Chorus Aviation wins long-running rate dispute with AC
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Chorus Aviation wins long-running rate dispute with AC
We'll see how long the happy music keeps playing. I hope it's for a while but only time will tell.
Chorus Aviation shares jump after it wins long-running rate dispute with Air Canada
Scott Deveau | 26/11/13 8:40 AM ET
"We are pleased that the arbitration panel has ruled in favour of Jazz and that we can now move forward with certainty," said Joseph Randell, Chorus chief executive, said in a statement.
Shares in Chorus Aviation Inc. jumped by nearly 30% in early morning trading Tuesday after the company said it won its protracted battle with Air Canada over how much it is paid to perform regional flying on behalf of the country’s largest carrier.
The news is a welcomed relief for the parent company of Jazz Aviation.
The dispute has been tied up for years, weighed heavily on Chorus’ shares throughout, and even caused a precautionary move that cut its annual dividend in half last May.
Chorus’ shares fell nearly 40% in the aftermath of the dividend cut. They had pared some of those losses, but were still down nearly 25% prior to the announcement Tuesday.
“We are pleased that the arbitration panel has ruled in favour of Jazz and that we can now move forward with certainty,” said Joseph Randell, Chorus chief executive, said in a statement.
He added that Chorus was committed to maintaining its 30 cent per share annual dividend. But given its strong cash flow and liquidity position due to the favourable ruling the board would be exploring “all alternatives to further enhance shareholder value.”
At the heart of the dispute was how much Chorus is paid over and above its controllable cost through its long-standing partnership with Air Canada.
Air Canada argued the mark up rate should be in the range of 7% to 10% while Chorus maintained it should remain at 12.5%.
In a worse-case scenario if the arbitration panel sided with Air Canada, this could have triggered back payments of up to $157-million from Chorus dating back to 2010 when the dispute arose.
Chorus said Tuesday the arbitration panel reviewing matter found no justification for changing the rate from 12.5%, putting an end to the dispute.
“Our long-term partnership with Air Canada continues to be a core component of our business, and we believe this ruling provides us with additional flexibility to continue to operate as an industry leader and deliver value for all our stakeholders,” Mr. Randell said.
http://business.financialpost.com/2013/ ... ir-canada/
Chorus Aviation shares jump after it wins long-running rate dispute with Air Canada
Scott Deveau | 26/11/13 8:40 AM ET
"We are pleased that the arbitration panel has ruled in favour of Jazz and that we can now move forward with certainty," said Joseph Randell, Chorus chief executive, said in a statement.
Shares in Chorus Aviation Inc. jumped by nearly 30% in early morning trading Tuesday after the company said it won its protracted battle with Air Canada over how much it is paid to perform regional flying on behalf of the country’s largest carrier.
The news is a welcomed relief for the parent company of Jazz Aviation.
The dispute has been tied up for years, weighed heavily on Chorus’ shares throughout, and even caused a precautionary move that cut its annual dividend in half last May.
Chorus’ shares fell nearly 40% in the aftermath of the dividend cut. They had pared some of those losses, but were still down nearly 25% prior to the announcement Tuesday.
“We are pleased that the arbitration panel has ruled in favour of Jazz and that we can now move forward with certainty,” said Joseph Randell, Chorus chief executive, said in a statement.
He added that Chorus was committed to maintaining its 30 cent per share annual dividend. But given its strong cash flow and liquidity position due to the favourable ruling the board would be exploring “all alternatives to further enhance shareholder value.”
At the heart of the dispute was how much Chorus is paid over and above its controllable cost through its long-standing partnership with Air Canada.
Air Canada argued the mark up rate should be in the range of 7% to 10% while Chorus maintained it should remain at 12.5%.
In a worse-case scenario if the arbitration panel sided with Air Canada, this could have triggered back payments of up to $157-million from Chorus dating back to 2010 when the dispute arose.
Chorus said Tuesday the arbitration panel reviewing matter found no justification for changing the rate from 12.5%, putting an end to the dispute.
“Our long-term partnership with Air Canada continues to be a core component of our business, and we believe this ruling provides us with additional flexibility to continue to operate as an industry leader and deliver value for all our stakeholders,” Mr. Randell said.
