T-ACE.B Air Canada Chart by David T. Nicholson's Wednesday-Night.com

many notes below from Andrew L. de Courcy-Ireland, CIM, FCSI
Portfolio Manager CANACCORD CAPITALTel: (514) 844-5520

2009

Friday 03 July 2009 TORONTO: AIR CANADA UNION REJECTS WAGE FREEZE
Members of the union representing Air Canada's mechanics and technical staff have voted by 50.8 per cent to reject a management proposal to freeze their salaries until March 2011. The leadership of the International Association of Machinists and Aerospace Workers had recommended that members accept the proposal. The airline is seeking to borrow $600 million to avoid a second bankrupcty in six years but lenders want assurances that it can reduce its $2.9-billion pension fund deficit. The president of one of the union's locals told The Globe and Mail newspaper that Air Canada should worry about a strike or bankruptcy during next year's Winter Olympics in Vancouver. Air Canada is the "Official Airline" of the Games.

Thursday 02 July 2009 A ship carrying 194 boatpeople has arrived off Australia's northeastern shore and is the biggest load of such migrants in eight years. Liberal Prime Minister Kevin Rudd defended what he called his "hardline and sensible" approach to refugee policy. His political opponents accuse him of wrongheadedly abandoning a previous Conservative government policy of locking up boatpeople for years on end. Eight-hundred-and-twenty-five boatpeople have arrived in Australia this year, compared with 179 in all of last year. Officials in Indonesia and Malaysia have warned that as many as 10,000 more are waiting for a chance to try to reach Australia.

Wednesday 24 June 2009 MONTREAL: AIR CANADA, FLIGHT ATTENDANTS AGREE ON CONTRACT
Air Canada says it has reached a tentative 21-month contract with the Canadian Union of Public Employees, which represents its flight attendants. The contract provides for no salary increases and a 21-month moratorium on pension payments. The flight attendants were the last of five groups of unionized employees to agree to a "cost-neutral" contract settlement. CEO Calin Rovinescu says the deals will now enable Air Canada to obtain federal approval for the pension moratoriums and to raise $600 million in new financing to avoid its second bankruptcy in six years.

Saturday 20 June 2009 TORONTO: AIR CANADA UNION OKAYS CONTRACT
The Canadian Auto Workers union says its members have voted to ratify a new 21-month contract with Air Canada that includes a temporary moratorium on pension funding. The CAW represents 4,500 customer sales and service agents across the country. Air Canada has now reached tentative deals with four of its unions, but not with its flight attendants, who are members of the Canadian Union of Public Employees. Labour and pension agreements are key to Air Canada's securing of new financing needed to avoid a second bankruptcy in six years.

Wednesday 17 June 2009 TORONTO: AIR CANADA REACHING RESTRUCTURING ACCORD
Canada's biggest airline, Air Canada, has reached tentative agreements with the last of its five large unions on a broad restructuring plan. The deal involves the two unions representing Air Canada's 10,000 pilots and flight attendants. The agreement with Air Canada Pilots Association and CUPE includes a 21-month holiday from pension funding, equity restructuring and a collective agreement on wages and working conditions. Air Canada is struggling to survive under a nearly $3-billion pension shortfall. The news of the labour pacts encouraged investors and caused Air Canada stock to rise 18 cents to $1.67 in morning trading in Toronto.

Tuesday 26 May 2009 MONTREAL: AIR CANADA UPBEAT ON INSOLVENCY AVOIDANCE>br> Air Canada says it has taken a step forward in its effort to avoid another bankruptcy. The airline says it has agreed with one of its credit processors on the amount of cash it is required to hold. The amount will be lowered by $100 million to $800 million. At the end of March, Air Canada had a cash balance of more than $1 billion, after it lost $400 million in the first quarter. The company is also trying to reach an agreement with its unions for a 21-month moratorium on $650 million in pension payments. The airline pension fund is underfunded by $2.9 billion. Air Canada's unions, meanwhile, may be softening their opposition to a moratorium on pension payments. After rejecting a blanket pension contribution moratorium that would have cost current employees one year of service, union leaders said Monday a revised proposal is being viewed more positively. Several members of the union's bargaining committee are set to meet in Vancouver to discuss Air Canada's request, including its desire for labour peace during contract negotiations.

