Canjet going under (again)?

[fingersmac]

CanJet takes first step to resuming airline operations

http://business.financialpost.com/2013/ ... perations/

[AvJet]

Anyone have any idea what's cooking ?

CanJet takes first step to resuming airline operations
Scott Deveau | 13/03/15 6:38 PM ET
CanJet Airlines appears to be once again laying the groundwork for a scheduled service, this time between Canada and Europe and to several sun destinations.
The Halifax-based charter airline’s parent company, I.M.P. Group Ltd., was granted several large aircraft licenses this week that would allow CanJet to provide scheduled service between Canada and the 27 European member states, Antigua and Barbuda, Costa Rica, and Barbados.
I.M.P. Group did not return calls Friday for comment. But CanJet’s management has met with the leadership of at least one of its unions in recent weeks and said there are some plans in the works.
CanJet currently operates a charter airline business primarily by subcontracting its fleet of Boeing 737 aircraft to Transat A.T. and providing pilots and crew for its flights under their so-called ‘wet lease’ arrangement.
Transat is in the midst of determining whether to extend its partnership with CanJet or whether it will purchase its own fleet of 737s.
A decision from Transat is expected within weeks, and that has raised questions about what will happen if Transat opts not to extend their partnership when their current five-year agreement expires on April 30, 2014.
Chantal Laflamme, spokeswoman for the Canadian Transportation Agency, said under its new scheduled international licenses, CanJet services would be offered under its own name. Although CanJet could apply to wet lease its planes or enter into a code-share agreement with another airline to fly on their behalf.
It hasn’t applied for either for its new licenses at this point, she said.
Chantal Bourgeois, national representative for CUPE local 4044, which represents roughly 450 CanJet flight attendants, said she met with management, including president Stephen Rowe, last month.
She said Mr. Rowe said he was in the midst of working on a plan for CanJet’s future, but said he wouldn’t be able to discuss it in more detail until at the end of March.
“He was reassuring about the future, but he wasn’t able to give us any detail,” Ms. Bourgeois said. “We will see at the end of the month.”
The Air Line Pilots Association, which represents CanJet’s pilots and which is in the midst of contract talks with the airline, was unaware of any application for scheduled service.
“The company has not discussed or disclosed such possiblities,” the union said in an email, adding the first it heard of it was through an Internet search.
CanJet operated as a schedule discount airline in Canada and the U.S. before abandoning that business in 2006 in the face of intense competition and rising fuel prices to focus on its charter operations.

[Gilles Hudicourt]

http://www.prnewswire.com/news-releases ... 17561.html

Transat A.T. Inc. to internalize medium-haul operations in 2014

Permanent and seasonal Boeing B737 narrow-body aircraft will be added to the Air Transat fleet
MONTREAL, April 4, 2013 /CNW Telbec/ - Transat A.T. Inc., one of the largest integrated tourism companies in the world and Canada's holiday travel leader, will add Boeing B737 narrow-body jets to Air Transat's fleet, which currently comprises Airbus A310 and A330 wide-body aircraft, beginning in 2014. In so doing, the company will internalize its medium-haul operations outbound from Canada to sun destinations in Mexico, the Caribbean and Florida, for which it has relied on a third-party partner since 2003.
Some of the new aircraft will be permanently attached to the fleet. In winter, when demand on sun destination routes is higher, additional aircraft will be introduced on a seasonal basis. Eventually, Transat plans to operate five narrow-body aircraft permanently and six seasonal aircraft in winter.
Air Transat's wide-body fleet, which operates on the transatlantic market on an annual basis, will continue to serve certain sun destinations as well. In the years to come, the number of wide-body aircraft will be reduced and third-party carriers could be used in high season. In the same spirit, Transat should maintain its business relationship with its current partner, CanJet Airlines, beyond April 30, 2014 for certain flights. This strategy aims to ensure a so-called "accordion" fleet that meets the needs of the tourism market.
In preparation for the introduction of narrow-body aircraft to its fleet, Air Transat recently reached agreements with its employees that will enable a reduction in operating costs. Internalization of medium-haul operations, including the impact of the said agreements, should generate savings of some $8 million in 2013, $15 million in 2014 and $30 million per year in 2015 and beyond. In addition to the positive impact on operating costs, the grouping of operations under the same roof will pave the way for increased standardization of services to travellers and customer experience.
"A return to profitability remains our primary goal, and operating costs, particularly air costs, are an essential factor in profitability for any tour operator," said Jean-Marc Eustache , President and Chief Executive Officer of Transat. He added: "Internalizing medium-haul operations has several advantages, including increased control over our aviation operations, the implementation of a more competitive cost structure and having Air Transat cabin crews on all of our flights."
Every year, Transat markets more than 1 million round-trip seats outbound from Canada to sun destinations, mainly in the winter season, and more than 1 million round-trip seats on the transatlantic market between Canada and some 30 European destinations, mostly in summer.
About Transat
Transat A.T. Inc. is an integrated international tour operator with more than 60 destination countries and that distributes products in over 50 countries. A holiday travel specialist, Transat operates mainly in Canada and Europe, as well as in the Caribbean, Mexico and the Mediterranean Basin. Montreal-based Transat is also active in air transportation, accommodation, destination services and distribution. Transat's firm commitment to sustainable tourism development is reflected in its multiple corporate responsibility initiatives. (TSX: TRZ.B, TRZ.A).
SOURCE TRANSAT A.T. INC.