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Re: Chorus Aviation wins long-running rate dispute with AC
It remains to be seen if AC and Jazz can get past the acrimonious relationship they've had for the last few years. JR has suggested that there are proposals that will be put on the table to create a win-win situation for both sides. A little speculation is in order,perhaps some flexibility would be the correct word. I imagine that could include a fleet change in type and size,such as more DH4 and less of something else. It's in both parties interest to try and find solutions instead of pointing fingers and banging fists on a table. It's clear that AC will continue to purse the diversification of it's regional lift in the form of lower cost providers,that's just the reality of the situation at hand. Come 2020,Jazz will likely find itself priced out of the game unless a miracle were to occur. That's not to take anything away from the quality of the service that Jazz has provided AC,simply a mature company trying to compete against various players and upstarts with bottom of the scale wages.
Re: Chorus Aviation wins long-running rate dispute with AC
My best guess is larger planes but less of them. Again, we'll see what the future holds.
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Re: Chorus Aviation wins long-running rate dispute with AC
Agreed. Let's look at that miracle for a moment.Splash wrote:Come 2020,Jazz will likely find itself priced out of the game unless a miracle were to occur. That's not to take anything away from the quality of the service that Jazz has provided AC,simply a mature company trying to compete against various players and upstarts with bottom of the scale wages.
The CPA dissolves on dec 31st 2020, 7 years and a month from now.
In 7 years will Westjet pilots have unionized and/or improved working conditions for the Encore grunts? Or will Westjet be able to keep that group at king air wages forever? I'm thinking not.
Same question for Georgian and SkyRegional?
In 7 years what will the Jazz pilot group look like with retirements? Will there be captains with 5 year seniority at jazz? Currently there are 6-7 year guys getting lefts. How many guys at top pay level will be gone? What is the difference in pay from a 7 year skyrgional capt and a jazz 7 year capt? I suspect not much.
Also, air Canada is able to give 60 additional frames out to the regionals. Should jazz be afraid of loosing flying to SR/Georgian? should acpa?
Will air Canada turn it around for good or is Calin bumping up the share prices and preparing for an exit ala Milton? Is that airline truly sustainable? If they are so are we.
See Miracle.
Re: Chorus Aviation wins long-running rate dispute with AC
6-7 guys getting an upgrade? I thought Jazz didn't release last August Equipment bid because they had too many captains. So what's going on?Black Cat wrote:Agreed. Let's look at that miracle for a moment.Splash wrote:Come 2020,Jazz will likely find itself priced out of the game unless a miracle were to occur. That's not to take anything away from the quality of the service that Jazz has provided AC,simply a mature company trying to compete against various players and upstarts with bottom of the scale wages.
The CPA dissolves on dec 31st 2020, 7 years and a month from now.
In 7 years will Westjet pilots have unionized and/or improved working conditions for the Encore grunts? Or will Westjet be able to keep that group at king air wages forever? I'm thinking not.
Same question for Georgian and SkyRegional?
In 7 years what will the Jazz pilot group look like with retirements? Will there be captains with 5 year seniority at jazz? Currently there are 6-7 year guys getting lefts. How many guys at top pay level will be gone? What is the difference in pay from a 7 year skyrgional capt and a jazz 7 year capt? I suspect not much.
Also, air Canada is able to give 60 additional frames out to the regionals. Should jazz be afraid of loosing flying to SR/Georgian? should acpa?
Will air Canada turn it around for good or is Calin bumping up the share prices and preparing for an exit ala Milton? Is that airline truly sustainable? If they are so are we.
See Miracle.
Re: Chorus Aviation wins long-running rate dispute with AC
*6-7 year guys got upgrades in last award from January, which was the last equipment bid as the summer bid was not and things were left status quo.
30 or so senior captains took buy outs and opened up some slots, rumour is more to come!
30 or so senior captains took buy outs and opened up some slots, rumour is more to come!
Re: Chorus Aviation wins long-running rate dispute with AC
Teacher,
What makes you think that Chorus would buy larger airplanes and if so would you see narrow bodies being added t the fleet to replace the RJ 200 s ?
If that s the case, would you see rtb offered as there could be too many crews ?
