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( For retirees of the new Air Canada family)
Number 498 July 1st, 2000, We first Published in October 1995
Chief Pilot - Vesta Stevenson - Co-pilot - Terry Baker
email address is
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HAPPY CANADA DAY.
. Need to know.
To:
Subject: TPP Pass Inquiries
Isabel Rodrigues has the title Travel Partner Program Pass Charges Inquiries
Address: Air Canada Building, 355 Portage Avenue, Winnipeg, Manitoba, R3C 2N2
Phone nr: (204) 941-2666 Fax : (204) 941-2939 Teletype : YWGANAC
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. We welcome -
Chuck Vrana pilot/captain lives in Cambridge, ON email
Shirley Allen (survivor spouse of CAL employee) lives in Penticton, B.C.
Email:
retired C.A.I. Supervisor Maintenance Operations Center Vancouver
Brock Pedersen of CAI living in Airdrie AB email
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Integration Update
June 27, 2000
AIR CANADA RESPONDS TO COURT APPROVAL OF CANADIAN AIRLINES DEBT
RESTRUCTURING DELIGHTED WITH OUTCOME
Air Canada was informed today that the Alberta Court of Queen's Bench has
approved Canadian Airlines Corporation's Plan of Compromise and Arrangement
under the Companies' Creditors Arrangement Act (CCAA). Madame Justice
Marina Paperny delivered her decision in court earlier in the day.
The Court ruled that the Plan was fair, reasonable and equitable. It
furthermore found that the Plan represents a solid chance for the continued
existence of Canadian, maintains over 16,000 jobs, protects consumers and
preserves the integrity of our national transportation system while we move
towards a new regulatory framework.
" We are delighted with this outcome. This decision provides Canadian
Airlines with the stability necessary to continue its business operations in
conjunction with Air Canada," said Robert Milton, President and Chief
Executive Officer of Air Canada.
The decision clears the way for Canadian Airlines Corporation to complete
the closing process for the Plan. Canadian Airlines International Limited
will become a wholly-owned subsidiary of Air Canada, once all eligible
creditors have been paid.
" Our focus remains firmly fixed on a successful integration of the two
carriers for our customers, employees, and all of Canada. Today marks an
important milestone in this process," concluded Mr. Milton.
QUESTIONS AND ANSWERS CCAA RULING
Q1 Since the Plan has been approved by the Court, when will Air Canada take
up the shares of Canadian Airlines?
A Air Canada is not taking up the shares of Canadian Airlines Corporation,
the public company that is listed on the TSE. Under the Plan, Air Canada
will become the sole shareholder of Canadian Airlines International, the
operating company that actually runs Canadian Airlines.
The holding company known as "Canadian Airlines Corp." will become a shell
company without any assets or liabilities. The TSE has announced that this
company will be delisted upon implementation of the Plan. We presume that
this will follow shortly. In due course, we expect that Canadian Airlines
Corp. will simply be dissolved.
Q2 Is Canadian Airlines now safe from bankruptcy? What is going to happen
to its customers and employees under the Plan?
A The Plan is designed to permanently remove the spectre of bankruptcy which
has hung over Canadian Airlines for almost a decade now. Canadian Airlines
will be a wholly-owned subsidiary of Air Canada along with Air Ontario, Air
Nova and Air BC. The customers and employees of Canadian Airlines are not
affected by the Plan in any way.
Q3 When does Canadian lose its court protection?
A We expect to complete the restructuring within a matter of days. Canadian
Airlines will then emerge from court protection. The court protection
currently in place extends to July 5, but we hope that the restructuring
will have been completed by then.
Q4 Can the creditors who have opposed this Plan appeal?
A Over 75 per cent of the creditors did approve the Plan. Only two
creditors both institutions from outside Canada asked the Court not to
approve the Plan. We understand that there is no right of appeal unless the
court agrees to grant leave. The opposing creditors have advanced a variety
of arguments. We are confident that no appeal will be successful and we
believe that the appeal court will appreciate the urgency of completing this
restructuring completed without any further delay.
Q5 Does the decision affect the sale of Canadian Regional?
A This decision does not affect the sale of Canadian Regional. Air Canada
has given its commitment to the Competition Bureau to offer Canadian
Regional for sale at fair market value. That value is currently being
resolved and the process is moving forward as quickly as possible.
