I'm sure it's probably better just curious.
First MidEx E190
- Thread starter rd757
- Start date
kellwolf
Piece of Trash
FYI, a 3 year FO is making what a 4 year CA at Pinnacle makes. Just to toss that into perspective.
SeanD
Well-Known Member
SmoothLanderJ
Well-Known Member
I agree.....
Trip7
Well-Known Member
Hold your Air Canada pay high horses. Air Canada is struggling mightily against its lower cost competition.
http://online.wsj.com/article/SB124769655572047855.html
Labor Deal Offers Air Canada Relief
Cash-strapped Air Canada got a break in its quest to avoid a bankruptcy filing when a holdout union approved a new labor contract that contains no raises or pension payments for 21 months.
Canada's dominant airline, a unit of ACE Aviation Holdings Inc., now has agreements with all five of its Canadian unions that will hold the line on wage and pension benefits, conditions that will save Air Canada precious cash as it maneuvers through a global recession, a plunge in air-travel demand and escalating competition from its low-cost rival WestJet Airlines Ltd.
But the labor accords are contingent on a federal order granting Air Canada temporary relief from making payments to its underfunded pension plans, and on the carrier's ability to raise at least 600 million Canadian dollars ($528.2 million) in new financing. Failure on either front could force the Montreal-based airline back into bankruptcy proceedings for the second time since 2003.
"These are extremely challenging times for both the airline industry and credit markets," said Air Canada Chief Executive Calin Rovinescu.
If the carrier achieves the pension waiver and raises fresh cash, Mr. Rovinescu said the next step to returning Air Canada to profitability will include a "significant cost-reduction program requiring participation by certain suppliers and stakeholders."
The carrier last year posted a loss of C$1.03 billion, and produced a deficit of C$400 million in the first quarter of 2009. Facing a liquidity squeeze and some hefty pension payments, the company ousted its CEO in May and installed Mr. Rovinescu, an investment banker and lawyer who was Air Canada's chief restructuring officer in its 2003 reorganization.
He has moved briskly to stave off insolvency. In May, the company won limited covenant relief from a big credit-card processor, evading a requirement that would have required Air Canada to carry a C$900 million -- and potentially up to C$1.3 billion -- monthly cash balance. In June, Air Canada arranged a C$100 million secured loan from Groupe Aeroplan Inc., its former frequent flier program that ACE spun off after the bankruptcy.
Mr. Rovinescu is working hard in Ottawa to obtain regulatory relief on the pension front, as Air Canada faces a C$2.9 billion pension deficit and will have to make catch-up contributions late this month and in August without the waiver.
One bargaining unit of the International Association of Machinists union, which represents mechanics, narrowly voted against a tentative agreement earlier this month. But in a second vote on the same terms Tuesday, a majority approved the deal. Unions for pilots, flight attendants, customer-service agents and dispatchers already have ratified new contracts. In return, 15% of the airline's equity will be issued to a trust for the workers, with proceeds of stock sales to be contributed to the pension plan deficit. And while the unions' ownership exceeds 2%, they will have a seat on the board.
Liquidity remains an issue and Air Canada is on the hunt for new financing, although a spokesman declined to comment on where it is looking and for how much. The company has said in the past that it could arrange sale-leasebacks on its unencumbered Boeing 777 widebody jets.
A spokesman for the Export Development Corp. said the airline has approached the Canadian federal export financing agency for a commercial loan of about C$200 million. Analysts expect the airline's parent, ACE, to pony up some funds, along with Canadian Imperial Bank of Commerce, and General Electric Co.'s GE Capital Aviation Services, which leases or finances about 100 of Air Canada's jetliners.
CIBC and Gecas declined to comment. Both participated last year when Air Canada raised about C$650 million.
http://online.wsj.com/article/SB124769655572047855.html
Labor Deal Offers Air Canada Relief
Cash-strapped Air Canada got a break in its quest to avoid a bankruptcy filing when a holdout union approved a new labor contract that contains no raises or pension payments for 21 months.
