AC and TRZ Agree to Terminate Arrangement

[Jean-Luc Monette]

No Air Transat pilot has been laid-off yet.

[GATRKGA]

If the deal happens, as laid-off employees, could Transat pilots not be integrated into anything? Do they run that risk?

AT employees won’t be laid-off anymore in a matter of days (and even if a notice has been sent; pilots are not yet officially on EI)

Sorry what? Why won’t transat pilots be laid off?

They’re set to be done April 23.

[DanWEC]

Always lots of speculation here that the purchase can just be reneged on for various reasons. I just can't see it happening.
If you sign a purchase agreement on a house to close 90 days later, and the market suddenly tanks 20%, prior to closing you can't just say "Well I'll buy it for less now." You could, but lose would your deposit, and you will also be sued by the seller. Without any ambiguity you are 100% bound to pay the seller the difference between your agreed price and whatever they end up selling it for, plus costs, at a minimum. It's a messy process, and with well established precedents.
Same applies here. The purchase is done. Unfortunately, TRZ has suddenly lost working capital in the last month, prior to the end of the closing period, but breaking the contract would be extremely costly and likely prohibitive. The crux of this merger though, is that AC didn't buy TRZ for it's revenue stream but for it's assets.
Not the best timing, nobody has a crystal ball- it is what it is. The market will return and the assets that Transat AT brings will still be intact and valuable.

As for my own speculations (Because isn't this site just about armchairing everything possible? )
I said from the get-go last year that Rouge would be rolled into mainline and dissolved. Transat would replace it.
I believe now that will still happen, but possibly with only about half the current TS seniority list. The bottom half could gradually get called back based on the economy ramping up over the next 6-12 months. Not a fun possibility for 300 guys and gals.

This is just based on vacancies vs economy, and a little bit of scotch. I'm really hoping there's a different outcome.

[jetpilot]

I believe the goal is to keep A.T separate then no fight for seniority and you can manage layoff separate CR is in a good position for that! probably the package from the government is one bigger package to AC to keep the AT deal .

[FL-280]

FL280

What do you think of the letter of Mr.Rovinescu this morning ? especially the last paragraph of page one.



jet

Lets see if all those conditions and approvals are met lol... you know AC can exit the deal on the pandemic basis alone right? If ac doesnt want ac wont buy it

[FL320]

FL280

What do you think of the letter of Mr.Rovinescu this morning ? especially the last paragraph of page one.



jet

If ac doesnt want ac wont buy it

But AC wants it so what is so hard for you to understand? The only ones who do not want it are few frustrated junior pilots.

you know AC can exit the deal on the pandemic basis alone right?

Tell us more about that...please re-read the details of the deal

[airboy1]

If you sign a purchase agreement on a house to close 90 days later, and the market suddenly tanks 20%, prior to closing you can't just say "Well I'll buy it for less now." You could, but lose would your deposit, and you will also be sued by the seller. Without any ambiguity you are 100% bound to pay the seller the difference between your agreed price and whatever they end up selling it for, plus costs, at a minimum. It's a messy process, and with well established precedents.

Actually if the house has changed in value because of a fault post inspection before close, yes the value has changed.
Just like TC imposing competitive restrictions on the merge, it will change the condition of the value.

No one is sharper than CR, if TRZ shareholders think they won the lottery, think again
Stock market agrees.

[DanWEC]

Lets see if all those conditions and approvals are met lol... you know AC can exit the deal on the pandemic basis alone right? If ac doesnt want ac wont buy it

Actually false, and completely the opposite. There is a pandemic clause in the contract that prevents it.

[DanWEC]

If you sign a purchase agreement on a house to close 90 days later, and the market suddenly tanks 20%, prior to closing you can't just say "Well I'll buy it for less now." You could, but lose would your deposit, and you will also be sued by the seller. Without any ambiguity you are 100% bound to pay the seller the difference between your agreed price and whatever they end up selling it for, plus costs, at a minimum. It's a messy process, and with well established precedents.

Actually if the house has changed in value because of a fault post inspection before close, yes the value has changed.
Just like TC imposing competitive restrictions on the merge, it will change the condition of the value.

No one is sharper than CR, if TRZ shareholders think they won the lottery, think again
Stock market agrees.

Comparing apples to oranges, I'm speaking from a market perspective, which is what this is.

[airboy1]

Actually false, and completely the opposite. There is a pandemic clause in the contract that prevents it.

Pandemic is not the clause, competitive restrictions imposed is the clause.

[FL320]

If the deal happens, as laid-off employees, could Transat pilots not be integrated into anything? Do they run that risk?

AT employees won’t be laid-off anymore in a matter of days (and even if a notice has been sent; pilots are not yet officially on EI)

Sorry what? Why won’t transat pilots be laid off?

They’re set to be done April 23.

