BBC
Saturday Apr 26, 2008 Air Canada to charge $25 for second bag Wednesday 16 April 2008 (ACE.B : TSX : $19.29), Net Change: 0.22, % Change: 1.15%, Volume: 82,383 Wednesday 16 April 2008 Air Canada (AC.A : TSX : $8.74) Tuesday 15 April 2008 (ACE.B : TSX : $19.00), Net Change: -0.63, % Change: -3.21%, Volume: 128,570 Saturday Apr 5, 2008 Saturday Apr 5, 2008 What's next - a special 'no-shock' fee from Hydro-Québec? Friday Apr 4, 2008 Air Canada hits a new low in passenger service Thursday Apr 3, 2008 Air Canada happy to go extra mile - for a fee Tuesday 12 February 2008 (ACE.A : TSX : $23.60) Q4 preview Monday 11 February 2008 ACE.A C$22.26 Buy Target C$30 from TD Air Canada (AC.A : TSX : $10.73) ACE Aviation Holdings (ACE.B : TSX : $23.44), Net Change: 1.19, % Change: 5.35%, Volume: 203,573 Saturday 09 February 2008 AIR CANADA COULD BE IN FOR CHANGE Friday Feb 8, 2008 Air Canada seems on right course as it faces sky-high fuel costs and slowdown threat Friday 18 January 2008 (ACE.B : TSX : $24.85) To sell 10.6% of Jazz Thursday 17 January 2008 (ACE.B : TSX : $24.99), Net Change: -0.91, % Change: -3.51%, Volume: 603,561 Tuesday 15 January 2008 ACE Aviation Holdings (ACE.B : TSX : $26.98) Monday 14 January 2008 (ACE.B : TSX : $27.90), Net Change: -0.46, % Change: -1.62%, Volume: 478,643 RBC ACE Aviation Holdings (ACE.B) - $27.92 - Plan Is On Track Air Canada (AC.B) - $11.75 - The Economy and ACE Wind-up Tuesday 08 January 2008 ACE Aviation Holdings (ACE.B : TSX : $28.17), Net Change: -0.05, % Change: -0.18%, Volume: 228,449 Monday 17 December 2007 (ACE.B : TSX : $28.10) Thursday 06 December 2007 Air Canada (AC.A): $12.29 – Implications of ACE Unwinding Tuesday 04 December 2007 (ACE.A-T, ACE.B-T) C$27.68 Brian Morrison, CA, 416 982 2753 TORONTO: COMPUTER GLITCH DISRUPTS THOUSANDS OF AIR TRAVELLERS Tuesday 13 November 2007 Air Canada (AC.A : TSX : $13.83)
ACE Aviation Holdings (ACE.B : TSX : $28.09) Saturday Nov 10, 2007 Air Canada parent's days numbered as profit rises Wednesday 07 November 2007 (ACE.B : TSX : $29.89) Friday Oct 12, 2007 MONTREAL: AIR CANADA EXPECTS NEW BOEINGS DESPITE ANNOUNCED DELAY Wednesday 10 October 2007 ACE Aviation Holdings (ACE.B : TSX : $29.20) Tuesday 02 October 2007 ACE Aviation (ACE.B) agreed to sell stakes valued at $275.1 million in its Jazz Air regional carrier and the Aeroplan customer- loyalty program valued at $481.8 million to further pare its holdings.
Friday 28 September 2007 The Financial Times reports that the Icelandic fund FL Group wants American Airlines to spin off part of its loyalty program. A spin off by American Airlines would be similar to what ACE Aviation (ACE) did with Aeroplan in 2005.
