AC and TRZ Agree to Terminate Arrangement

[altiplano]

"Rationalize capacity."

ie. fewer flights, less metal.

[tsgas]

"Rationalize capacity."

ie. fewer flights, less metal.

fewer people

[ayseven]

PKP is not a good politician, maybe (I hate his politics), but he runs a good show at Videotron. He is, however, pretty anti-union. Just ask the Journal de Montreal people. I'd be careful wishing for him to be my patron.

[Localizer]

As we enter the last week of January 2021, will we finally hear the governments position on this deal? Or will we continue to wait on the EU, which is probably waiting on the Canadian government?

[rudder]

As we enter the last week of January 2021, will we finally hear the governments position on this deal? Or will we continue to wait on the EU, which is probably waiting on the Canadian government?

EU will be acting independently. Current forecast decision date is Feb 09.

If there is anybody ‘waiting’ it is the feckless Canadian government.

[TheStig]

Bit of a standoff going on between the Government and airlines. Airlines want money and a say in the countries travel restrictions and implementation. The government wants service to small communities and refunds issued. The government also has the merger approval as leverage over Air Canada but only if the EU approves it first, so they're going to wait and see.

It all sounds simple to sound-off on, but really each of these issues are enormous hurdles in themselves. One issue I have is with respect to the matter of refunds, where naturally everyone is pointing fingers at the airlines. However they are only following the new and improved "Passenger Bill of Rights" in which the CTA confirmed that vouchers were sufficient. While the government is stating "not one Pennie...." they only have their own feckless legislation to blame.

https://otc-cta.gc.ca/eng/statement-vouchers

[iflyroads]

As we enter the last week of January 2021, will we finally hear the governments position on this deal? Or will we continue to wait on the EU, which is probably waiting on the Canadian government?

EU will be acting independently. Current forecast decision date is Feb 09.

If there is anybody ‘waiting’ it is the feckless Canadian government.

Looks like the deadline has been suspended..probably pending information from either party.


https://ec.europa.eu/competition/elojad ... e=2_M_9489

[columbia]

https://www.985fm.ca/nouvelles/politiqu ... drainville

Canadian govnmt soon to announce its approval

[termerair]

Canadian govnmt soon to announce its approval

They also said they would quickly help the airline sector... This was back in October! I guess we don't have the same definition of the words "soon" and "quick"...

[tsgas]

Canadian govnmt soon to announce its approval

They also said they would quickly help the airline sector... This was back in October! I guess we don't have the same definition of the words "soon" and "quick"...

"Quick" isn't that what they used to make chocolate milk ?

[seriousflyer]

Is it true that the their is a deadline of Feb 15th to receive approval, after that, Air Canada can cancel the deal ?

[iflyroads]

Is it true that the their is a deadline of Feb 15th to receive approval, after that, Air Canada can cancel the deal ?

That's the way I understand it as well, without paying any termination fees.

However both parties can also agree to extend this deal beyond the Feb 15th deadline. I expect some news to be timed around the earnings report later this month. (No inside info, just a guess)

[Localizer]

I’m sorta surprised we haven’t heard a decision from the Canadian government. I would have bet that this past week would come with an announcement.

[TFTMB heavy]

Is it true that the their is a deadline of Feb 15th to receive approval, after that, Air Canada can cancel the deal ?

That's the way I understand it as well, without paying any termination fees.

However both parties can also agree to extend this deal beyond the Feb 15th deadline. I expect some news to be timed around the earnings report later this month. (No inside info, just a guess)

30 millions to pull out on February 15th.

[iflyroads]

Is it true that the their is a deadline of Feb 15th to receive approval, after that, Air Canada can cancel the deal ?

That's the way I understand it as well, without paying any termination fees.

However both parties can also agree to extend this deal beyond the Feb 15th deadline. I expect some news to be timed around the earnings report later this month. (No inside info, just a guess)

30 millions to pull out on February 15th.

I thought it was renegotiated that if the appropriate regulatory approvals were not aquired by the deadline there would be no break fee involved by either party?

I could be wrong. My apologies, my legalese is not very proficient.

[FL-510]

For the purposes of this Agreement, "Reverse Termination Fee" means:

(a) if any Key Regulatory Approval that has not been made, given or obtained at the time of
the Reverse Termination Fee Event could not have been made, given or obtained
[redacted: certain specified condition], $10,000,000; and

(b) in all other circumstances, $30,000,000.

(7) If a Reverse Termination Fee Event occurs, the Purchaser shall pay or cause to be paid to the
Corporation, by wire transfer of immediately available funds to an account designated by the
Corporation, the Reverse Termination Fee within five (5) Business Days following such Reverse
Termination Fee Event.

[airboy1]

Knowing the government, we will probably get the approval on the 14th. Just a matter of days IMO. Looking forwards to flying again!

[Loon-A-Tic]

I suspect the approval will come, what AC does with it however is a very different question.

[tsgas]

I suspect the approval will come, what AC does with it however is a very different question.

Things are getting worse by the day with higher Nav Can fees, higher AIP fees, higher airport fees , and increased Carbon Taxes coming. AC , along with all the other airlines are bleeding cash at an unsustainable rate.

[Thorjones]

With the deadline 5 days away, Is there any news on this that I may have missed? Any company rumblings?

[Boreas]

This deal need to f&@k off already. Either way, I don't even care.

Its worse than brexit.

[tsgas]

This deal need to f&@k off already. Either way, I don't even care.

Its worse than brexit.

It's not about you.

[Boreas]

Neither was brexit. Still super annoying.

[Cappo1]

Is it true that the their is a deadline of Feb 15th to receive approval, after that, Air Canada can cancel the deal ?

That's the way I understand it as well, without paying any termination fees.

However both parties can also agree to extend this deal beyond the Feb 15th deadline. I expect some news to be timed around the earnings report later this month. (No inside info, just a guess)

According to what I heard on a deadhead from a very viable source AC will pass on it . Not viable anymore. Might work out better for Transat. They can use their reputation to secure better solo opportunities.

[Cappo1]

Not gonna happen. Look around at the global situation. It was a great concept 2 years ago. Sometimes you have to take a loss if it means saving yourself. TS will be ok , you have the best reputation to compete with the new upstarts. AC will bury it in their tax credit . There is a pandemic clause.