Q6 Robert Milton has said that if creditors had rejected the Plan, it would
"make his day" because Air Canada would simply pick up the pieces. What is
your perspective on this comment?
A Since October 19, 1999, Air Canada has clearly indicated its intention to
play a constructive role in the orderly restructuring of the Canadian
airline industry which the government of Canada announced on August 13,
1999, when section 47 of the Canada Transportation Act was invoked.
The failure of Canadian would have been extremely disruptive to the flying
public, the national air transportation system, the numerous communities
served by Canadian Airlines and, of course, the employees and suppliers.
The government wished to allow for a private sector response to those
issues. Air Canada's constructive approach caused a minimum of impact on
communities and the employees while being fair to creditors and responsible
to Air Canada's shareholders.
Q7 What is the impact of the vote on the outstanding shares of Canadian
Airlines?
A The publicly traded company, Canadian Airlines Corp. will be a shell
company with no further connection to Canadian Airlines (which will be a
wholly-owned subsidiary of Air Canada). The TSE has indicated that these
shares will be delisted upon implementation of the Plan. We expect that in
due course, Canadian Airlines Corp. will be dissolved.
Q8 How many shares of Canadian Airlines are left and who owns them?
A The numbered company partly owned by Paul Farrar will become a
wholly-owned subsidiary of Air Canada as part of the closing of this
restructuring. That company will still own 82% of Canadian Airlines Corp.'s
shares even though Canadian Airlines Corp. will be a shell and the shares
will not have any value. The other, approximately 8 million, shares are
owned by the public who, for one reason or another, did not tender to the
take-over bid in December. We have no information as to who the shareholders
currently are. Some people were speculating on the ability of certain
parties to try to obtain payment ahead of creditors in the court process.
That would have been fundamentally unfair to the creditors whose claims have
been compromised in the Plan.
Q9 What is left in the CCAA process to be accomplished?
A Now that the Plan has been approved, Air Canada and Canadian will be
working together to complete the transaction as soon as possible. We hope
to have the matter completed in a matter of days.
Q10 What happens to employees and customers now that the Plan has been approved?
A Current employees are not affected by the Plan in any way. Air Canada has
given its commitment to the Government of Canada that there will be no
involuntary terminations of employment for a two-year period. Customers are
also completely unaffected. Canadian Airlines will continue to operate a
full schedule of flights with the same commitment to outstanding customer
service.
Q11 To what degree can Canadian's poor Q1 results be attributed to lack of
customer confidence?
A Canadian's poor Q1 results were reflective of both rising fuel prices as
well as the revamping of a the domestic schedule which shifted some traffic
over to Air Canada on certain domestic routes however the results have
already started to indicate the restructuring is paying off. Canadian
Airlines customers have stayed remarkably loyal and the impact on the
airline of these proceedings has been kept to a minimum.
It is worth noting, however, that uncertainties associated with the process
have prevented Canadian Airlines from accessing all of the benefits that can
be achieved by a close integration with Air Canada.
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. We recently told you about the 'Ambassadors' at YVR, YYC and YYZ.
Bernie Danis sends us this information -
In July of 1999, a greet and meet program was instituted at the Kelowna Airport,
using the concept of a volunteer host program. It is designed as a customer/visitor
focused initiative to aliviate the anxieties inherent to modern air travel, creating a safe,
secure and user friendly terminal atmosphere for all airport visitors. The goal is to make
the travellers first contact with Kelowna (YLW) a positive stress free experience.
A contingent of 40 volunteers has been assembled including three former TCA flight
attendants, R. Jobson, G.Aird and C. Henderson and six AC retirees, G.Daman,
Gerry and Lise Damskov, B.Danis, R.Goran and J.Talbot.
More information can be had from Ron Goran, Director of Okanagan Pionairs at
(250)712-9723
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. Spotted by our Chief pilot -
15 YEARS LATER, AIR INDIA BOMBING CASE STILL OPEN
Although 15 years have passed since 329 people were killed in the bombing of an Air
India plane, the RCMP say they're confident they will eventually bring the case to trial.