Because you will read in the media pretty soon that AT will also use the CEWS

[WhatThe?]

It's $40million for AC to walk. The rest is your speculation.

[DanWEC]

It's $40million for AC to walk. The rest is your speculation.

That's been covered. It isn't.

[FL-280]

Lets see if all those conditions and approvals are met lol... you know AC can exit the deal on the pandemic basis alone right? If ac doesnt want ac wont buy it

Actually false, and completely the opposite. There is a pandemic clause in the contract that prevents it.

Hellllll no, go read the agreement. “Material adverse effect” it is on page 11. Point (e)
It only covers outbreaks of disease, an outbreak is not a pandemic or an epidemic.

Seems like you have been listening to the media and your buddies, AT is not covered in the case of covid 19.

[FL-280]

While you are at it read clause 7.2 termination. The purchaser termination clause.
Wrap your head around “disproportionate effect”

[FL-280]

Here you go, will even give to you as a gift so you turn off CBC or TVA nouvelles

[FL320]

Here you go, will even give to you as a gift so you turn off CBC or TVA nouvelles

Man you look so frustrated and desperate; it’s so funny

[DanWEC]

Here you go, will even give to you as a gift so you turn off CBC or TVA nouvelles

I assume that's the agreement, I have a copy already thank you.

1)While AC has much more expensive lawyers than my drinking buddies, our shared economic situation is definitely "in connection with" and most certainly "escalation" of an outbreak of disease.

2) Disproportionate Effect:
"relative to other entities operating in the airline industry or the segments of the travel, hotel
and tourism industries in which the Corporation and its Subsidiaries operate;"

Given the vast number of shutdowns and bankruptcies throughout the industries how would you prove this?

3) Nothing in 7.2 remotely applies unless TRZ misrepresented the company.

[aerodude]

Ofcourse the merge will happen. Probably at a lower share price. I've said it before:

On next bid there will be a massive surplus scaring a lot of pilots.
AC will recall all pilots as long as TRZ is allowed to operate with seperate seniority list.
End rouge
AC will buy TRZ at 10$ a share.

CR is ten steps ahead.

And then when they realize that they have a huge surplus, they have to furlough again... and suddenly TRZ is the only op left standing because labour costs are cheaper.

Magically there will be space for laid off AC pilots to join TRZ and do flying at a B scale. Take it or leave it.

[GATRKGA]

Can all us peasants just agree that CR has the upper hand right now to do as he wishes?

Likely, AC pilots remain on lay off and have the choice to fly for transat after all transat pilots have been recalled.

Lol, it’s going to be a fun year. Bring the lube. Everyone are all getting fuckked. At least FL280 can make eye contact while all are bent over for a moment of romance. Altiplano can join too.

[FL-280]

Just if the deal happens I dont get any lube... lol

[dialdriver]

Lol, it’s going to be a fun year. Bring the lube. Everyone are all getting fuckked. At least FL280 can make eye contact while all are bent over for a moment of romance. Altiplano can join too.

Get a room guys

[Fanblade]

The only person that matters is CR. No one here has any idea what he wants. That’s a fact. If he wants out he will probably try. If he wants to stay in the deal as is. He will. If he wants a reduced price. He will try that. My guess is the latter.

The groups will never be run separate if AC acquires TRZ. That’s a fact. Not permitted under the ACPA CBA.

TRZ/Rouge/Regionals will be forced to be much much smaller than they were heading into Covid. All of those entities are permitted under the ACPA CBA through a growth/shrink formula. If Mainline shrinks. Everything shrinks. That is a fact.

If we merge, my guess is we will but a reduced price, none of this theatre will influence seniority integration. Not one iota.

We will all be working for AC, either at mainline or Rouge/Transat. Mainline will be shrunk by about a third and Transat/Rouge/Regionals all shrinking with it.

[Sharklasers]

Can all us peasants just agree that CR has the upper hand right now to do as he wishes?

Likely, AC pilots remain on lay off and have the choice to fly for transat after all transat pilots have been recalled.

Lol, it’s going to be a fun year. Bring the lube. Everyone are all getting fuckked. At least FL280 can make eye contact while all are bent over for a moment of romance. Altiplano can join too.

Let me get this straight, In your magical fairy land fantasy acpa just gives up and dies on all our scope protections and cede all our leisure flying to you. Air Canada will recall all the Transat pilots and then staple on all the laid off Mainline pilots? Forgetting the fact that it won’t happen show me the part where “ Everyone are all getting fuckked.” as you say?

[aerodude]

Let me get this straight, In your magical fairy land fantasy acpa just gives up and dies on all our scope protections and cede all our leisure flying to you. Air Canada will recall all the Transat pilots and then staple on all the laid off Mainline pilots? Forgetting the fact that it won’t happen show me the part where “ Everyone are all getting fuckked.” as you say?

You haven't experienced FOS yet I guess.