What makes you think that Chorus would buy larger airplanes and if so would you see narrow bodies being added t the fleet to replace the RJ 200 s ?
If that s the case, would you see rtb offered as there could be too many crews ?
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Re: Chorus Aviation wins long-running rate dispute with AC
Seems to me Jazz won a battle in a war they are ultimately doomed to lose. Sad to say but based on what is happening in the US regionals, Canadian regional WAWCON's have plenty more room to drop......
Re: Chorus Aviation wins long-running rate dispute with AC
My guess, although an educated one, is still a guess. I'd say more Q400s or maybe Q500s if it's ever built and maybe more 705s replacing CRJ200s on a 2or3 to 1 basis. Same seats flown on less aircraft. The end result is lower seat mile costs for mainline. The end result for crews is less of them unless the sector lengths increase in which case credit hours go up meaning less reductions in flight crew. There are a lot of retirements coming so that may offset crew reductions but in the end I believe Jazz will have fewer aircraft meaning fewer pilots.volez wrote:Teacher,
What makes you think that Chorus would buy larger airplanes and if so would you see narrow bodies being added t the fleet to replace the RJ 200 s ?
If that s the case, would you see rtb offered as there could be too many crews ?
I also see the 37 seat flying going to companies like Georgian who will fly them for less although what airplanes they will fly is anyone's guess. The DH8-100s are due to start being turned into pop cans in a few years. There is a mod and refurb that can be done to extend their life beyond 80,000 cycles but word is it's expensive to do and requires additional maintenance. I don't know the details so don't quote me on it.
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Re: Chorus Aviation wins long-running rate dispute with AC
I think your guess is very close to what will occur. I suspect the Q400 options will be exercised and an equivalent amount of seats will be removed from the fleet. Bombardier has a new high density version of the Q400 that seats 86 passengers,not that I expect it would be considered. It only gives one an example of how both a CRJ200 and DH8-100 could be removed and replaced by one aircraft. Correct me if I'm wrong,I don't believe there is scope on turbo-prop aircraft.teacher wrote:My guess, although an educated one, is still a guess. I'd say more Q400s or maybe Q500s if it's ever built and maybe more 705s replacing CRJ200s on a 2or3 to 1 basis. Same seats flown on less aircraft. The end result is lower seat mile costs for mainline. The end result for crews is less of them unless the sector lengths increase in which case credit hours go up meaning less reductions in flight crew. There are a lot of retirements coming so that may offset crew reductions but in the end I believe Jazz will have fewer aircraft meaning fewer pilots.volez wrote:Teacher,
What makes you think that Chorus would buy larger airplanes and if so would you see narrow bodies being added t the fleet to replace the RJ 200 s ?
If that s the case, would you see rtb offered as there could be too many crews ?
I also see the 37 seat flying going to companies like Georgian who will fly them for less although what airplanes they will fly is anyone's guess. The DH8-100s are due to start being turned into pop cans in a few years. There is a mod and refurb that can be done to extend their life beyond 80,000 cycles but word is it's expensive to do and requires additional maintenance. I don't know the details so don't quote me on it.
The DH8-100 days are numbered at Jazz for reasons mentioned above. I too see that seating capacity going to Georgian,especially so now with their recent merger with Regional1(AVMAX)a CRJ and DH8 operator.
With future retirements it should at least keep everyone employed,it's still unknown what the upgrade potential will be in a few years.
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Re: Chorus Aviation wins long-running rate dispute with AC
Whatever the future holds, I think Air Canada should stop its current "bullying" approach to lowering their costs. Jazz is operationally extremely impressive (better than Air Canada on most measures, especially OTP) and Air Canada should not proverbially cut off its nose to spite its face. Their current "Regional Diversification Strategy" is nothing but a tool to lower WAWCONs and force Jazz's hand. There is no way that Jazz will have a lower CPA rate than Sky Regional, especially since Sky has everyone on Year 1 of the payscale and Jazz has a more mature workforce.
This is exactly what happened in the U.S... Regional airline A starts up, boasts a lower CPA rate than industry rivals, gets a bunch of airplanes to operate on behalf of Legacy Carrier A, work force matures and gets to those top level salaries, Regional airline A shuts down and reopens under the new name Regional airline B and everyone starts back from Year 1. All is well.
