daily menu » rate the banner | guess the city | one on oneforums map | privacy policy | DMCA | news magazine | posting guidelines

Go Back   SkyscraperCity > Infrastructure and Mobility Forums > Airports and Aviation

Airports and Aviation » Airports | Photos and Videos



Global Announcement

As a general reminder, please respect others and respect copyrights. Go here to familiarize yourself with our posting policy.


Reply

 
Thread Tools
Old May 14th, 2005, 10:30 PM   #121
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

Air Transport - Former Air Canada President & CEO Pierre Jeanniot argues in favour of open skies for Canada
12 May 2005
Canada NewsWire

MONTREAL, May 12 /CNW Telbec/ - Former Air Canada President & CEO and Director General Emeritus of the International Air Transport Association (IATA), Pierre Jeanniot would like to see Canada moving towards the active opening up of its air transport market and pushing ahead with the liberalization process that began in the early 1980s.

In an Economic Note published today by the Montreal Economic Institute (MEI), Mr. Jeanniot draws attention to the successful integration of the airline market within the European Union and urges the Canadian government, provided that reciprocal rights can be obtained, to remove its restrictions on "cabotage" - flights between Canadian cities on foreign airlines - and on foreign ownership of Canadian-based airlines.

Illustrative of some of the advantages enjoyed by European consumers since the liberalization of the European market are the sharp increases in the number of routes, in flight frequencies, and in available seats. Increased competition has also exerted downward pressure on fares, particularly in economy class where fares fell by 29% between 1992 and 2000.

The next stage: two scenarios

The document presents two alternative paths presently open to Canada, which would build on the success of the Open Skies Agreement signed by Canada and the United States in 1995.

"The next stage (could) be to seek total integration of aviation markets in North America as part of the North American Free Trade Agreement (NAFTA) or, alternatively, the opening of negotiations with the European Union to develop an agreement similar to what Europe has attempted - so far unsuccessfully - to obtain with the United States."

But whatever the scenario adopted, concludes Mr. Jeanniot, Canada "should take every opportunity that comes up to negotiate an Open Skies type agreement with any country that already has a comparable agreement with the USA. It should also, at the appropriate time, offer similar reciprocal agreements to other liberalized parts of the world."

Under the title: Towards open skies for airlines in Canada, this MEI document has been communicated to the Federal Minister of Transport and all Members of Parliament. It is available at www.iedm.org .

Pierre Jeanniot was President and CEO of Air Canada from 1984 to 1990 and President and CEO of the International Air Transport Association from 1993 to 2002. He is available for media interviews.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote

Sponsored Links
Old May 17th, 2005, 06:52 PM   #122
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

ACE Aviation's Maintenance Unit Seeking Global Expansion
By Monica Gutschi
17 May 2005

TORONTO (Dow Jones)--Air Canada Technical Services, or ACTS, may be the least sexy of ACE Aviation Holding's (ACE.B.T) nine business units - but that could rapidly change.

The maintenance branch of Canada's largest airline operator has set its sights on becoming a "Tier One" MRO - maintenance, repair and overhaul operator - within the next five years. To do that, it needs to expand globally and it needs to grow significantly from its current C$700 million in annual revenue.

"Our goals are very aggressive and they will not all come from organic growth," says ACTS president Bill Zoeller. He said ACTS want to be a "major player" in the global MRO marketplace, capturing about 10-15% of what is expected to soon be a US$49 billion market.

That means ACTS will need to establish a presence in both the U.S. and in some of the "lower-cost labor" areas of the world, he said. And that, in turn, means acquisitions, joint ventures or partnerships will be in the cards.

Some could be announced shortly.

Rumors suggest one could be related to a potential merger between US Airways Group (USAIRQ) and America West Holdings (AWA), where ACE Aviation has been touted as an equity partner in order to gain maintenance outsourcing work.

At the same time, Zoeller hints that a large contract is on the verge of being signed with a significant customer, and says ACTS is also working on a number of initiatives globally, and has launched a major marketing campaign. The company is "going after" legacy carriers, start-up carriers, military operators, and "doing some alliances with other companies to spread our expertise around the world."

It most recently captured public attention when it announced a US$300 million maintenance contract with Delta Air Lines Inc. (DAL), which will add some 300 jobs over the next five years.

"We're sort of an unknown part" of ACE Aviation, the holding company created last September when Air Canada emerged from bankruptcy protection. While admitting that fixing planes is "not as sexy" as flying them, Zoeller says the business "can be very profitable and very dynamic."

In fact, ACTS reported revenue of C$180 million in the most recent quarter, while its operating expenses were only C$157 million, making it one of the more profitable of ACE Aviation's four reporting subisidaries. Ted Larkin, analyst with Orion Securities, noted the unit has profit margins "that its competitors must covet."

According to financial documents, ACTS reported pretax margins of 13% in the first quarter, compared to the -4% margins reported by ACE Aviation's air-transport operations.



Bankruptcy Proceeding Drove Out Costs


ACTS was able to drive about 30% to 40% of its costs out during the bankruptcy restructuring process, Zoeller says. The number of employees was slashed by 2,500, to 3,600, while changes in work rules boosted productivity by 50%-60%. Finally, renewed contracts with suppliers cut materials costs by about 35%.

"It really drove us into a very competitive position," Zoeller says. So much so, that BWIA West Indies Airways finds it cost-effective to do its maintenance in Montreal, and for discounter Jetblue Airways Corp. (JBLU) to send its planes to ACTS' Winnipeg site.

The company now has about 100 customers, including Canadian tour operator Transat A.T. (TRZ.B.T), United Parcel Service Inc. (UPS), Canada's Department of National Defence, the Bank of Scotland, FLYi Inc.'s (FLYI) Independence Air, Brazil's Gol Linhas Aereas Inteligentes S.A. (GOL) and Deutsche Lufthansa's (LHA.XE) regional City Line. The unit works on everything from widebody Boeing 767s to narrowbody Airbus 320s to small CRJ200 regional jets.

Its sister companies under the ACE Aviation umbrella, mainliner Air Canada and regional operator Jazz, now represent about 62% of ACTS' total revenue base, but Zoeller hopes to lower that to the 30%-40% range by adding new airlines to the roster.