Sunday 17 May 2009 OTTAWA: AIR CANADA POLICY IS REJECTED
The Canadian Transport Agency has ruled against an Air Canada policy. Air Canada had said that it was not responsible for lost of damaged luggage aboard its flights. The airline has 90 days to change the policy so that passengers can demand compensation.

Sunday 10 May 2009 MONTREAL: AIR CANADA LOSS WIDENS
Canada's biggest airline reports a loss of $400 million in the first quarter, a worsening by 39 per cent of its $288-million loss a year earlier. CEO Calin Rovinescu, who returned to Air Canada as CEO five weeks ago, describes the company's economic environment as "very ugly." Mr. Rovinescu led Air Canada's restructuring six years ago. During his brief present tenure, he has sought relief on pension payments, tried to better the airline's slender liquidity and sought to adjust its uncompetitive cost structure. The CEO says he hopes to achieve those efforts without resorting to a second bankruptcy protection, an outcome which some analysts consider inevitable. After the annual shareholders meeting, Mr. Rovinescu told the Canadian Press news agency that Air Canada is looking to cut at least $250 million in costs and raise more cash but doesn't foresee the need for massive layoffs or a bankruptcy protection filing to help it survive until the recession ends.

Thursday 07 May 2009 MONTREAL: AIR CANADA IN PENSION STANDOFF
Air Canada and the Canadian Auto Workers union which represents 4,500 Air Canada ticket counter agents and call-centre employees are at loggerheads over the airline's underfunded pension funds. Air Canada has requested the CAW agree to a moratorium on payments into the plans, which are hugely underfunded. The airline says it intends to maintain its current defined benefit plans for its five unions, but wants to take unstated steps to rectify their financial operation. The union, however, says the company must fully fund the plans so that workers don't have to bear the brunt of the airline's financial troubles.

Friday 03 April 2009 (ACE.B : TSX : $5.48)
New Air Canada CEO signals push to surface value in ACE's controlling position
RBC Capital Markets maintains "outperform", 12-month target price is reduced to $8.00

Wednesday 01 April 2009 (AC.B : TSX : $0.89)Out with the old, in with the old
Raymond James continues "market perform", no target price reported

MONTREAL: FEARS ABOUT AIR CANADA GROW
Federal Industry Minister Tony Clement is taking a wait-and-see attitude amid fears Air Canada is preparing to file for bankruptcy protection for a second time. Mr. Clement says the government has not received any special requests for aid from the airline. Speculation began after the company announced late Monday that Montie Brewer had resigned as president and been replaced by former Air Canada executive Calin Rovinescu. He played a key role in the airline's court-supervised restructuring in 2003-2004. Industry observers say Mr. Rovinescu's appointment signals the airline is preparing dramatic changes to tackle its debts and mounting pension liabilities. His selection is expected to rile the airline's unions, who made his departure as chief restructuring officer in 2004 a condition of accepting concessions. Labour talks begin in June.

Monday 30 March 2009 (ACE.B : TSX : $5.75)
The windup of ACE is now off life support
Canaccord Adams upgrades to a "buy", raises target to $7.25

Air Canada (AC.A) announced that Montie Brewer has resigned as president and chief executive and will be succeeded by Calin Rovinescu, a former senior executive with the airline.

Friday 20 March 2009 TORONTO: CORPORATIONS WANT PENSION FUND BREAK
Seven major corporations are lobbying the federal government for pension fund relief. Companies including Air Canada, Canadian Pacific Railway Ltd. and Bell Canada want the government to ease what they see as onerous rules. Air Canada CEO Montie Brewer has told The Globe and Mail newspaper that the current regulations are making a difficult economic situation even worse by forcing companies to make huge increases in pension fund contributions. Air Canada has a pension solvency shortfall of $3.2 billion. The government began a series of public consultations on federally regulated pension funds last Friday which will conclude in Winnipeg, MA, on April 17.