[777LR]

http://www.prnewswire.com/news-releases ... 17561.html
when demand on sun destination routes is higher, additional aircraft will be introduced on a seasonal basis. Eventually, Transat plans to operate five narrow-body aircraft permanently and six seasonal aircraft in winter.

Where will those seasonal aircraft come from? Europe?

[Brmac]

Gilles, can I ask you why you would post this under the topic "Canjet going under (again)?" ?!?
Not very appropriate, nor considerate.

[Gilles Hudicourt]

Gilles, can I ask you why you would post this under the topic "Canjet going under (again)?" ?!?
Not very appropriate, nor considerate.

I would have done the same regardless of what the decision was, because it is directly related to the thread. Had the news been "Transat is renweing the contract", this would still be an appropriate place to post it. But in any case, did you read this part ?

In the same spirit, Transat should maintain its business relationship with its current partner, CanJet Airlines, beyond April 30, 2014 for certain flights. This strategy aims to ensure a so-called "accordion" fleet that meets the needs of the tourism market.

[rudder]

Underbid CanJet? Ok think what you want, but in case you didn't get the memo, it's been affirmed no one did. If you think perhaps Transat are more interested in a different model, you might be right. Maybe they are interested in CanJet.

You seem to be ignoring that there is a bigger picture for Groupe Transat. The narrowbody lift is just one piece of the puzzle and represents merely a fraction of the overall costs of their many businesses. If Groupe Transat can leverage the situation to achieve cost reductions across the board at airTransat, then it could potentially justify a marginally higher than CJ expense to operate the narrowbody lift using airTransat in exchange for a gross expense reduction that CJ alone is incapable of offering within its limited role.

YHZGOOSE.

I hate to say that I told you so........according to the official press release the AT unions offered annualized cost savings that significantly eclipsed any savings that could be captured within the existing CJ service agreement. That and a clear desire of Groupe Transat to exert greater quality control over product meant that an extension of the full CJ service agreement was never really in the cards. Looks like they are willing to do something seasonally and on a diminished basis though with CJ. Ball is in KR's court. And if CJ is not interested, I am sure that there are other Canadian based 737 operators that will be.

[Gilles Hudicourt]

Where will those seasonal aircraft come from? Europe?

We do not know yet, only rumours that it may be XL France.

[Wheels]

Anyone have the number from that truck driving school?
F*** me

[rudder]

Anyone have the number from that truck driving school?
F*** me

It will be interesting to see how CJ will deal operationally with the 2013/2014 season for Transat as the exodus of CJ pilots is already well under way. And if the door closes on seasonal foreign pilots then the staffing problem at CJ will be exacerbated. Wonder if this issue is also part of the Groupe Transat/CJ discussions? Perhaps the answer is for airTransat to start hiring this year for the 2014 internal 737 program but place the new-hires at CJ for the 2013/2014 winter season. Might create hiring opportunities for projected surplus CJ pilots at airTransat. Food for thought.

[Wheels]

Anyone have the number from that truck driving school?
F*** me

It will be interesting to see how CJ will deal operationally with the 2013/2014 season for Transat as the exodus of CJ pilots is already well under way. And if the door closes on seasonal foreign pilots then the staffing problem at CJ will be exacerbated. Wonder if this issue is also part of the Groupe Transat/CJ discussions? Perhaps the answer is for airTransat to start hiring this year for the 2014 internal 737 program but place the new-hires at CJ for the 2013/2014 winter season. Might create hiring opportunities for projected surplus CJ pilots at airTransat. Food for thought.