While ACTS doesn't have guaranteed work with Air Canada, and must participate in an open biddiing process for many contracts, it does have the "right of first refusal" in that if it meets the best price, it's given the job. The relationship will become even more arm's length as it matures, Zoeller says.

ACTS provides four basic kinds of services: heavy maintenance, engine overhaul, component repairs and "other," including line maintenance, quality-control audits, and fleet-management services. Through subcontractors and alliances, Zoeller says it can offer "nose-to-tail" maintenance for all of the aircraft types it services.

Nevertheless, that still doesn't make ACTS a "Tier One" MRO, which Zoeller defines as an operator "that can offer anything to anybody, anyplace" in the world. Lufthansa Technik is one, he says, while Singapore Technologies Aerospace, the world's largest third-party commercial airframe MRO, is just shy of being there. ACTS will "shortly" move into the Tier One ranks, he says.

Overhaul and Maintenance magazine rates ACTS as one of the top 10 MROs in the Americas, with about 2.5 million man-hours in 2004.

Analysts have valued the unit at about C$450-$500 million, or about C$4 a share on a stand-alone basis.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old May 19th, 2005, 08:53 AM   #123
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

Air Canada parent ACE readies Aeroplan IPO-report

TORONTO, May 18 (Reuters) - Air Canada parent ACE Aviation Holdings could spin off its Aeroplan rewards program into an income trust and sell a minority stake in the initial public offering worth more than C$300 million as early as this week, a Canadian national newspaper said on Wednesday.

The Globe and Mail, citing sources familiar with the plan, said ACE is reviewing the terms of the IPO that would see a syndicate of investment dealers led by RBC Securities sell a minority stake of less than 20 percent of Aeroplan.

The plan gives the popular consumer rewards program a value of at least C$1.5 billion.

An Air Canada spokeswoman told the Globe and Mail that although ACE intends to sell a stake in Aeroplan, she could not provide any details on the structure or timing of the deal.

The company has been weighing a number of options including a plan for a U.S. equity issue, but the idea of an income trust is most favored because of strong demand for trust IPOs.

The Aeroplan IPO would be the first spinoff for the company that emerged from bankruptcy protection at the end of September. It is also considering plans for its aircraft maintenance and regional Jazz airline divisions.

In the first three months of this year, Aeroplan posted a C$21 million operating profit on revenue of C$172 million.

($1=$1.26 Canadian)
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old May 19th, 2005, 12:12 PM   #124
samsonyuen
SSLL
 
samsonyuen's Avatar
 
Join Date: Sep 2003
Location: Canary Wharf > CityPlace
Posts: 8,350
Likes (Received): 314

May 18, 2005. 06:35 PM
Ottawa approves more Air Canada flights to China

OTTAWA (CP) — The federal government has cleared the way for Air Canada to expand its number of flights to China.
Transport Minister Jean Lapierre announced today that Air Canada and Vancouver-based Harmony Airways have been granted the designation to operate scheduled services between Canada and China.
The announcement came a month after the two countries signed a bilateral agreement to expand air links, in a deal which included safety and security provisions.
"With the expanded rights that were obtained by Canada through the new air agreement with China, carriers will have additional flexibility in their operations and can provide more choices to Canadians travelling to and from China," Lapierre said in a statement.
Air Canada (TSX: ACE.B) is the only Canadian airline currently operating flights to China. For 2005, Lapierre has allocated five additional flights per week to Air Canada to accommodate a new passenger service between Toronto and Beijing beginning next month, and three flights per week for new cargo service between Toronto and Shanghai that began Sunday.
Harmony Airways intends to introduce passenger services to China by operating code-sharing services, whereby an airline sells seats in its name on the flights of another airline.
CargoJet and Air Transat have also expressed an interest in operating services to China.
samsonyuen no está en línea   Reply With Quote
Old May 24th, 2005, 08:26 AM   #125
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

Aeroplan partial spinoff first step to free value?
Analysts cautious about ACE role in planned merger
21 May 2005
National Post

Air Canada's parent company moved closer toward realizing the full value of its various subsidiaries this week with the partial spinoff of Aeroplan and a pledge to plunge into the debt-laden U.S. airline industry, a decision that has left some analysts on the edge of their seats.

Although industry watchers welcomed the much-anticipated creation of the Aeroplan Income Fund, which will hold a 15% stake in the popular loyalty program, they were more cautious in their response to ACE Aviation Holdings Inc.'s promise to invest US$75-million in the proposed merger between US Airways and America West Airlines.

The deal, which takes effect only if US Airways emerges from Chapter 11, would give ACE Aviation a 7% in the newly merged airline. It would also come with commitments to deliver $1.5-billion worth of aircraft maintenance contracts to Air Canada Technical Services (ACTS) over five years, creating 700 jobs.

The additional work promises to thrust ACTS into the top tier of global aircraft maintenance providers, thereby increasing the likelihood it too will be spun off, in whole or in part, to investors. Of course, that's assuming the newly merged airline is around long enough to require servicing for its combined fleet of 361 jets.

"On the one hand, the deal clearly presents the company with a lucrative opportunity to enhance its revenues and profits from outside sources," said Ben Cherniavsky, an analyst at Raymond James, in a research note. "On the other hand, this upside rests on the fundamental assumption that the newly combined carrier will survive the next few years -- a risky assumption in our view."

US Airways is now mired in its second attempt at a Chapter 11 restructuring, having shaved its annual labour costs by a further US$1-billion. Still, the carrier remains one of the highest-cost operations in a U.S. airline industry increasingly populated by low-cost carriers. Meanwhile, America West has flirted with Chapter 11, but has posted profits recently.

In addition to the maintenance contracts, Air Canada said it could benefit from increased penetration to several U.S. markets, as well as more traffic destined to its international hub airports in Toronto and Vancouver. Neither US Airways nor America West has much of an international presence, which suggests Air Canada, with its overseas routes, could eventually benefit from an expanded code-sharing relationship with the newly-merged carrier.

Marc-David Seidel, a professor at the University of British Columbia's Sauder School of Business, said Air Canada's move to increase its presence in the United States is a necessary gamble if it is serious about returning to profitability.

"It's a risky investment, but it could be very positive for their international traffic, particularly by building their hub to Asia in Vancouver."