If Air Canada was smart, they would take a good hard look at what Delta has been doing recently.
This is exactly what happened in the U.S... Regional airline A starts up, boasts a lower CPA rate than industry rivals, gets a bunch of airplanes to operate on behalf of Legacy Carrier A, work force matures and gets to those top level salaries, Regional airline A shuts down and reopens under the new name Regional airline B and everyone starts back from Year 1. All is well.
If Air Canada was smart, they would take a good hard look at what Delta has been doing recently.
Re: Chorus Aviation wins long-running rate dispute with AC
I'm not sure Delta is any different to any of the other carriers. Just look at what they did to Comair. Perhaps there is something positive that I'm not aware of? They recently got involved in the restructuring of Pinnacle and to the best of my knowledge,everyone took a haircut.CanadianEh wrote:If Air Canada was smart, they would take a good hard look at what Delta has been doing recently.
Re: Chorus Aviation wins long-running rate dispute with AC
Unless I'm misunderstanding something, up to 1159pm on December 31, 2020 jazz will still be operating A large fleet of aircraft and a minimum of 335,000 block hours based on our current agreement.
Let's say that Air Canada has decided to drop jazz altogether as some here suggest. Air Canada cannot stop jazz from operating all of those airplanes up until midnight that date! In order for a new CPA carrier to take over all jazz flying they are going to need 1000-1500 trained and experienced pilots WILLING to work for BUNK and X amount of airplanes that jazz operated the day before standing at the ready. How long will it take to train up those pilots? Will all those planes just be sitting around an apron somewhere? Doubt it.
Any growth of regional one or sky regional will come at the expense of Air Canada mainline fleet hours and acpa pilots before that date. (Thank you Mr Templezki and thank you ALPA.) Will that happen? ACPA are you out there?
There is a reason that Air Canada is trying to be a bully right now to Jazz. Their hands are tied and their future growth plans are on hold as far as the regionals are concerned, other than 35,000 hours-ish that they have put out for bid and excluded jazz from bidding on.
I believe that jazz is holding most of the cards right now in terms its future past 2020. If our management, and that's a big if, can go to Air Canada and hash something out jazz might make out okay in this. Something along the lines of "look guys we need to tell our investors that we will be around well past 2020 and you need to take advantage of your contract with acpa and farm out an additional 60 planes, diversify, and get a better rate from us. Let's talk.
Just my thoughts.
PS if your only argument to Jazz going out of business in 2020 is "look at the US" I have news for you, this isn't the US and there are far more complexities to the relationship between jazz and AC.
Let's say that Air Canada has decided to drop jazz altogether as some here suggest. Air Canada cannot stop jazz from operating all of those airplanes up until midnight that date! In order for a new CPA carrier to take over all jazz flying they are going to need 1000-1500 trained and experienced pilots WILLING to work for BUNK and X amount of airplanes that jazz operated the day before standing at the ready. How long will it take to train up those pilots? Will all those planes just be sitting around an apron somewhere? Doubt it.
Any growth of regional one or sky regional will come at the expense of Air Canada mainline fleet hours and acpa pilots before that date. (Thank you Mr Templezki and thank you ALPA.) Will that happen? ACPA are you out there?
There is a reason that Air Canada is trying to be a bully right now to Jazz. Their hands are tied and their future growth plans are on hold as far as the regionals are concerned, other than 35,000 hours-ish that they have put out for bid and excluded jazz from bidding on.
I believe that jazz is holding most of the cards right now in terms its future past 2020. If our management, and that's a big if, can go to Air Canada and hash something out jazz might make out okay in this. Something along the lines of "look guys we need to tell our investors that we will be around well past 2020 and you need to take advantage of your contract with acpa and farm out an additional 60 planes, diversify, and get a better rate from us. Let's talk.
Just my thoughts.
PS if your only argument to Jazz going out of business in 2020 is "look at the US" I have news for you, this isn't the US and there are far more complexities to the relationship between jazz and AC.