Wednesday 05 September 2007 Lessons from India Tuesday 14 August 2007 MONTREAL: AIR CANADA BANKING ON NEW PLANES Friday 10 August 2007 Air Canada profit climbs 2% Wednesday 01 August 2007 rci AIR CANADA AGAIN RATED FIRST Friday 13 July 2007 Air Canada's pet ban plan partly nixed Karl Moore of McGill University talks to Robert Milton of ACE Aviation about what it takes to be a leader Sat 07/07/2007 CHARLOTTETOWN: AIR CANADA, P.E.I. BURY THE HATCHET Friday 06 July 2007 MONTREAL: SALE OF AIR CANADA MAINTENANCE UNIT IMPENDS Saturday Jun 23, 2007 ACE maintenance flies south Friday 22 June 2007 NO-WOOF, NO-MEOW, NO-FLY Wednesday 13 June 2007 ACE Aviation Holdings Inc. (TSX: ACE.B): $26.19 - Plan to Surface Shareholder Value has Worked:
Outperform, Above Average Risk, Price Target: $38.00 (prev. $43.00) 8 June 2007 CALGARY: AIR CANADA, WESTJET SET SEAT RECORDS Monday 21 May 2007 Landing gear collapses on Air Canada Jazz flight Monday 14 May 2007 Air Canada loses $34-million in the first quarter Friday 11 May 2007 Air Canada loses $34-million in the first quarter March 5, 2007 ACE Aviation (ACE.B) – $36.00 – Gradually Disappearing TD target= C$45
3 Mar Friday 02 March 2007 ACE Aviation to distribute $603-million in Aeroplan, Jazz units Monday 12 February 2007 Aviation (ACE.B) – $35.56 – Revving Up Its Engines For Value Maximization Wednesday 31 January 2007 globe ACE aims high with spinoff of repair unit Thursday 11 January 2007 Air Canada (AC.B) – $17.75 – Initiation of Coverage
click for W-N ARCHIVE back TO Sep 29, 2001 available on requesk Please see Archives 2001 to September 30 | Iata W-N Aviation files
See CBC Indepth: Air Canada
It would appear that April is the cruellest month - at least for Air Canada passengers (though pets have won out - after a year!). And this used to be consistently voted one of the top airlines by passengers.
New fee to help offset oil costs. Other major carrier also bumped the price of checking in a second piece of luggage
Read my lips. On its Q4/07 Conference Call, ACE CEO Robert Milton said, "We have now been approached by private equity,
by pension funds, I have to tell you that, in my view, as I watch the U.S. airlines scurrying around to merge, anybody that
actually ties up with Air Canada gets a unique piece of geography relative to the way the U.S. guys would split it up. So there
has been dialogue with the U.S. space looking to change and I don't think it's inconceivable that Air Canada could be part of it
and I think it would make a lot of sense for a U.S. airline to look to Air Canada." Given the Delta (DAL)/Northwest (NWA)
deal the prior night, we find it hard to believe that ACE would not discuss a U.S. carrier - Air Canada is 13th largest airline in
the world. ACE is a known seller of its 75% stake in Air Canada. However, government legislation prevents foreign ownership
greater than 25%. This deal may start rumours or spark interest that a U.S. carrier would team up with Canadian private equity
fund to buy Air Canada from ACE. This could be an ideal exit for ACE, as it has continually stated that its first choice would be
to sell its stake in Air Canada. The weakness in the Air Canada stock could also make it appealing to any such investor.
Expecting first-quarter results on or around May 9
RBC Capital Markets maintains a "outperform", target price cut to $12.00
ACE in hand. As a result of ACE Aviation Holdings agreeing to sell 20.4 million units of Aeroplan Income Fund (AER.UN)
to a group of underwriters, it was announced last week that ACE would be removed from the S&P/TSX 60, 60 Capped and Equity 60 indices and placed in the S&P/TSX Completion and Equity Completion indices. Aeroplan will replace ACE Aviation
Holdings in the S&P/TSX 60 and 60 Capped indices and will be removed from the S&P/TSX Completion index. The S&P/TSX
MidCap Index was renamed the S&P/TSX Completion Index and is comprised of the constituents of the S&P/TSX Composite
Index that are not in the S&P/TSX 60 Index. The transaction is effective after the close of trading on Friday, April 18, 2008.
This announcement may put further pressure on ACE's stock price, as some Canadian fund managers will be forced to rebalance
their portfolios and sell some ACE. While ACE hit a 52-week low yesterday, Tom Varesh, Canaccord Adams Transportation
Analyst, believes Air Canada is expected to post strong Q1/08 results and that the shares of ACE are trading substantially below
their NAV. With management still determined to windup the holding company in the coming months, we expect substantially
more value to be created for ACE shareholders.
Air Canada's policy for no pets won't fly, agency rules
In its decision, the agency called Air Canada's policy "unreasonable" because it favours the air carrier while exposing pets to harm.
Pets cleared for takeoff on Air Canada
Air Canada must allow passengers to take along their pets on its domestic and international flights,
The airline changed its policy last summer so passengers could no longer transport cats, dogs and other small animals on planes as checked baggage on the grounds that more space was needed to accommodate luggage. Instead, passengers were told their pets would have to travel separately aboard cargo planes.
In its decision, the agency called Air Canada's policy "unreasonable" because it favours the air carrier, while exposing pets to harm.