Similarly, one analyst, who didn't want his name used, suggested extra revenue from maintenance contracts and other synergies far outweighs the risks of US$75-million investment in the newly merged airline. "Even if you assume that the 7% stake is essentially worthless, you will still get your money back in the first two-and-a-half years," the analyst said.

However, there are still a number of hurdles to be cleared before any of this will come to pass. The two U.S. airlines must have their business plan approved by a U.S. bankruptcy court, sell the idea to labour unions and, possibly, fend off competitive bids for US Airways' assets.

Aeroplan's future, by contrast, is something observers are much more confident about.

ACE Aviation ended months of speculation yesterday by announcing the creation of the Aeroplan Income Fund, which will hold a 15% stake Aeroplan.

Shares climbed about 10% during the past few days on the news of the imminent aeroplan spinoff.

"The Aeroplan public offering represents a giant step forward in the implementation of ACE's strategy of unlocking shareholder value through the monetization of its business units," Robert Milton, chief executive of ACE Aviation, said in a statement.

According to some analyst estimates, the deal could raise as much as $250-million.

ACE AVIATION HOLDINGS INC.
Ticker: ACE/RV
Closing Price: $38.30, UP 34 cents
Market Cap: $3.8B
Annual Revenue: $8.9B (includes predecessor)
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old May 24th, 2005, 06:06 PM   #126
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

15% of Aeroplan converted to income trust
Air Canada parent firm's move 'unlocks shareholder value' Miles, redemption levels won't be affected, the company says
Rick Westhead
Toronto Star
21 May 2005

Air Canada's parent company took a big step forward in its strategy of "unlocking shareholder value through the monetization of its business units," announcing a plan yesterday to sell 15 per cent of its Aeroplan frequent flyer program through an income trust.

Analysts said the move by ACE Aviation Holdings Inc., rumoured for months, could raise as much as $225 million.

ACE, whose shares have spiked by more than 60 per cent since they began trading Oct. 4, is expected in coming months to consider divesting other non-core assets, including its maintenance unit and Jazz regional airline, as it places a priority on expanding into higher-margin international routes in Asia and Latin America.

Aeroplan's miles and redemption levels won't be affected, the company said.

The frequent flyer program, which generates revenue by selling points to companies that then issue them to consumers for making purchases, is among the best success stories in the airline loyalty program industry.

Unlike some of the other loyalty plans, which allow members to redeem points only for flights, Aeroplan's 5 million active members can also redeem theirs for products from companies including Best Buy Co.'s Future Shop and Imperial Oil Ltd.'s Esso gas stations.

"It's far and away one of the best in the industry," said Jeff Johnstone, an editor with Inside Flyer magazine, a newsletter that covers the loyalty points business.

Last year, Aeroplan was ACE Aviation's most profitable division when it turned a profit of $99 million on sales of $509 million. In this year's first quarter, Aeroplan had a profit of $21 million on revenue of $172 million - while Air Canada recorded a net loss of $77 million.

Converting to an income trust will help the company avoid taxes by paying much of its cash flow to investors.

"With the formation of ACE last year, we streamlined and enhanced our corporate structure with a view to maximizing the inherent value of our overall franchise and each of our business units," ACE chief executive Robert Milton said in a statement.

"The Aeroplan public offering represents a giant step forward in the implementation of ACE's strategy of unlocking shareholder value through the monetization of its business units"

The Aeroplan announcement came a day after Air Canada received a commitment for a five-year maintenance contract worth as much as $1.5 billion to service planes for a combined America West Airlines and US Airways. In exchange, ACE Aviation pledged to invest $95 million in the merged company once US Airways emerges from bankruptcy protection.

Air Canada, whose $4 billion market value already exceeds that of the four largest U.S. carriers combined, might use the proceeds from the Aeroplan sale to pay a dividend or buy back its shares.

Even before Air Canada announced the Aeroplan spinoff, some observers had already shifted their gaze to the prospect that the carrier would follow suit with its maintenance unit, formally known as Air Canada Technical Services.

With files from Dow Jones
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old May 27th, 2005, 05:02 AM   #127
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

Big profits seen at Air Canada cargo unit
Expansion instigated: 'It's money that they are leaving on the table right now,' analyst says
Chris Sorensen
26 May 2005
National Post

Air Canada's most valuable payload isn't always the finicky business passengers who pay thousands of dollars for their executive-class tickets, but often the giant containers of unusual cargo stowed in the planes' gaping, metallic bellies.

For example, the country's largest airline is making a fistful of cash this spring flying huge volumes of fresh cherries over the Pacific Ocean to Japan, where locals are willing to pay top dollar for the flavourful red fruit.

"On any given day we could carry up to 30 or 40 tons of cherries," said Claude Morin, vice-president of Air Canada's cargo division. "And when the season is over, they will be replaced by something else.

"When it comes to air freight, if a country can produce a premium product, there will always be people somewhere who will pay whatever it costs to get it to market."

In fact, all sorts of perishable food items -- ranging from Atlantic lobster, to butchered horse meat, to fresh limes and asparagus grown in Peru -- are increasingly becoming a growth market for Air Canada's cargo unit, which, like all of ACE Aviation Holdings Inc.'s operating divisions, is in the midst of a significant expansion effort in order to help boost the value of the parent company.

Analysts say the cargo division is poised to become the company's next big profit centre behind the Aeroplan loyalty program, in the midst of being partially spun-off as an income trust, and Air Canada Technical Services, which is on the road to becoming a global aircraft maintenance supplier.

"There's a big market in cargo and its growing," said Jacques Kavafian, an analyst at Research Capital. "And for Air Canada, it's money that they're just leaving on the table right now."

Air Canada's cargo unit, which also does a brisk business flying car parts between Detroit and Germany for DaimlerChrysler AG, pulled in nearly $600-million in revenue in 2004 -- a number Mr. Morin has said he plans to double within five years. He said the subsidiary has identified 12 to 15 international markets for expansion in Europe, South America and Asia, which is currently responsible for a growing volume of trade with North America.

In a bid to take advantage of an expanded air services agreement between Ottawa and Beijing, Air Canada this month launched an all-cargo service between Toronto-Shanghai using a leased MD-11 freighter and said yesterday it will boost frequency on the route from three to five times a week. The airline is also planning a stop in Calgary for the freighter, which will give the booming prairie city a direct cargo link to Asia and Toronto.