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Re: Chorus Aviation wins long-running rate dispute with AC
Air Canada is defintely following the US mainline approach of whipsawing the regional for ever lower CPA's. The only difference is as you correctly point out they can't touch the Jazz CPA until 2020. It is hard to envision anything but a massive reductions in T & C's employees if Jazz is going to keep the flying past 2020.Black Cat wrote:
PS if your only argument to Jazz going out of business in 2020 is "look at the US" I have news for you, this isn't the US and there are far more complexities to the relationship between jazz and AC.
The good news is at least the Jazz guys/gals have 7 decent years left. The even better news is that the only reason that this situation exists was due to the short term greed of Air Canada, they inflated the existing CPA so that they could make Chorus look better when they spun it off therefore enhancing the stock value (and the executive bonus's as well

Unfortunately this only delays the inevitable race for the bottom ......
Re: Chorus Aviation wins long-running rate dispute with AC
Agreed. Jazz will partake in the race to the bottom, but the floor will have risen a bit in 7 years we hope. 2015 rate reset will be a hit but with 12 over cost, there is room to negotiate.
If we are looking at the US, isn't there a trend of main lines brining the regional flying back in house? Transat is the first here in Canada. Why not turf Joe and the lot and save a few million? That's a lasting cost reduction
If we are looking at the US, isn't there a trend of main lines brining the regional flying back in house? Transat is the first here in Canada. Why not turf Joe and the lot and save a few million? That's a lasting cost reduction

Re: Chorus Aviation wins long-running rate dispute with AC
This is something many don't realize. If there is anyone for AC to be pointing fingers at,it is Robert Milton and ACE. It seems AC today salivates at the prospect of replicating how things are done in the states but finds itself stuck with a CPA that it doesn't like. At the time it may have been a good idea to monetize the various units during the restructuring back in 2003 to appease the creditors,today not so much.Big Pistons Forever wrote:
The even better news is that the only reason that this situation exists was due to the short term greed of Air Canada, they inflated the existing CPA so that they could make Chorus look better when they spun it off therefore enhancing the stock value.
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Re: Chorus Aviation wins long-running rate dispute with AC
You guys should listen to the last Air Canada and Jazz conference calls. Air Canada is really satisfied with the Jazz product. Jazz needs Air Canada for their business but Air Canada alos needs Jazz. I'm not 100% sure but I still have a little bit of faith in Jazz and future. I'm thinking also that there will be a fleet renewal program announced soon. Air Canada as well will announce something too.
Air Canada November 8th conference call: http://bell.media-server.com/m/p/ksqa4cmx at 37:30 Calin talks about Jazz.
Jazz November 14th conference call: http://www.newswire.ca/en/webcast/detai ... 49/1362077
cheers
Air Canada November 8th conference call: http://bell.media-server.com/m/p/ksqa4cmx at 37:30 Calin talks about Jazz.
Jazz November 14th conference call: http://www.newswire.ca/en/webcast/detai ... 49/1362077
cheers
Re: Chorus Aviation wins long-running rate dispute with AC
Black Cat,Black Cat wrote:Unless I'm misunderstanding something, up to 1159pm on December 31, 2020 jazz will still be operating A large fleet of aircraft and a minimum of 335,000 block hours based on our current agreement.
Let's say that Air Canada has decided to drop jazz altogether as some here suggest. Air Canada cannot stop jazz from operating all of those airplanes up until midnight that date! In order for a new CPA carrier to take over all jazz flying they are going to need 1000-1500 trained and experienced pilots WILLING to work for BUNK and X amount of airplanes that jazz operated the day before standing at the ready. How long will it take to train up those pilots? Will all those planes just be sitting around an apron somewhere? Doubt it.
.
AC has options to reduce Jazz's CPA on a piecemeal basis.
1) The unilateral MADUG reduction in 2016 if AC's market share drops by a fixed amount.
2) Buy out the contract in pieces. For example pay Chorus its 12% markup on flying they transfer elsewhere.
What's cheaper? The Jazz CPA or a SR CPA + 12%? The Jazz CPA or a R1 CPA + 12%? The Jazz CPA or an American regional + 12%?
Is AC about to breach the Jazz CPA when they transfer the transborder flying to who ever is awarded the flying?