Yes, but probably bottom seniority YYZ based F.O.

[Scuba_Steve]

Anyone have the number from that truck driving school?
F*** me

It will be interesting to see how CJ will deal operationally with the 2013/2014 season for Transat as the exodus of CJ pilots is already well under way. And if the door closes on seasonal foreign pilots then the staffing problem at CJ will be exacerbated. Wonder if this issue is also part of the Groupe Transat/CJ discussions? Perhaps the answer is for airTransat to start hiring this year for the 2014 internal 737 program but place the new-hires at CJ for the 2013/2014 winter season. Might create hiring opportunities for projected surplus CJ pilots at airTransat. Food for thought.

I personally don't forsee TS hiring many if any drivers for the 737's, simply due to reductions in the wide body fleet, all the laid off guys and gals should get a call back hopefully sooner than later and perhaps a few new hires? I'm speculating based off the numbers we've been given..I think the numbers will stay more or less status quo.

[Spaceshuttle]

Haha, enjoy "status quo" ... Rouge and Sunwing are coming...
All is well!

[rudder]

Anyone have the number from that truck driving school?
F*** me

It will be interesting to see how CJ will deal operationally with the 2013/2014 season for Transat as the exodus of CJ pilots is already well under way. And if the door closes on seasonal foreign pilots then the staffing problem at CJ will be exacerbated. Wonder if this issue is also part of the Groupe Transat/CJ discussions? Perhaps the answer is for airTransat to start hiring this year for the 2014 internal 737 program but place the new-hires at CJ for the 2013/2014 winter season. Might create hiring opportunities for projected surplus CJ pilots at airTransat. Food for thought.

Yes, but probably bottom seniority YYZ based F.O.

The reality is that based on the structure of the proposed Transat 737 operation (seasonal fleet variation 5 summer/11 winter) that it presents a unique opportunity to consider a meaningful crew interchange agreement. The upside to Transat is cost savings on training based on hiring already qualified 737 pilots. The upside for CJ is it may stem the pilot exodus based on an obvious projected crew surplus commencing in 2014. AT ALPA obviously want all of their layoffs recalled to permanent jobs ASAP. A crew interchange agreement could accelerate those recalls into 2013. They will also want to protect all left seat opportunities at the new year round 737 operation, but need to recognise that it would appear that Groupe Transat still intend to subcontract 6 crewed 737's for winter operations which would place those seasonal left seats out of reach anyway.

As I said, this is a unique opportunity for a progressive crewing solution using only Canadian pilots.

[Scuba_Steve]

Haha, enjoy "status quo" ... Rouge and Sunwing are coming...
All is well!

Indeed they are, the Vacation market is already overcrowded and likely to get worse, I foresee a blood bath, who will it be? TS? Sunwing? AC? time will tell..

[Brmac]

Indeed they are, the Vacation market is already overcrowded and likely to get worse, I foresee a blood bath, who will it be? TS? Sunwing? AC? time will tell..

I suspect you might be correct before too long. I do feel badly for CJ though.

[rudder]

Gilles, can I ask you why you would post this under the topic "Canjet going under (again)?" ?!?
Not very appropriate, nor considerate.

I would have done the same regardless of what the decision was, because it is directly related to the thread. Had the news been "Transat is renweing the contract", this would still be an appropriate place to post it. But in any case, did you read this part ?

In the same spirit, Transat should maintain its business relationship with its current partner, CanJet Airlines, beyond April 30, 2014 for certain flights. This strategy aims to ensure a so-called "accordion" fleet that meets the needs of the tourism market.

Gilles,

How about posting the AT B737 pay rates?

[mbav8r]

This article has more on the intention to continue a relationship with Canjet. My initial reaction is, Transat used this as a way to extract further concessions than the ones previous(wage freeze), now it's only 5 permanent, 6 seasonal. Curious as to the promises that were made, did they imply the entire narrowbody would be brought in house, was that question even asked, were the concessions based on a minimum amount brought in? How many 37s does Canjet operate for Transat? What about the recent relationship with Enerjet, will that continue?
Somethings not right about this, seems like the unions might have been duped.
http://business.financialpost.com/2013/ ... th-canjet/
Transat said it would maintain its relationship with CanJet after the expiration of their current partnership on April 30, 2014, to help with its so-called “accordion fleet” that expands during busy months and contracts when demand drops off.