Mr. Morin said the ultimate goal is to fly a dedicated fleet of cargo-carrying aircraft, as opposed to relying solely on the cargo capacity it purchases on Air Canada's existing passenger jets. In an effort to realize this goal, the company has already leased two MD-11 freighters and is looking at acquiring two Boeing 777 freighters as part of ACE Aviation's recent decision to purchase 32 new jets from the U.S. airplane manufacturer.

"I can see a point, in about three to five years, when about about 30% to 40% of our capacity is handled by freighters and about 60% is handled by twin production (planes that fly both passengers and cargo)," Mr. Morin said. "That's a nice balance because twin production is always very attractively priced, but you can still add capacity on key lanes where demand is very strong."

Air Canada once operated a small fleet of DC-8 cargo aircraft, but the business underwent a restructuring in the 1990s as its mainline carrier acquired newer Airbus and Boeing passenger jets that boasted better fuel efficiency, but still retained significant cargo-carrying capacity.

But while the changes saved money, it also created problems.

In 2003, during the peak of the SARS (Severe Acute Respiratory Syndrome) crisis in Asia, Air Canada dramatically scaled back its passenger flights to places like Hong Kong, leaving its cargo division with almost no lift to sell to freight forwarders, whose business was relatively unaffected by the outbreak.

Mr. Morin said the acquisition of new all-cargo planes will reduce the chances of a similar situation repeating itself, while allowing Air Canada Cargo to capture a bigger share of the overall market.

However, Air Canada isn't the only one eyeing cargo as a growth opportunity.

WestJet Airlines Ltd. is also adding more cargo capacity by virtue of rapidly expanding its passenger network. In addition, WestJet says it is considering overseas flying once it receives a special designation from regulators that allows it to operate its twin-engine Boeing 737s over large bodies of water.

A more immediate threat comes from CargoJet Canada Ltd., which has applied to federal regulators, along with a handful of other cargo operators, to begin offering service to Asia.

Ajay Virmani, CargoJet's CEO, formed the company in 2001 after purchasing the cargo operations of Canada 3000, which went bankrupt following 9/11. He has since doubled CargoJet's revenue and is in the process of converting the company into an income trust.

According to a prospectus filed with regulators, Cargojet provides about half the capacity for dedicated, overnight cargo transport in Canada. It generated $101-million in sales in 2004 with earnings before interest, taxes, depreciation and amortization of $9.5-million, the document says.

In addition to overseas markets, Cargojet said in the filing it sees further market opportunities in Canada as passenger airlines increase their reliance on smaller, regional jets for domestic flights. Air Canada is currently in the midst of deploying regional jets on domestic routes.

Mr. Morin considers Canada to be a "mature" domestic market for cargo, and said the carrier's shift to operating regional jets won't necessarily put it at a competitive disadvantage. "We will have less capacity, but increased frequency," he said.

Rick Erickson, a Calgary-based airline analyst, said it's about time Canadian air carriers woke up to the value of building their air freight businesses, particularly when it comes to countries like China.

"Canadian carriers have been absolutely blinkered to cargo," Mr. Erickson said.

"We've allowed foreign carriers to reap significant profit, and our industry is now dependent on capacity provided by foreign operators. Canadian carriers only carry something substantially less than 25% of the cargo the country generates. That's just wrong."
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old May 29th, 2005, 06:31 PM   #128
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

Air Canada Increases Shanghai Service to Five Times a Week
Will Introduce Prime Time Transcon Freighter Service

MONTREAL, May 25 /CNW Telbec/ - Following the successful launch of all-
cargo services between Toronto and Shanghai on May 15, 2005, Air Canada today announced its plans to introduce prime-time freighter service between Toronto and Calgary as it increases its Canada-China cargo flights from three to five times weekly. The new services will link Alberta to the rapidly expanding Chinese market using an MD-11 freighter aircraft capable of carrying 84 tonnes of cargo.

Air Canada plans to offer five flights per week (except Friday and Saturday) Toronto-Shanghai effective June 20, 2005. All flights are planned for a prime night time departure from Toronto of 23:30 hours. The carrier intends to operate four of the weekly flights (Monday through Thursday) via Calgary providing much needed additional cargo capacity in the key Ontario to Alberta market as well as linking Alberta to the Chinese market. Start-up date for the Calgary service is yet to be determined.

The service will further capitalize on the recently negotiated Canada-China bilateral air services agreement by linking the Alberta market to Shanghai, one of the fastest growing cities of the world. This expansion of cargo services is subject to Air Canada receiving all necessary approvals. "The strong customer response to our new Toronto-Shanghai all-cargo service provides us with the exciting prospect of introducing prime-time wide-body scheduled cargo service between Toronto and Calgary while expanding dedicated freighter services to Shanghai from our main Toronto hub," said Claude Morin, vice president cargo for Air Canada. "The new flights linking the Ontario and Alberta markets represent Canada's first ever domestic wide-body scheduled cargo service while the Calgary-Shanghai link will improve access from Alberta to the rapidly expanding Chinese market."

Garth Atkinson, President and CEO of The Calgary Airport Authority commented, "We are pleased that Air Canada will provide our shipping community with direct access to the emerging Chinese market from Calgary. As Calgary is consolidating its position as Western Canada's international logistics hub, we would like to thank Air Canada for recognizing Calgary's potential and for helping us make our region more competitive on a global scale."

Air Canada provides scheduled and charter air transportation for passengers and cargo to more than 150 destinations on five continents. Canada's flag carrier is the 14th largest commercial airline in the world and serves more than 27 million customers annually. Air Canada is a founding member of Star Alliance providing the world's most comprehensive air transportation network.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old May 30th, 2005, 03:45 PM   #129
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

Newest Jazz jet set for takeoff
Bombardier delivers first of 15 Jets to fly some Air Canada routes

Allan Swift
Canadian Press
28 May 2005

MONTREAL -- Air Canada Jazz took delivery of its first Bombardier CRJ-705 aircraft yesterday, described as a turning point for the regional airline taking over some domestic and cross-border routes from Air Canada.

