Air Transat considering 80-person layoff amid financial turbulence

[Brakefans]

Over the years, TRZ has cut most of its domestic flying. They no longer operate out of western Canada. Even YYZ has lost flights to Florida and prime destinations such as BCN. Transat’s way out is to grow and outpace its climbing debt. That’s not going to happen if they cut routes, have a stagnant fleet and keep loosing money.

[thepoors]

I can see it go a bit like when Lynx went under. Orderly shutdown, 2-3 airlines divvy up the A321/A330 fleet directly with lessors and PKP steps in to buy the Transat brand for a relaunch. Pilots get hired by AC/WS/Porter and life goes on.

AC's new contract leaves plenty of scope room for this exact scenario. I don't think that's an accident...it won't be long before Rouge is operating wide-bodies again.

[Babar350]

I can see it go a bit like when Lynx went under. Orderly shutdown, 2-3 airlines divvy up the A321/A330 fleet directly with lessors and PKP steps in to buy the Transat brand for a relaunch. Pilots get hired by AC/WS/Porter and life goes on.

AC's new contract leaves plenty of scope room for this exact scenario. I don't think that's an accident...it won't be long before Rouge is operating wide-bodies again.

Hold on you're saying the company won't be able to renegotiate its debt mostly held by the Federal Government? Something does not add up.
PKP buying Transat without the planes doesn't make any sense.
2 outcomes come to my mind. Transat folds into AC and becomes the Rouge. Transat gets refinanced and is attractive to another airline. Unless the provincial government steps in and PKP buys the company when the share is around $1.

[thepoors]

I can see it go a bit like when Lynx went under. Orderly shutdown, 2-3 airlines divvy up the A321/A330 fleet directly with lessors and PKP steps in to buy the Transat brand for a relaunch. Pilots get hired by AC/WS/Porter and life goes on.

AC's new contract leaves plenty of scope room for this exact scenario. I don't think that's an accident...it won't be long before Rouge is operating wide-bodies again.

Hold on you're saying the company won't be able to renegotiate its debt mostly held by the Federal Government? Something does not add up.
PKP buying Transat without the planes doesn't make any sense.
2 outcomes come to my mind. Transat folds into AC and becomes the Rouge. Transat gets refinanced and is attractive to another airline. Unless the provincial government steps in and PKP buys the company when the share is around $1.

I don't think they will slip out of those gov loans as easily as you seem to think. Any government that allows that to happen (with maybe the exception of the Bloc) will not be very popular for very long.

[Localizer]

AC's new contract leaves plenty of scope room for this exact scenario. I don't think that's an accident...it won't be long before Rouge is operating wide-bodies again.

Hold on you're saying the company won't be able to renegotiate its debt mostly held by the Federal Government? Something does not add up.
PKP buying Transat without the planes doesn't make any sense.
2 outcomes come to my mind. Transat folds into AC and becomes the Rouge. Transat gets refinanced and is attractive to another airline. Unless the provincial government steps in and PKP buys the company when the share is around $1.

I don't think they will slip out of those gov loans as easily as you seem to think. Any government that allows that to happen (with maybe the exception of the Bloc) will not be very popular for very long.

Incase you haven’t noticed .. the Liberals are done come the next election. What’s a $700 million dollar loan mean in a sea of billions upon billions wasted by this government? What about the $60 billion to build (useless) battery plants? SDTC scandal? The time to worry about your tax dollars was 2 election cycles ago.

Governments have a long track record of bailing Canadian companies out, Conservatives are no different. Harper forgave billions in loans to Chrysler and GM.

Canadian airlines, as a whole, are not in a great financial position.

[fish4life]

The only chance is if the liberals are still in power by the time they need assistance. If you think a conservative government is going to bail out a Quebec company you are wrong or the other airlines are going to ask for free cash as well. The Quebec government might help but it will come with restrictions and probably more shrinkage.