“We intend to maintain a business relationship on a smaller scale,” said Debbie Cabana, Transat spokeswoman. “Negotiations are underway.”

Some of the new 737s will be permanently attached to the fleet. But, eventually, Transat plans to operate five narrow-body on a permanent basis, and six seasonal aircraft in the busy winter months, the company said.

"At the same time, Transat said intends to reduce the number of wide-body aircraft in its fleet, which it uses to fly across the Atlantic, and rely on a third party to help with lift during the busier months."

Sounds like they plan on using Wetlease for uplift, guess the old" if you can't beat em join em", has come to fruition. Gilles you may have another fight on your hands, this time with your own company!

[Gilles Hudicourt]

The contract with Canjet was for 5 permanent 737s and a variable number of seasonal aircraft according to needs. Last winter, Canjet went up to 12 aircraft with 7 additional ones. However, they lost one or two of those aircraft that had been leased from XL Germany when the latter went under and the aircraft had to be returned to their owners.

The Enerjet contract, and I'm just speculating, may have been to make up for those lost aircraft........

Gilles

[rudder]

This article has more on the intention to continue a relationship with Canjet. My initial reaction is, Transat used this as a way to extract further concessions than the ones previous(wage freeze), now it's only 5 permanent, 6 seasonal. Curious as to the promises that were made, did they imply the entire narrowbody would be brought in house, was that question even asked, were the concessions based on a minimum amount brought in? How many 37s does Canjet operate for Transat? What about the recent relationship with Enerjet, will that continue?
Somethings not right about this, seems like the unions might have been duped.
http://business.financialpost.com/2013/ ... th-canjet/
Transat said it would maintain its relationship with CanJet after the expiration of their current partnership on April 30, 2014, to help with its so-called “accordion fleet” that expands during busy months and contracts when demand drops off.

“We intend to maintain a business relationship on a smaller scale,” said Debbie Cabana, Transat spokeswoman. “Negotiations are underway.”

Some of the new 737s will be permanently attached to the fleet. But, eventually, Transat plans to operate five narrow-body on a permanent basis, and six seasonal aircraft in the busy winter months, the company said.

"At the same time, Transat said intends to reduce the number of wide-body aircraft in its fleet, which it uses to fly across the Atlantic, and rely on a third party to help with lift during the busier months."

Sounds like they plan on using Wetlease for uplift, guess the old" if you can't beat em join em", has come to fruition. Gilles you may have another fight on your hands, this time with your own company!

The AT pilots must know that their claim to employment security is just one notch above the CJ pilots. So I suspect that the language that might be referenced to prevent partially subcontracted widebody or narrowbody lift will be viewed within the broader context of the realities of the rapidly evolving competitive environment.

Employment security does not come from a collective agreement, it comes from a competitive and profitable employer. I suspect that the AT pilots will take an enlightened view provided that the current AT seniority list pilots are protected.

[TopperHarley]

FOs year 1 is $50,000, up to $71,500 by year 7. Captains year 1 is $90,000, up to $132,000 year 7. If you get bumped off the 330/310 onto the narrowbody you keep your current payrate for a period based on your years of service, up to a maximum of 5 years.

[rudder]

FOs year 1 is $50,000, up to $71,500 by year 7. Captains year 1 is $90,000, up to $132,000 year 7. If you get bumped off the 330/310 onto the narrowbody you keep your current payrate for a period based on your years of service, up to a maximum of 5 years.

Thx.

[Gilles Hudicourt]

Sounds like they plan on using Wetlease for uplift, guess the old" if you can't beat em join em", has come to fruition. Gilles you may have another fight on your hands, this time with your own company!

This is what I had been wanting to avoid at all costs and what I had been warning against.

We can only block Transat from doing something if we are able to block other companies also. The field must be level.

I hope that Transat will not resort to Foreign Wet-Leases or to Foreign pilots unless in strict compliance of the Laws and Regulations of this country.

[mbav8r]

I know one of the recent ALPA Canada board updates made a reference to foreign wetlease and that they had made headway with the CTA. Their position is, it is supposed to be a short term solution, not a going concern. I hope the implied promises from the CTA to re evaluate the current wetlease rules and how to apply them will put an end to this, including the TC/Westjet 57 program.

[Gilles Hudicourt]

Narrow body Payscale at AT, as requested