Jazz will take delivery this year of 15 CRJ-705s, configured with 75 seats, the most seats Jazz can operate under an agreement with Air Canada and the pilots' unions of both airlines.

CEO Joseph Randell said the new fleet will allow Jazz to take over some routes from Air Canada as the larger airline focuses on international destinations like Asia. "This signifies a major turning point in our history."

The new jets will put Halifax-based Jazz into a stronger position to be partly spun off by ACE Aviation Holdings, which has long suggested it as a candidate for a share issue. ACE announced last week it will spin off about 15 per cent of its Aeroplan subsidiary, a sister company to Jazz, into a new income trust.

The first CRJ-705, which has a list price of $32 million (U.S.), will enter service June 1 between Calgary and Houston, geared for oil executives. Jazz will operate three return flights a day between the two cities, replacing two daily flights currently operated by Air Canada with the larger Airbus A319s.

Randell said the 75-seat planes will be used to add frequencies to high-density routes such as Toronto-Montreal, and also lead to new direct routes like Toronto-Houston and Toronto-Dallas. It has 10 business class seats and 65 in economy.

Yesterday, monitor Ernst and Young reported that proven creditor claims against the airline, which emerged from creditor protection last year after an 18-month restructuring, totalled $8.28 billion.

Creditors received about 10 cents on each dollar they were owed in the form of shares of ACE Aviation Holdings, the new parent company of Air Canada. The shares, which started trading for $20, closed up 10 cents at $37.98 on the Toronto Stock Exchange yesterday.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old May 30th, 2005, 06:43 PM   #130
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

Aeroplan believes trust has cash flow to fly
Report cites fees paid by partners

BRENT JANG
TRANSPORTATION REPORTER
30 May 2005
The Globe and Mail

Financial partners and Air Canada provide 90 per cent of Aeroplan's revenue, establishing a solid base for growth, according to the loyalty program's preliminary prospectus to become an income trust.

The document shows that Aeroplan's business model, first and foremost, relies on revenue from various business partners paying for the right to purchase and award Aeroplan miles.

There are also two key but lesser-known ingredients in the reward program's recipe for success: the “breakage” rate — miles never redeemed — currently estimated at 17 per cent; and the “float” of a 30-month average time lag between Aeroplan selling miles to business partners and incurring the cost of redemptions for rewards such as Air Canada flights.

Last year, Aeroplan's revenue totalled almost $700-million. Of that amount, financial services partners accounted for 63 per cent, Air Canada 27 per cent, other travel services 8 per cent and consumer products partners the remaining 2 per cent.

ACE Aviation Holdings Inc., the parent of Air Canada and Aeroplan, is providing details of the popular reward program in a 154-page prospectus, hoping to entice investors to buy trust units expected to go on sale by the end of June.

Investors examining Aeroplan's merits could also look in their wallets to find out why the customer loyalty program is confident that it has the steady cash flow to ensure a smooth conversion next month into a new trust.

Aeroplan chief executive officer Rupert Duchesne recently asked a business audience to count the number of credit cards they had tied to loyalty points and, right on cue, out of the wallets came CIBC Aerogold Visa and American Express AeroplanPlus cards, among many others.

Canadian Imperial Bank of Commerce and American Express Canada Inc. are two key reasons that Aeroplan believes it will prosper because those financial institutions pay fees to the loyalty program.

Since May 20, when ACE announced that it will be selling off an 18-per-cent stake in Aeroplan, company officials have declined to comment on the prospectus, citing the “quiet period” for the new Aeroplan Income Fund.

After subtracting various expenses, there could be $140-million this year in cash distributions available to unitholders, the prospectus said.

The fund will have a yet-to-be-determined number of units priced at $10 each.

Details on the size of the initial public offering are expected by the end of June, when the final prospectus is scheduled to be completed. The yield could be in the neighbourhood of 8.75 per cent, said Harry Levant, an independent income trust analyst.

“We consider the distributable cash estimates to be aggressive but achievable,” Mr. Levant wrote in his Aeroplan analysis.

Aeroplan benefits from the so-called margin or spread between how much it charges to sell miles to its business partners and how much it costs to purchase a product or service from those partners.

The average cost to Aeroplan to purchase a reward from one of its partners is almost 1 cent a mile. Based on 15,000 miles, for instance, that works out to an average cost of $148.29, covering the gamut of rewards such as flights, electronics and vacations. Air travel rewards were the most popular choice last year, with 90 per cent of consumers choosing flights.

“Upon the redemption of Aeroplan miles by its members, Aeroplan incurs the cost to acquire the desired reward, which in aggregate is less than the revenue received from the sales of the air miles,” Mr. Levant said. Aeroplan, founded by Air Canada in 1984, has five million active members.

As part of Aeroplan's strategy, members are being encouraged to “double dip” — for instance, buying Esso gasoline with a CIBC Aerogold Visa card and thereby collecting Aeroplan miles from both CIBC and Imperial Oil Ltd.'s Esso retailing chain, Mr. Levant noted.

Aeroplan, which has 60 partners representing more than 100 brands, hopes to diversify its revenue base.

Fadi Chamoun, an analyst with UBS Securities Canada Inc., estimates the new trust's total value will be between $1.56-billion and $1.77-billion. Industry sources add that the IPO could be for nearly 18 per cent of Aeroplan, including an overallotment option, issuing trust units worth almost $288-million. ACE will retain about 82 per cent of the Aeroplan Income Fund.

A portion of the proceeds from the Aeroplan offering will be distributed to ACE by the end of June.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old June 1st, 2005, 07:32 PM   #131
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

BE gets $50 million Air Canada order
31 May 2005

WELLINGTON, Fla. (AP) - BE Aerospace Inc., a maker of airplane seats and cabin components, said Tuesday that it received a $50 million contract from Air Canada to upgrade seating on 143 aircraft.

BE will provide the Montreal-based carrier with its Spectrum family of coach and first class seating, supporting Air Canada's plan to outfit all its mainline planes with personal, seat-back video systems. The touch-screen video systems will be supplied by another company, BE said. Air Canada is a unit of Saint-Laurent, Quebec-based ACE Aviation Holdings Inc.

BE expects to begin deliveries in late 2005.

Products for existing aircraft account for about 60 percent of BE's sales.