Re: Chorus Aviation wins long-running rate dispute with AC
Nobody who post on this board has actually seen the CPA. No ALPA pilot has seen the entire CPA, No ACPA pilot has seen the entire CPA, they have only been privy to the parts which directly affect their part of the operation. Abit of a conflict of interest on the companies part by allowing the pilots to view the entire document so it is closely guarded. I hope Joe has more smarts than some of the posters on this forum. He believes Jazz has a solid CPA until the end of 2020, including guaranteed number of airplanes and blocking hours. Any drop below those benchmarks and Air Canada actually pays penalties to Jazz, so in fact the CPA becomes even more expensive.
Chorus cut their dividend payment in half 8 months ago in order to prepare for an arbitration loss with back payments due to Air Canada. They were able to stockpile about 160mil. They won the arbitration so they do not have to pay any back payments to Air Canada. Everyday that goes by without any change to the CPA that pot continues to grow. What would you do with that much money. The most obvious answer is buy out your competition. No need to change any rates or worry about Jan 1 2021 if there is no one around to bid against you for that flying. Why do you think Rovinescu has been playing nice with Jazz the last couple weeks?
That doesn't seem to be the message from Randell though. He talks about a win - win situation. What does that involve? Well this should be the easiest negotiations ever. It has all been laid out for Joe on a silver platter. From the arbitration he knows exactly what Air Canada wants. He can give it to them but what does Jazz get in return? Less airplanes - I don't see how that is a win - win - and I don't see why he would agree to that knowing that he claims to have a steady income till the end of the CPA and everything that that would allow him to do.
Personally, if Joe can't turn this into fleet renewal, fleet refurbishing, and more airplanes with a long CPA extension I don't see it being a win - win and don't think Joe deserves to be managing a Tim Horton's let alone one of Canada's largest airlines.
Chorus cut their dividend payment in half 8 months ago in order to prepare for an arbitration loss with back payments due to Air Canada. They were able to stockpile about 160mil. They won the arbitration so they do not have to pay any back payments to Air Canada. Everyday that goes by without any change to the CPA that pot continues to grow. What would you do with that much money. The most obvious answer is buy out your competition. No need to change any rates or worry about Jan 1 2021 if there is no one around to bid against you for that flying. Why do you think Rovinescu has been playing nice with Jazz the last couple weeks?
That doesn't seem to be the message from Randell though. He talks about a win - win situation. What does that involve? Well this should be the easiest negotiations ever. It has all been laid out for Joe on a silver platter. From the arbitration he knows exactly what Air Canada wants. He can give it to them but what does Jazz get in return? Less airplanes - I don't see how that is a win - win - and I don't see why he would agree to that knowing that he claims to have a steady income till the end of the CPA and everything that that would allow him to do.
Personally, if Joe can't turn this into fleet renewal, fleet refurbishing, and more airplanes with a long CPA extension I don't see it being a win - win and don't think Joe deserves to be managing a Tim Horton's let alone one of Canada's largest airlines.
Re: Chorus Aviation wins long-running rate dispute with AC
As for the RFP, what exactly is an RFP? It is a Request For Proposal. Say that slowly. It isn't a contract. Basically it is asking a bunch of airlines how much it would cost them to do certain flying. Not a Sky Regional which isn't actually an airline, but companies with similar structures to Jazz how much it would cost them: crewing, dispatching, training etc, etc to fly different routes. Basically it is a way to do a cost analysis and comparison. Kind of like what Westjet did when they looked at purchasing Canadian North and Porter. We are interested but we need to look at your books. Oh, guess we are not interested but we are now going to be flying into some new northern destinations and upping our frequency on others, or we are not interested but we are now starting our own Q400 operation. Air Canada is doing the same thing, they wanted to do a cost comparison on routes that Jazz already operates. Just putting another tool in there negotiation kit.