Thursday 12 March 2009 ACE.B : TSX : $5.62
Provided weaker than expected unit revenue guidance for Q1
TD Newcrest maintains a "buy", lowers target to $9.50

Wednesday 18 February 2009 (ACE.B : TSX : $7.02)
Q4/08 results: disappointing, offered to buy remaining convertible preferred shares, wrote down investment in Aveos
RBC Capital Markets maintains "outperform", 12-month target price is reduced to $11.00

Saturday 14 February 2009 Air Canada says volatility in both fuel prices and foreign exchange rates drove 2008 financial results into the red for both the fourth-quarter and the full year. The airline reports a fourth-quarter loss of $727-million, reversing year-earlier profits of $35-million. Soaring fuel prices took a toll on Air Canada's full-year financial results as well, prompting the company to report a loss of $1.03-billion, reversing year-earlier profits of $429-million.

Friday 30 January 2009 TORONTO: CONTRACT TROUBLES AT AIR CANADA
Canada's largest airline appears headed for labour problems. Five-thousand customer service and sales agents at Air Canada have rejected a tentative contract reached two weeks ago between the airline and their union. The current collective agreement remains in effect until the end of May, so no immediate impact on service is expected.

Monday 26 January 2009 TORONTO: LABOUR UNION CRITICIZES AIR CANADA
The labour union that represents 5,700 flight attendants at Air Canada is criticizing the airline for its latest round of job cuts. The airline announced that it will cut another 345 jobs within two months, mostly among its flight attendants. As passenger demand declines, Air Canada is also trimming the number of flights on some routes, and using smaller aircraft on others. Paul Moist, president of the Canadian Union of Public Employees, accuses Air Canada of engaging in bullying tactics with only five months before its contract expires. The airline eliminated 2,000 jobs in June because of high fuel costs, but Mr. Moist says that the price of oil has since fallen dramatically. He says that his union will respond to these bullying tactics. Air Canada employs about 26,600 workers.

Wednesday 14 January 2009 ACE.B : TSX : $8.40)What's good for Air Canada is great for ACE
RBC Capital Markets maintains an "outperform", raises target to $15.00 from $12.75

Monday 12 January 2009 ACE Aviation Holdings (ACE.B : TSX : $8.74)
Air Canada reported December load factor up 290 bps to 81.7%
TD Newcrest maintains a "buy", raises target to $15.00 from $11.00

2008

Wednesday 24 December 2008 WINNIPEG: AIR CANADA REFUSES TO RESCIND BASE CLOSING
The Manitoba government says Air Canada refuses to reverse its decision to close a flight attendants base in Winnipeg, despite the government's willingness to offer financial incentives to do so. Premier Gary Doer says the government is willing to reduce the provincial tax on aviation fuel for passenger flights or offer other aid, but that the airline has proved obdurate. Air Canada announced last summer that it would close the flight attendant bases in Winnipeg and Halifax, NS. The government is continuing with its legal challenge to the decision, arguing that the airline is required by law to maintain operations in Winnipeg under a federal law passed when Air Canada was privatized.

Friday 12 December 2008 (ACE.B : TSX : $6.75)Announced wind-up offer
RBC Capital Markets continues "outperform", 12-month target price is raised to $12.75

Friday 14 November 2008 (ACE.B : TSX : $3.61)
Narrowing in on its wind-up strategy
BMO Nesbitt Burns maintains a "market perform", lowers target to $5.50
Canaccord Adams maintains a "speculative buy", lowers target to $6.25 from $15.50

Saturday 08 November 2008 MONTREAL: FUEL PRICES PLUNGE AIR CANADA INTO THE RED
Air Canada reports a loss of $132 million in the third quarter. The loss is due chiefly to a 49-per cent increase in the price of fuel, an item that cost $1.1 billion in the quarter, $348 million more than a year earlier. The carrier also recorded a $273-million profit in the third quarter of 2007.