BE Aerospace shares rose 16 cents to $14.59 in morning trading on the Nasdaq.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old June 2nd, 2005, 07:37 PM   #132
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

Air Canada Jazz brand new CRJ-705 Jet departs Calgary for Houston giving travellers more choice and increased flights

CALGARY, June 1 /CNW Telbec/ - The first Bombardier Canadair Regional Jet 705 in commercial service, operated by Air Canada Jazz, departed from Calgary to Houston today. Air Canada Jazz is the world's first operator of the 75- seat, Canadian-made aircraft.

"We are delighted to have the first CRJ-705 in the fleet link North America's two vibrant oil patch centers, Calgary and Houston, giving business travellers between both cities more choice with increased flights and more convenient departure times," said Ben Smith, Vice President, Network Planning. "The addition of these jet aircraft to the Air Canada Jazz fleet will allow us to significantly enhance our customers' travel experience, offering superior
comfort and choice in non-stop markets served."

Effective July 1, Calgary-Houston flights will increase to three daily, offering business travellers in either city a choice of morning, mid-day or evening flights timed for convenient connections to and from Air Canada's worldwide network. Flights will depart Calgary at 07:45, 12:15, and 18:15, and will depart Houston at 07:40, 13:25 and 17:55.

Jazz took delivery of its first CRJ-705 aircraft, operating today as AC8102, in a ceremony held at Bombardier's facility in Montreal on May 27 and will be taking delivery of up to three new CRJ-705 aircraft per month for a total of 15 by December 2005. The CRJ-705 aircraft is configured in two classes of service with 10 seats in Executive Class featuring three abreast seating offering 37 inches of legroom, and 65 seats in Hospitality with four
abreast seating offering an industry leading 34 inches of legroom. Both cabins feature all leather seating, and in-seat audio and personal television systems will be installed beginning in the fall of 2005. The Bombardier CRJ-705 aircraft has a cruising speed of 880 km/h and a range of more than 3,500 km with a total payload of 7,778 kg including a cargo payload of 700 kg.

From Calgary, Air Canada offers 671 scheduled flights each week to 5 cities throughout Alberta, and 18 destinations across Canada, the USA, Caribbean and Europe.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old June 3rd, 2005, 08:34 PM   #133
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

Air Canada routes blow to WestJet: Calgary-Las Vegas added
'Trumps WestJet' and is 'just the beginning': analyst

Chris Sorensen
3 June 2005
National Post

After a short breather following the collapse of Jetsgo Corp., the competition for Canada's skies is once again heating up as Canada's three largest carriers -- Air Canada, WestJet Airlines Ltd. and CanJet Airlines -- attempt to outmanoeuvre each other on domestic and transborder routes.

Air Canada said yesterday the arrival of new regional jets has allowed it to launch several new city pairs, including Calgary-Las Vegas and Vancouver-Las Vegas.

The routes will be served by an Airbus A319 aircraft, which was previously used to fly between Houston and Calgary before it was replaced this week by a new 75-seat Bombardier CRJ-705 flown by Air Canada's regional carrier Jazz.

"This trumps WestJet," said Rick Erickson, an independent Calgary-based analyst, who said the Calgary-based low-cost carrier had been eyeing the gambling Mecca for its portfolio of leisure destinations in the United States.

"More importantly, this is just the beginning," Mr. Erickson said, referring to the anticipated delivery of between 45 and 90 new regional jets from Bombardier and Embraer over the next several years. "Does this spell trouble for WestJet? I'm sorry to say, but I think it does."

Mr. Erickson added that Air Canada's move to enter Las Vegas could also be tied to parent company ACE Aviation Holdings Inc.'s recent decision to invest US$75-million in the merger of US Airways Inc. and America West Airlines. In addition to giving Air Canada Technical Services a line on $1.5-billion worth of outsourced maintenance work, the 7% equity state is being touted as a way for Air Canada to increase its presence in U.S. markets by gaining better access to gates at key U.S. airports.

Air Canada also said yesterday it will use existing regional jets and turbo-prop aircraft to add new non-stop flights on domestic routes. They include Edmonton-Regina, Edmonton-Saskatoon, Hamilton-Montreal and Hamilton-Ottawa.

"Air Canada is now able to implement significant network improvements that will benefit consumers with more point-to-point, non-stop flights and enhanced schedules," said Ben Smith, Air Canada's vice-president of network planning, in a statement.

Karl Moore, a business professor at McGill University, said Air Canada's new approach to the domestic market, using smaller aircraft to offer more non-stop service between more cities, promises to create headaches for WestJet, which is limited to flying busier routes using its larger Boeing 737 aircraft. "What they are doing is providing opportunities in these cities that will take some of WestJet's customers away."

However, Clive Beddoe, WestJet chief executive, said he is not overly worried about competition from Air Canada or Jazz, telling attendees at an industry conference hosted by Insight Information yesterday that he expects the country's largest airline to suffer from rising costs. Nor does he see Nova Scotia-based CanJet as much of a threat, despite the fact that CanJet recently began operating flights in Western Canada, WestJet's backyard.

Mr. Beddoe said WestJet plans to continue adding transborder flights to its network and has recently renewed a deal worth $300-million to continue flying sun-seekers for charter tour operator Transat A.T. Inc.

He also poured cold water on Air Canada's decision to invest in the U.S. airline market. "I think it's going to be very interesting to see how the US Airways-America West thing works out," Mr. Beddoe said. "I would suggest it's going to be a negative for America West and could end up damaging it."
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old June 4th, 2005, 01:48 AM   #134
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

Air Canada to introduce new non-stop routes
Brent Jang
03 June 2005
The Globe and Mail

Air Canada plans to introduce new non-stop routes this year. Starting Aug. 1, Air Canada's regional Jazz airline will provide Edmonton-Regina and Edmonton-Saskatoon service. On Sept. 18, Jazz will launch Hamilton-Montreal and Hamilton-Ottawa routes, and on Oct. 30, Air Canada's mainline will begin Vancouver-Las Vegas, Calgary-Las Vegas and Montreal-Las Vegas flights. Air Canada is also launching non-stop service Nov. 3 to Santo Domingo from Toronto.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old June 5th, 2005, 05:37 AM   #135
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

Air Canada Jazz hints at going public
BRENT JANG
4 June 2005
The Globe and Mail

TORONTO -- Air Canada's regional Jazz airline is sprucing itself up for the possibility that it could become a publicly traded company, Jazz president Joseph Randell said yesterday.

