makes an equity investment of $75 million.

Jim

 

[A330US]

i think in a year ACE will get 75 mill back and us/hp will buy back shares

 

[phllax]

The AC code share opens another North American *Alliance carrier besides UA to take people to India, China, Korea and Japan. The only European destination they serve not served by US is TLV.

Does anyone else think it's about time US and AC started working more closely. When the US and Canada reached an open skies agreement, US was the only carrier not to open more destinations. All they did was shift gateway cities to the hubs from the old days. (eg: ERI-YYZ to PIT-YYZ, BOS-Montreal to PHL-Montreal). Any intelligent person in charge at US would have explored code-share possibilities back then.