The airline has until May 5 to comply with the ruling and allow animals and their crates, with a combined weight of less than 31 kilograms, to be transported on all flights. © The Gazette (Montreal) 2008
Air Canada has just made you an offer you can refuse.
You've got to hand it to the ingenuity of the public-relations industry. Take Air Canada's recent problem: Passengers were furious with the airline because too many of them were left stranded helplessly at airports during last month's massive snowstorm.
Air Canada is ready to go the extra mile for travellers inconvenienced by delays or travel disruptions..
TD Newcrest maintains "buy", 12-month target price is cut to $30.00
Closes off 2007 with a record quarter
RBC Capital Markets maintains a "outperform", target price cut to $16.00
TD Newcrest maintains a "buy", 12-month target price is $16.50
ACE Aviation Holdings (ACE.B) was up after its chief executive said the
majority owner of Air Canada (AC.B) has been approached about
possible U.S. mergers. Also on Friday, ACE reported lower fourth quarter
operating profit.
ACE.A, ACE.B, AC.A and AC.B – an episode of Lost is less confusing. The parent company of Air Canada (AC.B) reported
big boost in 2007 net income as it rose to $1.4 billion for 2007 on gains related to the spin-off of its maintenance division as
well as rights offerings. The earnings amounted to $11.44 per diluted share and compared to $408 million, or $3.80 per share, a
year earlier. Net-net, after adjusting for non-operating items, the company posted EPS of $0.02, operating income of $46
million. The company’s EBITDAR was $248 million, including $274 million of EBITDAR at Air Canada. The company
reported gains on the sale of assets (including ACTS, Aeroplan (AER.UN) and Jazz (JAZ.UN)) of $1,339 million. But the
uncertainty remains as to how this will all get wound up. It appears that the end of June is still the target, but uncertain financial
market conditions could force a delay to that. And what will the company do with its excess cash, is a large cash distribution in
the works, or is a significant issuer bid and/or a buy-in of Air Canada shares? ACE owns 75% of
Air Canada's parent company says its depressed stock could lead to privatization or partnership with a U.S. airline. The president of ACE Aviation Holdings Inc., Robert Milton, says the holding company has engaged in talks with private equity and pension funds as well as American carriers, but didn't name the parties. ACE owns 75 per cent of Air Canada. ACE had been hoping to unload its stakes in Air Canada, Jazz Income Fund, Aeroplan Income Fund and the service company ACTS by the second quarter of the year. But Mr. Milton explains that the current downturn in airline equities have made that eventuality doubtful. In 1999, Toronto-based Onex Corp. offered $5.7 billion to take over and to merge Air Canada with the now defunct Canadian Airlines.
Air Canada seems to be on the right course as it tries to fly through record-high fuel prices and the looming threat of ...
Credit Suisse maintains "neutral", 12-month target price is $30.00
Love that Jazz? Well, somebody does. Yesterday, this aviation holding company announced that it has sold a little more than
half of its holdings in Jazz Air (JAZ.UN) on an “exempt trade basis” to West Face Capital and Sunrise Partners. The deal is
expected to close on or about January 24, 2008. Given the prior day’s closing price for Jazz of C$7.21, closing the deal at
C$7.45 is a positive for ACE shareholders, although the last secondary offering completed in October 2007 was done at C$7.75.
With this, ACE is expected to realize net proceeds of C$96.85 million. Assuming the deal closes, ACE now holds 9.5% of Jazz,
20.1% of Aeroplan (AER.UN), 23% of ACTS and 75% of Air Canada (AC.B). Despite market conditions, it appears clear
that the ACE wind-up is moving ahead as planned. ACE will add the proceeds to its cash balance, which eventually will be used
to wind up ACE Aviation Holdings by the end of Q2/08. Further divestitures of the rest of its holdings will increase ACE’s cash
balances to a level that should be adequate to facilitate the wind-up and to meet its final tax obligations.
Dutch auction buying back on track
BMO Capital Markets maintains "market perform", 12-month target price is cut to $29.00
Credit Suisse maintains a "neutral", target price raised to $30.00
RBC Capital Markets maintains "outperform", 12-month target price is cut to $38.00
Attention all investor, the end is near...ACE’s Dutch auction has expired, 49.9 million shares were tendered at a price of $30.00
- total cost to ACE of $1.498 billion. There are now about 68.9 million shares outstanding on a fully-diluted basis (not including
or converting any of the Convertible Notes). Next Catalyst? The focus will now be on ACE’s “final act”, as it divests itself of its
various holdings and winds itself up by the end of Q2/08. Over the next five months or so, ACE will divest itself of its 20%
holdings in Aeroplan (AER.UN) and Jazz Air (JAZ.UN) and potentially, divest itself of its holdings in Air Canada (AC.B)
(75% stake) and ACTS (23% stake). While the timing of divestitures is not known, June 6, 2008 represents the first “call” date
for its tightly held Convertible Notes. We believe that all of the outstanding Convertible Notes will be “called” by ACE at that
time and if it still holds stakes in Aeroplan, Jazz Air, Air Canada and ACTS, then divestitures of some or all of those holdings
will take place shortly after this date, thereby marking the end of ACE Aviation Holdings.