ACE Aviation Holdings Inc., the parent of Air Canada and Jazz, plans to sell trust units in its Aeroplan loyalty program by the end of this month. One of the other spinoff candidates is Jazz.

Mr. Randell emphasized that, unlike Aeroplan, ACE hasn't decided yet on whether to sell a minority stake in Halifax-based Jazz to investors, and even if it does sell, the timing is unclear.

“It's going to be driven by many factors, by things like market conditions, and the ACE board obviously would ultimately make decisions,” he said.

In the meantime, Jazz is increasingly operating at arm's-length from Air Canada, including charging Air Canada an hourly flying rate under a so-called capacity purchase agreement.

Jazz had $213-million in sales in the first three months of this year, or about one-tenth of ACE's total revenue in the quarter. And Jazz had $27-million in operating profit in the first quarter, compared with ACE's $77-million loss.

Steve Garmaise, an analyst with Genuity Capital Markets, said that, after ACE converts Aeroplan into an income trust, the spotlight will shift.

Air Canada Technical Services, which does aircraft maintenance, Jazz and Air Canada Vacations are among the entities where ACE is seeking to unlock hidden value, he said.

Mr. Randell said Jazz's passenger capacity is expected to rise 35 per cent this year.

“We're in a very strong position in terms of our growth, our fleet, our results. Jazz is a healthy regional airline,” he said after a presentation to delegates at a Toronto airline conference organized by Insight Information Co.

Jazz's fleet is expected to grow to 126 Dash-8s and Bombardier CRJs by the end of this year, from 91 aircraft at the end of 2004.

Air Canada and Jazz emerged from 18 months of bankruptcy protection last September.

“We do feel reborn,” Mr. Randell said.

But the transformation into an efficient regional airline has been a painful one, including job and wage cuts. Jazz now employs 3,400 workers, compared with about 5,500 before the filing for court protection from creditors.

Meanwhile, Halifax-based CanJet Airlines expects its fleet to grow to 17 aircraft in 2007 from 11 this year, said Ken Rowe, chief executive officer of IMP Group International Inc., CanJet's parent.

He said CanJet, which leases Boeing aircraft, is considering other models, such as Bombardier, Embraer and Airbus aircraft, as it expands. Edmonton and Winnipeg may be added as destinations within a year.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old June 5th, 2005, 05:38 AM   #136
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

Air Canada ranked best in North America
4 June 2005
The Globe and Mail

Air Canada has been ranked as North America's best airline in a worldwide survey of more than 12 million air travellers. The Star Alliance, of which Air Canada is a founding member, was ranked as best airline alliance.

The annual survey of air travellers was conducted by U.K.-based research firm Skytrax between June, 2004, and May, 2005, using 35 different aspects of passenger satisfaction for each airline's product and service standards.

JetBlue Airways and Continental were ranked second and third, respectively, in North America. British Airways was picked top airline in Europe. Ranked as the top five airlines in the world overall were Cathay Pacific, Qantas Airways, Emirates, Singapore Airlines and British Airways.

For more information, visit www.airlinequality.com .
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old June 7th, 2005, 05:55 PM   #137
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

Air Canada, WestJet fly fuller planes in May

TORONTO, June 7 (Reuters) - Canada's top two airlines flew fuller planes in May, as the air travel market rebounded and the two carriers benefited from the failure of a competitor.

Air Canada, the operating arm of ACE Aviation and the country's dominant airline, said its passenger load factor -- a measure of how successfully it filled seats -- was 79.9 percent, its highest ever for May, compared to 78.5 percent in the same month last year.

Calgary, Alberta-based no-frills WestJet Airlines Ltd. said its load factor for May was 70.6 percent compared with 65.1 percent in May last year.

Both airlines are adding new jets to their fleets to replace older aircraft and boost capacity as they continue to benefit after privately held, no-frills competitor Jetsgo filed for bankruptcy earlier this year.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old June 8th, 2005, 08:15 PM   #138
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

World Airways To Expand Cargo Service Between China and North America for Air Canada
7 June 2005

PEACHTREE CITY, Ga., June 7 /PRNewswire-FirstCall/ -- World Airways, a wholly owned subsidiary of World Air Holdings, Inc. , has reached agreement for a multi-year ACMI wet-lease contract with Air Canada to operate an additional MD-11F freighter aircraft for international cargo service, subject to Air Canada board approval. Under the agreement, World would operate two MD-11F aircraft for Air Canada through August 2007 between Toronto, Canada; China and points in North America. The amended contract has an estimated value of $101 million. World launched service with the first aircraft in May 2005, and the second begins in June.

"We welcome the opportunity to expand our new partnership with Air Canada to support their growing cargo operation," said Rob Binns, World's senior vice president, marketing and planning. "We will operate five flights a week between Toronto and Shanghai, with intermediate service to Calgary on four of those flights."

"In view of strong customer response to our recently introduced Toronto- Shanghai all-cargo service, we are excited with the prospect of expanding dedicated freighter services to Shanghai from our main Toronto hub," said Claude Morin, vice president, Air Canada International Cargo Division. "The Calgary-Shanghai link is also a priority as we look to improve access from Alberta to the rapidly expanding Chinese market."

The additional aircraft became available because of a delay in previously announced new service by Thai Air Cargo. With this expanded Air Canada agreement, World's five MD-11 freighters will be leased into 2007.

World Airways, a wholly owned subsidiary of World Air Holdings, Inc., is a U.S.-certificated air carrier providing customized transportation services for major international cargo and passenger carriers, the United States military, and international leisure tour operators. Founded in 1948, World operates a fleet of 17 wide-body aircraft to meet the specialized needs of its customers. For information, visit http://www.worldairways.com/ .