Friday 31 October 2008 WINNIPEG: AIR CANADA SUED OVER CUTS
The Manitoba government says it will sue Air Canada over job cuts in Winnipeg. Last summer, the country's biggest airline announced it was closing flight attendant bases in Winnipeg, Halifax and other cities to cut costs and compensate for rising fuel prices. The government says it will ask Court of Queen's Bench to declare the closure illegal on the grounds that when Air Canada was privatized in 1988, it was required by law to maintain operational centres in Winnipeg, Montreal and Mississauga.

Thursday 25 September 2008 (AC.B : TSX : $4.21) Canada's high-beta airline
Scotia Capital initiates a "sector outperform", target of $8.25

Air Canada cans second-checked bag charge

Saturday 13 September 2008 Air Canada's Fuel proof supply system
Airline's move to import fuel makes it the envy of an industry held hostage by prices and shortages

Friday 12 September 2008 MONTREAL: AIR CANADA TO OFFER INTERNET SERVICE
Air Canada says it will offer passengers on flights over the U.S. to the U.S. west coast Internet service. The airline will partner with the American firm Aircell to allow passengers access to Aircell's Wi-Fi service, enabling them to surf the Internet, to check e-mail and to watch video on their laptops or personal electronics devices. Air Canada says the service will cost $12.95 per passenger, a fee comparable to what hotels charge. The broadband Internet service functions from a network of cell towers in the U.S.

Thursday 11 September 2008 MONTREAL: AIR CANADA ARBITRATION DECISION DUE
An federally-named arbitrator was expected to conclude his hearings concerning an adjustment program for as many as 2,000 Air Canada employees who will lose their jobs on Nov. 1. The airline is reducing its capacity by seven per cent to cope with soaring fuel costs. CEO Montie Brewer says the airline has reached separation agreements with all but one of the labour unions involved. The Canadian Union of Public Employees, which represents 600 flight attendants affected, says it hopes Air Canada will offer them a severance package, although this is not specified in the collective agreement.

Saturday 23 August 2008 Air Canada's Jazz tosses life jackets
Jazz airlines, Air Canada's regional affiliate, recently removed life vests from all of its planes – including those that fly over water – to reduce fuel consumption and save money.

Wednesday 20 August 2008 OTTAWA: ARBITRATOR NAMED TO OVERSEE AIR CANADA LAYOFFS
Federal Labour Minister Jean-Pierre Blackburn has named an arbitrator to supervise the negotiations between Air Canada and its labour unions over the administration of planned layoffs. The nomination was at the request of both sides. The arbitrator will set the terms of the adjustment program for the 2,000 jobs that are to be eliminated. Last month, the minister rejected Air Canada's request for a waiver of the requirement in the Canada Labour Code to create a joint committee to try to minimize the impact of the layoffs.

Wednesday 13 August 2008 ACE Aviation Holdings (ACE.B : TSX : $11.19)
Q2/08 review; discount remains
TD Newcrest maintains "buy", 12-month target price is $24.00

Tuesday 12 August 2008 ACE Aviation Holdings (ACE.B : TSX : $10.94)
No plan at this time to do another Dutch Auction
RBC Capital Markets maintains "outperform", 12-month target price decreased to $20.00

Tuesday 12 August 2008 Air Canada (AC.B : TSX : $5.70)
Operating income of $7mln and EBITDAR of $249mln
Raymond James maintains "market perform", 6-12-month target price is under review

Monday 11 August 2008 (ACE.B) - $10.95 – Winding-Up is Hard to Do
Outperform, Above Average Risk; Price Target: $20.00 (prev: $21.00)
ACE stated in its Q2 release that "We are now actively exploring options for our 75 percent interest in Air Canada to maximize value for our shareholders." When asked what options are possible, ACE's CFO Brian Dunne replied a secondary sale, sale to investors including private equity, or an amalgamation with Air Canada using cash or shares. Management said it expects to narrow its choices over the next 2 or 3 months. CEO Robert Milton noted that things are changing fast and that the price of oil may influence what happens to ACE's Air Canada stake. RBC CM notes that a big complication is Part 6 tax that would have to be paid if the ACE convertible preferreds do not convert. Further distributions to the convertible preferreds or the redemption of the preferreds would attract Part 6 tax at 50% (cv pfd's fully accreted value was $302MM at June 30 and the tax if redeemed today would be approx. $151MM). RBC CM believes the only way to not pay this tax is to have cv pfds convert, which depends on AC share price rising (and potentially RBC CM thinks sweetening the conversion terms). On ACTS maintenance division ACE owns 27.8% with a value of $101MM (based on value of original transaction) and ACE is free to sell it in 2009. On returning cash to ACE shareholders, there is no plan at this time to do another Dutch Auction buyback.