Outperform, Above Average Risk, Price Target: $38.00 (prev. $41.00)
ACE completed its $1.5 billion Dutch Auction, buying back 50 million shares at $30 each. The buyback represented 38% of ACE's fully diluted shares outstanding. No convertible preferred shares of ACE were deposited on an as converted basis to the offer. The majority of these convertible preferred shares are owned by Cerberus. RBC CM expects ACE to shortly announce the sale of its remaining 20% stakes in Aeroplan (40MM units) and Jazz (25MM units). ACE could raise approximately $1.1 billion. This could be followed by another buyback of ACE shares. It is possible that ACE may then consider merging with Air Canada through a share swap (or Air Canada absorbing ACE). The remaining company would in effect be Air Canada. RBC CM expects the wind-up to be completed by June.
Outperform, Above Average Risk, Price Target: $17.00 (prev. $22.00)
US airlines have been very volatile as investors weigh the risks of being in a very economically sensitive group against the risk of not being in a sector poised for consolidation. This volatility has crossed the border. To offset rising fuel costs, Air Canada and WestJet have been raising fares. RBC CM believes domestic and transborder yields may have risen 3% to 5% between December ’06 and December ’07, while for the rest of the world a more modest 2%. Airline earnings are very sensitive to rates of economic growth and fuel prices. In Canada, the bulk of annual earnings are made in Q2 and Q3. RBC predicts the Canadian economy will grow by 2.1% in 2008. Domestic traffic has historically grown at 1.5x GDP. Rising oil prices combined with a pull
back in the C$ and a weakening US economy are concerns.
“Well, I hope this experience hasn’t put you off flying. Statistically speaking, it’s still the safest way to travel.” – Superman
(after saving a plane from crashing). ACE Aviation’s modified Dutch auction that is set to expire at 5:00 pm ET on January 10,
2008, is aiming to buy back about 40% of the company’s outstanding shares. However, those that tender to the Dutch auction
will receive cash that is considered to be entirely a dividend. This means that U.S. investors are subject to a 5-15% withholding
tax, while other foreign investors are subject to a 25% withholding tax. If the auction clears at C$30.00 as we expect, then U.S.
investors are subject to a C$1.50-4.50 withholding tax. This withholding tax makes tendering to the Dutch auction unattractive
for U.S. investors, especially those who have recently purchased the stock. While some investors may eventually get some or all
of the withholding tax back after they file their tax return, because the Dutch auction closes on January 10, 2008, U.S. investors
would have to wait over a year to receive any refund of the withholding tax. Given that only 20% of the stock is in Canadian
hands and that the withholding tax seems to be a deterrent for U.S. investors (and other foreign investors) to tender, it would
seem that the best-case scenario would see all of the Canadian shareholders tendering to the Dutch auction, with ACE spending
half (C$750 million) of the C$1.5 billion set aside for the Dutch auction.
ACE Aviation announced an issuer bid to purchase for cancellation of ACE shares
Canaccord Adams upgrades to "buy", 12-month target price is cut to $31.00
Outperform, Above Average Risk, Price Target: $22.00
ACE Aviation announced a $1.5 billion Dutch Auction to buyback ACE shares. The buyback does not have any direct impact on Air Canada, although it does signal that ACE is serious about eliminating its holding company status. There are three possible ways for ACE to deal with the 75 million shares of Air Canada it owns, as follows: 1) Sell into the market – which may prove difficult for it to realize a fair value; 2) Buyback the float of 25MM shares using cash at ACE and in effect leave ACE as Air Canada; or 3) Sell all of Air Canada to an industry or financial buyer. It should be noted that investors’ lack of enthusiasm for airline stocks means that the public markets may not be willing to recognize how undervalued Air Canada stocks are. RBC CM maintains its Outperform, Above Average Risk rating and price target of $22.00 for Air Canada
ACTION LIST BUY (Unchanged);Target: C$39.00 ? (Prior: C$38.00)
ACE Announces $1.5-Billion Substantial Issuer Bid
Thousands of air travellers were inconvenienced on Friday morning by computer troubles at Air Canada, as flights were delayed between 30 minutes to an hour. The problem was caused by broken links between the airline's main reservation computer at Pearson International Airport and those in the different airports across the country. The director general at Pearson, John Segaert, explained that the facility was temporarily unable to print boarding passes. Flights were running normally by afternoon.