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties including, but not limited to, the impact of competition in the market for air transportation services, the cyclical nature of the air carrier business, reliance on key marketing relationships, fluctuations in operating results and other risks detailed from time to time in the company's periodic reports filed with the SEC (reports are available from the company upon request). These various risks and uncertainties may cause the company's actual results to differ materially from those expressed in any of the forward looking statements made by, or on behalf of the company in this release.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old June 8th, 2005, 11:54 PM   #139
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

Air Canada's $6B Boeing 777-787 order up in air as pilots negotiate: Milton
June 8, 2005

TORONTO (CP) - Air Canada may cancel a $6-billion-US order for 32 new Boeing long-range airliners if it doesn't reach an agreement with its pilots by Friday, airline chief Robert Milton has disclosed.

The purchase of 18 Boeing 777s and 14 of the new 787 Dreamliners was described as firm, although subject to "several conditions," when it was announced April 25.

Milton, chairman and chief executive officer of parent company ACE Aviation Holdings Inc., told a transport industry conference in New York on Wednesday morning: "I would highlight that we're actually in the final stages of negotiating with our pilot group the terms of the contract by which they'll fly these aircraft. We do have the ability, if we cannot reach an agreement by the 10th of June, to without penalty cancel these orders."

He added: "I think Boeing would be quite happy to take them and put them somewhere else if we can't figure it out. It is my hope, obviously, that we get it done. If we don't, we'll have to revert to Plan B - which would be adding more used aircraft."

The president of the Air Canada Pilots Association, Kent Wilson, said negotiations "are still going on, and when we have news I'll be able to comment more on it."

Wilson noted that whenever new aircraft are added to the fleet, there are talks over pay, training and other issues. The June 10 date, he added, is between Air Canada and Boeing.

Milton said the airline regards the new Boeing planes as "a game-changer going forward" as it expands on long international routes, particularly to Asia.

A spokesman for Boeing said the aircraft maker wouldn't comment on an "ongoing negotiation."

However, Boeing officials issued a glowing forecast Wednesday for the airliner industry, predicting the market will be worth $2.1 trillion US in the next 20 years as the global airline fleet more than doubles. That projection is an increase of $100 billion from the company's forecast last year.

Boeing projects demand for 25,700 new commercial passenger and freighter planes during the next 20 years, up from the 25,000 it predicted a year ago.

When the deal with Air Canada was announced, ACE (TSX:ACE.B - news) said that including options the order could expand to $15.9 billion US, totalling 36 Boeing 777s and 60 Dreamliners - a new model scheduled to be delivered in 2010.

Coincidentally, a media event in Montreal to show off a 777 en route to the Paris Air Show was postponed hours before it was to have taken place Wednesday. Air Canada cited a procedural delay related to maiden-flight approvals needed from the U.S. Transportation Security Administration.

Milton also told the webcast conference that "Wal-Mart pricing is permanently here" in the travel industry and Air Canada is reacting by morphing from a "legacy airline" to a "loyalty airline."

Its strategy is to provide "commodity pricing at the low end," while bulking up yields by charging more for scheduling flexibility and full frequent-flyer points.

"We are always competitive with our low-cost competitors," Milton declared. "Day in, day out, flight for flight, they know there is nowhere to go in terms of dropping prices that we won't match them."

Milton said Air Canada and its Jazz regional unit have been "pleasantly surprised" by how much they have gained from the domestic market share held by Jetsgo before that discount airline collapsed in March.

And he said Air Canada has benefited on international routes - while U.S. airlines have been hurt - because of the American government's stringent security requirements.

"People just find it too much of a hassle to change planes in the U.S."
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old June 10th, 2005, 01:44 AM   #140
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,913
Likes (Received): 18182

Aeroplan units to be priced at $10
ACE expects up to $287.5 million Will keep 85 per cent of business

Bloomberg News
9 June 2005

ACE Aviation Holdings Inc., owner of Air Canada, expects to raise as much as $287.5 million from the planned sale of a 15 per cent stake in the Aeroplan customer-rewards program.

ACE will sell 25 million units for $10 each in an initial public offering of Aeroplan Income Fund partnership units and keep the rest of Aeroplan LP, according to sale documents. Banks arranging the transaction have the option to sell another 15 per cent after the arrangement closes, on or about June 29.

Under decisions to be finalized June 21, the units will make monthly payouts equal to 7.5 per cent to 8.5 per cent a year, valuing Aeroplan at $1.65 billion to $1.87 billion, the documents said.

The deal would be the biggest income-trust IPO since January, according to CIBC World Markets.

"It'll be reasonably well-received," said UBS Securities analyst Fadi Chamoun, who valued Aeroplan at $1.5 billion in May.

"The underlying cash flow is relatively stable, with declining reliance on the airline business," added Toronto-based Chamoun, who rates ACE "buy 2."

Aeroplan has about 5 million members, who can redeem points for products and services from 60 companies.

Those firms include Air Canada, Best Buy Co.'s Future Shop and Imperial Oil Ltd.'s Esso gas stations.

Aeroplan gets revenue from selling points to companies, which then issue the points to consumers as rewards for making purchases.

Aeroplan generated "adjusted" earnings before interest, taxes, depreciation and amortization of $131.9 million in the 12-month period ended March 31, the documents said. The unit has a $100 million bank loan to help finance acquisitions, the documents said.

Aeroplan had profit of $21 million on revenue of $172 million in the first quarter, when ACE had a net loss of $77 million. Last year, Aeroplan had profit of $99 million on sales of $509 million, making the business ACE's most profitable unit.

Income trusts avoid taxes by paying most of their cash flow to investors.

RBC Capital Markets is leading the sale along with 14 other banks, including CIBC World Markets Inc. and Genuity Capital Markets.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote


Reply

Tags
air canada, canada, north american airlines, star alliance

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Related topics on SkyscraperCity


All times are GMT +2. The time now is 03:19 PM.


Powered by vBulletin® Version 3.8.11 Beta 4
Copyright ©2000 - 2018, vBulletin Solutions Inc.
Feedback Buttons provided by Advanced Post Thanks / Like (Pro) - vBulletin Mods & Addons Copyright © 2018 DragonByte Technologies Ltd.

vBulletin Optimisation provided by vB Optimise (Pro) - vBulletin Mods & Addons Copyright © 2018 DragonByte Technologies Ltd.

SkyscraperCity ☆ In Urbanity We trust ☆ about us | privacy policy | DMCA policy

tech management by Sysprosium