Article regarding how ACE handled Air Canada, Jazz, Aeroplan, maintenance ops., and the results. ACE holding company is distributing the last $800 million or so to shareholders, while airline gets more-or-less nothing.
Any lessons for AMR (ACE = AMR; AA=AC; Eagle = Jazz; AAdvantage = Aeroplan; etc)???
Toronto Star Story
"... while Milton is often lauded as an industry visionary for blowing up the traditional airline concept in an era of low-cost competitors, not everyone is confident the "new" Air Canada is equipped to weather the coming storm.
Unlike other big network carriers, Air Canada no longer owns its own loyalty program, regional feeder airline Jazz or its former maintenance division. The business units were spun off by ACE as part of Air Canada's restructuring, shaped by Milton and other executives.
Depending on who you talk to, Milton's carve-out strategy was either a brilliant scheme to unearth hidden value for long-suffering investors or a financial pillaging that leaves the former flag carrier exposed to shifting winds in a notoriously unpredictable industry."
Any lessons for AMR (ACE = AMR; AA=AC; Eagle = Jazz; AAdvantage = Aeroplan; etc)???
Toronto Star Story
"... while Milton is often lauded as an industry visionary for blowing up the traditional airline concept in an era of low-cost competitors, not everyone is confident the "new" Air Canada is equipped to weather the coming storm.
Unlike other big network carriers, Air Canada no longer owns its own loyalty program, regional feeder airline Jazz or its former maintenance division. The business units were spun off by ACE as part of Air Canada's restructuring, shaped by Milton and other executives.
Depending on who you talk to, Milton's carve-out strategy was either a brilliant scheme to unearth hidden value for long-suffering investors or a financial pillaging that leaves the former flag carrier exposed to shifting winds in a notoriously unpredictable industry."