In line Q3, but profit concerns for 2008
Credit Suisse rates a "underperform", target price cut to $11.25
Third-quarter results meet expectations
Credit Suisse rates a "neutral", target price is $28.00
The interests in Air Canada, its regional affiliate Jazz Air , loyalty program Aeroplan and aircraft maintenance firm ACTS are worth about C$2.4 billion ($2.6 billion), said ACE, which was created as part of Air Canada's emergence from bankruptcy protection in late 2004.
..In the third quarter, Montreal-based ACE earned C$224 million, or C$1.84 a share, up from a year-earlier C$103 million, or 95 Canadian cents a share. It said the numbers are not directly comparable as it stopped consolidating the results of Aeroplan and Jazz earlier this year.
Third-quarter results coming this Friday
Canaccord Adams downgrades to "hold", target price is $32.50
Air Canada says it expects to start receiving deliveries of the Boeing Co.'s 787 Dreamliner airliner on time despite the manufacturers announcement on Wednesday that the first deliveries will be delayed by six months. The announcement concerns 15 of its 50 Dreamliner customers, the identities of which weren't divulged. Air Canada has ordered 37 Dreamliners, which are supposed to start arriving in 2010 and the company says Boeing hasn't notified it of any delay. The new aircraft's design improves fuel efficiency by 30 per cent, a major consideration for airlines when the price of a barrel of oil is around US$80. Since Boeing put the 787 on the market in 2004, it has sold 710 of them worth US$120 billion.
Planning to wind up holding company structure
Canaccord Adams maintains "buy", 12-month target price is raised to $32.50
Air Canada recently announced that its flights to India would
be cancelled and aircraft redeployed to China. Today, an Indian
private-sector airline, ...
Air Canada has reported a decline of profit of 22 per cent which it attributes to the acquisition of new aircraft and the maintenance of old ones that are being phased out. CEO Montie Brewer says the shift to the new planes will cause profits to rise dramatically in coming months. Mr. Brewer says that while fleet renewal entails considerable costs for training, the airline expects the new aircraft to lead to profitability in the second half. Air Canada has received seven of 17 Boeing 777s ordered and 30 of 45 Embraer E190s. The planes offer increased capacity and lower operational costs.
Quarterly results no longer include Jazz after the recent spinoff arranged by Air Canada parent
Air Canada has been ranked as the best airline in North America in the world's largest survey of air travellers. The independent British-based research firm Skytrax surveyed more than 14 million travellers from more than 90 countries between August 2006 and June 2007. The survey was based on different aspects of passenger satisfaction for each airline's product and service standards. It's the second time in three years that Air Canada has placed first among North American carriers.
Family pets still have time to collect Air Canada air miles, at least on international flights.
The suspension affects flights between Canada and the U.S. as well as other international flights to and from Canada. Pets will still not be allowed on Air Canada domestic flights starting July 15 since the Canadian Transportation Agency does not have jurisdiction to take similar action with regards to domestic routes. Pets will have to travel through its cargo division.
03/07/07 Talking Management - Taking charge with Robert Milton
Air Canada will resume year-round direct flights between Toronto and Charlottetown starting in December. The flights will take place four days a week. Air Canada stopped the flights except in the off-season because of a dispute with the island's government. The airline claimed that it had offered money to its competitor WestJet to begin service.
The president of ACE Aviation, Air Canada's parent firm, says the airline's maintenance division will be sold in several weeks. But Robert Milton says ACE will keep a "meaningful" stake in Air Canada Technical Services. Mr. Milton declined to reveal the identity of interested investors or to specify how big a stake that ACE would retain.
ACE Aviation Holdings Inc. has agreed to sell off a 70-per-cent stake in its aircraft maintenance, repair and overhaul subsidiary...