Re: Chorus Aviation wins long-running rate dispute with AC
You must be new because you don't seem to have any awareness of the modus operandi of the current players.rhythm101 wrote:As for the RFP, what exactly is an RFP? It is a Request For Proposal. Say that slowly. It isn't a contract. Basically it is asking a bunch of airlines how much it would cost them to do certain flying. Not a Sky Regional which isn't actually an airline, but companies with similar structures to Jazz how much it would cost them: crewing, dispatching, training etc, etc to fly different routes. Basically it is a way to do a cost analysis and comparison. Kind of like what Westjet did when they looked at purchasing Canadian North and Porter. We are interested but we need to look at your books. Oh, guess we are not interested but we are now going to be flying into some new northern destinations and upping our frequency on others, or we are not interested but we are now starting our own Q400 operation. Air Canada is doing the same thing, they wanted to do a cost comparison on routes that Jazz already operates. Just putting another tool in there negotiation kit.
History has shown that when AC puts out an RFP it has already selected the successful bidder. It will be no different in this case.
And as for the CPA, one only has to go to SEDAR to see what the substantial terms of the commercial agreement are. The only missing items are the block hour cost schedules which for obvious reasons would be confidential.
Re: Chorus Aviation wins long-running rate dispute with AC
From AC's Q3 MD&A
Air Canada also recently announced that it will undertake a request for proposal (“RFP”) process to select a new regional airline to operate certain existing U.S. regional transborder routes, starting in mid-2014. The launch of this RFP process is an important next step in the airline’s regional airline diversification strategy and ongoing cost transformation program. Over the past two years, Air Canada has made significant changes to its strategy and relationship with its regional partners, now all operating under the Air Canada Express banner.
Air Canada also recently announced that it will undertake a request for proposal (“RFP”) process to select a new regional airline to operate certain existing U.S. regional transborder routes, starting in mid-2014. The launch of this RFP process is an important next step in the airline’s regional airline diversification strategy and ongoing cost transformation program. Over the past two years, Air Canada has made significant changes to its strategy and relationship with its regional partners, now all operating under the Air Canada Express banner.
Re: Chorus Aviation wins long-running rate dispute with AC
Because he is a smiling assassin?rhythm101 wrote:Why do you think Rovinescu has been playing nice with Jazz the last couple weeks?
http://www.theglobeandmail.com/report-o ... 40/?page=3
But Rovinescu doesn’t want to go soft, fearing Air Canada will lose its resolve as things improve. “It is easy to fall back into bad habits,” he says, to justify the latest $50 million in cuts. Among other measures, Air Canada is putting the squeeze on its suppliers, requesting new contracts at lower prices. “We want you to share our pain,” Rovinescu says with a shark’s smile.
Re: Chorus Aviation wins long-running rate dispute with AC
In the US Delta has merged most if its small feeders and put flow through on the table for the pilots. The companies they figure "couldn't cut the mustard" went the way of the DoDo. Please don't put Jazz in the same category as Comair .. Comair was a major puppy mill.
Jazz is a mature company with a very experienced pilot group, I have a hard time believing AC would risk losing them to the open market were there currently is a "pilot shortage", its more a shortage of experience. I believe most would take a job at Encore out of spite and to have the chance to help crush "big red". Silly, yes but anger isn't rational.
Reality, both companies need one another and need something from one another. We need to hope calm, cool heads can get to the table and figure it all out. I think there is a long term solution that will benefit everyone.
Maybe, we as a pilot group could come to a solution as well .. CPPC?
Jazz is a mature company with a very experienced pilot group, I have a hard time believing AC would risk losing them to the open market were there currently is a "pilot shortage", its more a shortage of experience. I believe most would take a job at Encore out of spite and to have the chance to help crush "big red". Silly, yes but anger isn't rational.
Reality, both companies need one another and need something from one another. We need to hope calm, cool heads can get to the table and figure it all out. I think there is a long term solution that will benefit everyone.
Maybe, we as a pilot group could come to a solution as well .. CPPC?
Re: Chorus Aviation wins long-running rate dispute with AC
Comair a puppy mill? On what basis?
They were a well run company with legacy cost creap. Even CH11 can't fix the cost creap of tenured employees. As a result Delta wound them down. American Eagle has the same issue heading thier way as the regional replacement order went elsewhere. What happens to Eagle once these aircraft begin to show up?
They were a well run company with legacy cost creap. Even CH11 can't fix the cost creap of tenured employees. As a result Delta wound them down. American Eagle has the same issue heading thier way as the regional replacement order went elsewhere. What happens to Eagle once these aircraft begin to show up?