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. Upcoming events in the Okanagan area -
Kamloops International Air Show July 22nd
Kelowna Air Show August 5th
Penticton Air Show August 6th
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. From the YYZNEWS issued by Brian Dunn -
Four leading airlines have announced the formation of a new global alliance called
SkyTeam. The founding partners include Aeromexico, Air France,
Delta Air Lines, and Korean Air.
CSA Czech is reported as a possible new member to the SkyTeam grouping later
this year.
Tenzing Communications Inc, a global communication provider that
offers frequent business travelers in-flight access to the "Best of the Web" content
and e-mail, has signed a Memorandum of Understanding with Air Canada to do a
type-trial on the airline's Boeing 767s starting in the third quarter of 2000.
The trial will include multi-faceted e-mail capabilities and Web content, global
roaming, Internet access, and a frequent traveler services program.
Air Canada will be the first airline to conduct a type trial of the Tenzing product
and if successful, the airline plans to widely deploy the onboard email and
Internet services across its fleet.
Following is a - mayday - from Brian Dunn -
Pearson Airport Viewing Area Petition
Many people have written us asking whether we have heard or know of any plans that the Greater Toronto Airports Authority have in creating proper aircraft viewing areas. To date the GTAA has committed to nothing and from our personal experiences and replies from them, all comments are being forwarded to the Airport Development Committee for their consideration.
There is a web site established
http://www.interlog.com/~rollers/petition.html
There is an introductory paragraph explaining the issues, then a draft
letter that will be sent to the GTAA once we get responses in. I would
also like to emphasize that it is not directed solely at people in the
greater Toronto area, but anyone, no matter where they live can feel
free to speak up on this issue and submit their own comments.
Thanks Brian Dunn
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. Terry's travel tips.
Gardens Motel, 13055 Lundys Lane, Niagara Falls, Ontario Canada L2E 6S4
Phone (905) 227-0891 or 1-888-292-5096 Fax (905) 227-3720
Deluxe Jacuzzi Rooms, Group Rates, Bus Tours Welcomed. Rooms located away
from the traffic flow. Family Rooms, Queen & Double sized beds. Children under 12
stay free ! Picnic Area, Playground and Outdoor Swimming Pool.
Located just a short drive from the Falls, Casino, Marineland and all Attractions.
Located just a few minutes walk from beautiful Niagara Falls. Walk alongside the river
or take the maid of the mist boat journey.
Reservations 14 days in advance by phone, or fax. A 10% discount off regular rates
offered to active and retired airline employees. Based on availability.
Must show valid id at check-in. Rates subject to change.
Jamaica Dream Villas, Columbus Heights, Ocho Rios, Jamaica
Phone 770-4360416 or 770-4365676 Email:
Regular rate us$1500, pos space Airline rate us$699 7 days 6 nights for 2 adults
& 2 kids RATED BEST AIRLINE DEAL ON 1ST CLASS GROUP OR FAMILY
VACATION (added adults $200 ea daily.)
Hawaiian Princess, 84-1021 Lahilahi St. #506, Makaha, Oahu, Hawaii US 96792
Phone 623 561 5007 Fax 623 561 2869
This OCEANFRONT condo is situated on a white fine sand beach nestled between two mountains in Makaha. Makaha is "quiet" country on the leeward side of Oahu, where
sunshine is the hallmark and abundant year round. Only 30 minutes from
the airport, but "A World Away From Waikiki" - or just a 45 minute drive to all the
activities in Honolulu.This fully equipped deluxe condo has it all.
Rates - Airline rates are $75.00 per night which INCLUDES cleaning fees and taxes.
4 night minimum. Parents and retirees are eligible
Contact: Nora Mitchell 623 561 5007,
Special Offer Stay at The Princess for 7 nights and the 8 night is FREE.
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Smilie.
Sign seen at a wilderness camp ground -
'Our campground sites are immaculate; all remains of the campers who stayed before
you are removed daily'
Sign at a 5-star luxury hotel -
'Our bathrooms are conveniently located close to the hotel'.
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. DID YOU KNOW?
That you can read or retrieve back issues of "theNetLetter" ?
Just visit our web site at:
http://www.acfamily.net/netletter
and click on the "Archives" button.
This area is only open to "the NetLetter" subscribers and you will
need the following password to enter -
User Name: netletter Password: vesta
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Mailing of 'the NetLetter" is courtesy of Alan Rust administrator of
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