Canada's dominant airline, a unit of ACE Aviation Holdings Inc., now has agreements with all five of its Canadian unions that will hold the line on wage and pension benefits, conditions that will save Air Canada precious cash as it maneuvers through a global recession, a plunge in air-travel demand and escalating competition from its low-cost rival WestJet Airlines Ltd.
But the labor accords are contingent on a federal order granting Air Canada temporary relief from making payments to its underfunded pension plans, and on the carrier's ability to raise at least 600 million Canadian dollars ($528.2 million) in new financing. Failure on either front could force the Montreal-based airline back into bankruptcy proceedings for the second time since 2003.
"These are extremely challenging times for both the airline industry and credit markets," said Air Canada Chief Executive Calin Rovinescu.
If the carrier achieves the pension waiver and raises fresh cash, Mr. Rovinescu said the next step to returning Air Canada to profitability will include a "significant cost-reduction program requiring participation by certain suppliers and stakeholders."
The carrier last year posted a loss of C$1.03 billion, and produced a deficit of C$400 million in the first quarter of 2009. Facing a liquidity squeeze and some hefty pension payments, the company ousted its CEO in May and installed Mr. Rovinescu, an investment banker and lawyer who was Air Canada's chief restructuring officer in its 2003 reorganization.
He has moved briskly to stave off insolvency. In May, the company won limited covenant relief from a big credit-card processor, evading a requirement that would have required Air Canada to carry a C$900 million -- and potentially up to C$1.3 billion -- monthly cash balance. In June, Air Canada arranged a C$100 million secured loan from Groupe Aeroplan Inc., its former frequent flier program that ACE spun off after the bankruptcy.
Mr. Rovinescu is working hard in Ottawa to obtain regulatory relief on the pension front, as Air Canada faces a C$2.9 billion pension deficit and will have to make catch-up contributions late this month and in August without the waiver.
One bargaining unit of the International Association of Machinists union, which represents mechanics, narrowly voted against a tentative agreement earlier this month. But in a second vote on the same terms Tuesday, a majority approved the deal. Unions for pilots, flight attendants, customer-service agents and dispatchers already have ratified new contracts. In return, 15% of the airline's equity will be issued to a trust for the workers, with proceeds of stock sales to be contributed to the pension plan deficit. And while the unions' ownership exceeds 2%, they will have a seat on the board.
Liquidity remains an issue and Air Canada is on the hunt for new financing, although a spokesman declined to comment on where it is looking and for how much. The company has said in the past that it could arrange sale-leasebacks on its unencumbered Boeing 777 widebody jets.
A spokesman for the Export Development Corp. said the airline has approached the Canadian federal export financing agency for a commercial loan of about C$200 million. Analysts expect the airline's parent, ACE, to pony up some funds, along with Canadian Imperial Bank of Commerce, and General Electric Co.'s GE Capital Aviation Services, which leases or finances about 100 of Air Canada's jetliners.
CIBC and Gecas declined to comment. Both participated last year when Air Canada raised about C$650 million.
kellwolf
Piece of Trash
Marcus, are you saying that they should just drop their pay rates so they can compete? If that's you're reasoning, I hope you REALLY like working at ASA....or an airline that resembles them. Once we start down that road, even Delta won't be much better than their DCI partners. Personally, I'd like to move UP in the world.
Trip7
Well-Known Member
I'm just saying anything. Just added in that article since the the subject of high Air Canada pay was being discussed.
ChasenSFO
hen teaser
I saw one in LAS a while back, I assumed it was going to YVR, YYC, or YEG. But YYZ? Thats a pretty long flight in a 170...but at least you won't get stuck in a middle seat, and its a mainline route.
ASpilot2be
Qbicle seat warmer
I bet it was a 190. I read the 170 has a 2000nm range, and YYZ-LAS is 1950.