Air Canada President & CEO steps down

[ALLYCAT]

WIth the president and ceo stepping down it sounds like air canada is in trouble again. Wondering what impact this will have on Jazz?

[Uccmal]

I wouldn't think it will be very positive since Air Canada in receivership can rewrite all the contracts as they see fit.  I cant believe this is happening again.  Somebody should take Robert Milton out back and shoot him.

[ubuy2wron]

Shooting R Milton is too kind I suggest we send him on around the world trip on AC and then turn him over to the baggage handlers and the flight attendants now that would be justice.  LOL

[Uccmal]

But that would be a fate worse than death.  :P

[Viking]

Milton obviously is an incredible salesman...

 

The real question is who continues to fund this train wreck? When they restructure who is it that will continue to buy the new bonds and/or stock?

 

I thought about Westjet as an opportunistic investment....

[Uccmal]

The real question is who continues to fund this train wreck? When they restructure who is it that will continue to buy the new bonds and/or stock?

 

Well, It wont be me but in one guise or another Air Canada will be recreated. 

 

Viking:  Intangible reasons to avoid West Jet:

 

1) I would prefer if they stopped expanding and concentrated on Shareholder value, forever.  Unfortunately, they are intent on constantly increasing their size.  This is going to have at least a couple of unintended effects:

a) It will make them big enough that their business model gets weakened.  The existing model will not work as an international carrier.  They will shortly bump into competitors of equal capability in the US and Europe.

b) It will put them into the sights of the Feds who will want to see them service areas that aren't getting service.  That will weaken margins and the business model. 

 

2) The business model itself takes continuous tending.  Everything needs to run as a team.  It takes extraordinary management to keep planes in the air 18 hours per day, and extraordinary logistics when there are issues.  When there is bad weather for a couple of days in a West Jet hub (TO/Calgary) the entire house of cards comes down.  Less profitable airlines keep extra planes and staff to soak up the excess created in such a situation.  West Jet goes hell bent for days after to catch up.  At some point they will need to add excess staff/planes etc to prevent wide scale disruptions.  This adds to cost.

 

3) Related to the other thoughts.  With increasing size comes increasing bureaucracy and associated cost. 

 

4) Need to hire more mechanics/maintenance and airport staff.  Inevitable labour problems will arise that have always plagued primary carriers everywhere.  These staff are highly trained and highly skilled, very important and they know it!

 

5) An upstart (east jet) will start to erode West Jets intitial markets as West Jet expands to bigger markets.

 

I guess the whole post can be summed up as Bigger is not always better!

 

[calonego]

is there a worse industry?

NA autos maybe? But autos in general isn't as bad as airlines...

I did look at the leasors for a time... but they just support the stupidity.

A leasor run by non-airline guys, the ones calling the shots are financial engineers, can be alright... maybe...

thoughts?

[Partner24]

"is there a worse industry?"

 

Insurance?

 

Bad news first, it's an industry that is run by some of the most idiots people out there.

 

Ok, here is the good news:

 

It's an industry that is run by some of the most idiots people out there.

 

[ubuy2wron]

I just flew West Jet for the first time will fly them again for sure that said West Jets biggest strength was AC's weakness if AC goes thru another bankruptcy it will no longer be weak.