The
National fronts while CTV
News, the
Globe, the
Star, the
Citizen and the
Post go inside with Air Canada’s decision to add cats and dogs to
their no-fly list. As of July 15, Air Canada will no longer transport
animals on domestic passenger flights. A motion to expand the policy to US
and international passenger flights is now pending approval from the
Canadian Transportation Agency. This decision is explained by the
Montreal-based airline as merely a pragmatic effort to fit more luggage
onboard. “It comes down to carrying bags for the vast majority of
our customers or carrying pets for a small number of our
passengers,” says Air Canada spokesperson Peter Fitzpatrick in the
Star. Fitzpatrick also mentions that the policy isn’t unusual,
citing British Airways and Cathay Pacific as airlines that share the pet
ban. The National suggests that the decision may result from different
motivations, citing a case in 2004 when a British Columbia family's dog
died of carbon monoxide poisoning while travelling in an Air Canada cargo
hold. In fact, the case didn’t come to much: the CTA exonerated Air
Canada on the grounds that airlines are not responsible for the health of
pets. Accordingly, Fitzpatrick denied that the decision was related to the
case. Canada's other major carrier, WestJet, maintains its pet-friendly
policies and will continue to fly animals across Canada.
$2 billion Plan of Arrangement to surface shareholder value (announced August 11, 2006) has been successfully completed. RBC CM estimate a potential 46% return from today's price as they believe ACE will be broken up within the next 2 years and investors stand to gain from the elimination of the discount (currently 17% or $5.25/share) and the upside in our estimated oneyear out targets for its parts (approx. $6.90/share). The target price has been decreased from $43 to $38 as a result of the May 24thspecial distribution of Aeroplan and Jazz units. Target of $38 is based on an undiscounted sum-of-the-parts approach using 1) an one-year target of $21/share for Air Canada; 2) a one-year target of $24/unit for Aeroplan; 3) an one-year target of $9.75/unit for Jazz; and 4) the projected cash plus our estimated value of ACTS and Air Canada Vacations.
Both Air Canada and its chief rival WestJet report record load factors for the month of May. Air Canada's figure was 83.8 per cent, and WestJet's slightly more than 80 per cent. WestJet says its latest figure is 3.1 per cent higher than the previous record and was the fifth straight quarter it has seen the load factor measure improve. more
Shortly after landing at Toronto's Pearson Airport, the main landing gear collapsed on a 50-seat Bombardier CRJ-100, Air Canada Jazz confirmed Sunday.
Loss trimmed compared to the $126-million lost a year earlier
Loss trimmed compared to the $126-million lost a year earlier
Outperform, Above Average Risk – Price Target: $54.00
ACE announced that it will distribute approximately $603 million of Aeroplan (AER.UN) and Jazz (JAZ.UN) units to ACE shareholders. Based on the March 1st closing price, the total distribution is worth $5.29 per ACE share. Shareholders will receive 0.177 units of Aeroplan per ACE share and 0.219 units of Jazz. ACE’s strategy of distributing assets that have been discounted in the holding company structure directly to shareholders is proceeding as planned (and perhaps ahead of schedule). RBC CM expects ACE to distribute the proceeds from the sale of its maintenance division this summer.
CEO Balsillie resigns as chairman of RIM
CEO Jim Balsillie is resigning as chairman of BlackBerry maker Research In Motion (TSX:RIM) as the firm reports over US$250 million in past stock option accounting errors after an extensive review.
ACE Aviation Holdings Inc. has announced a $603-million distribution of stock in Aeroplan Income Fund and Jazz Air Income Fund on March 14.
Outperform, Above Average Risk – Price Target: $54.00
ACE’s publicly traded component companies reported solid Q4 results. (See Air Canada, Jazz Air and Aeroplan notes for full results.) On Friday’s conference call, ACE’s CFO said that the tax bill for dissolving ACE would be $200 million or substantially lower. RBC CM is interpreting this as an indication that the collapse of the holding company is being seriously considered and that the timing might not be that far off. RBC CM has maintained its price target of $54 and Outperform, Above Average Risk rating for ACE.
Shops larger piece to private buyers
Outperform, Above Average Risk – Price Target: $29.00Mbr>
RBC CM has initiated coverage of Air Canada with an Outperform rating. Air Canada is leading the North American airline industry with its innovative pricing model, technology use to reduce costs, and the introduction of a better product at a lower cost. The company’s strategy of increasing capacity while reducing costs is expected to increase EBITDAR by almost 40% in 2007. RBC CM believes that if Air Canada can achieve this earnings growth and also trade in a range comparable to U.S. and European carriers the shares could trade at $29.00 in one y ear. Change to the fuel price will also affect the target price, with every US$1 per barrel drop in jet fuel increasing the 2008E EBITDAR by $29 million, which increases the target price by $1.50.
2006
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