Sunday 10 August 2008 MONTREAL: FUEL COSTS REDUCE AIR CANADA PROFIT
Air Canada, the country's biggest airline, says its second-quarter profit was only $7 million because of huge fuel costs. The airline says it spent $212 million more on fuel in the second quarter than in the same period of the previous year. The company says that even through fare increases, fuel surcharges and other fees, it couldn't completely offset fuel costs. CEO Monty Brewer says the customers will eventually have to absorb the rising fuel costs.

Tuesday 29 July 2008 WINNIPEG: AIR CANADA ATTENDANTS PROTEST
Air Canada flight attendants staged rallies in several cities to protest against the announced layoffs of 600 of them. More than 300 people marched down Portage Avenue in Winnipeg, MA, and 150 people rallied in front of Halifax city hall. The flight attendant bases in both cities are to be closed on Nov. 1. On Friday, federal Labour Minister Jean-Pierre Blackburn denied a request by Air Canada for an exemption to the requirement that it set up a joint committee with the Canadian Union of Public Employees to seek ways to alleviate the effect of the layoffs. The union will meet with the employer on Thursday and Friday at a location still to be determined.

Monday 28 July 2008 Air Canada* (AC.A : TSX : $5.00)
Net Change: -0.15, % Change: -2.91%, Volume: 289,840 ACE Continental - Luggage Detective. Air Canada on Friday announced that it has reached an agreement in principle with Continental Airlines (CAL), the fourth-largest carrier in the United States, to provide customers broader network and cooperation by the two carriers. Air Canada and Continental intend, subject to obtaining regulatory approvals, to offer customers coordinated services and enhanced product offerings through codeshare, frequent flyer and lounge access agreements. Through Continental's hubs in Newark and Cleveland, Air Canada will offer more options to the eastern United States, and through Continental's Houston hub, greater access to the southern United States, Mexico and Central America. This arrangement complements Air Canada's existing North American network with its Star Alliance partner, United Airlines (UAUA). In June, Continental announced that it also plans to join Star Alliance. Tom O. Varesh, Canaccord Adams Transportation Analyst, still believes there is a possible relative trade with Air Canada, given that US Airlines have dramatically outperformed Air Canada in the past few weeks. Air Canada's stock is off by over 40%, while the S&P 500 Airlines Index is up over 10%. While Air Canada shares were likely held up through much of June as a result of the ACE Aviation Holdings (ACE.B) share buyback. The relative weakness seems strange given that Air Canada is: a) in just as strong a financial position as its U.S.
counterparts; b) has a more newer and more fuel efficient fleet; and c) operates in a duopoly environment where prices have remained firm, traffic has held up and fuel surcharges have been successfully implemented.

Sunday 27 July 2008 OTTAWA: AIR CANADA DENIED LAYOFF WAIVER
Federal Labour Minister Jean-Pierre Blackburn has said no to Air Canada's request to a waiver of a provision of federal labour law concerning layoffs. The minister says that the country's biggest airline cannot lay off 2,000 flight attendants on Nov. 1 without giving them 16 weeks' termination notice. The airline will also be obliged to create a joint committee with the attendants' union to seek ways to minimize the impact of the planned layoffs of 2,000 of its 24,000 employees.

Fri 25/07/2008 MONTREAL: AIR CANADA HAS NEW PARTNER
Air Canada says it has entered into a partnership with Continental Airlines, the fourth-biggest U.S. carrier. The arrangement is meant to give Canadian travellers access to more destinations in the eastern U.S. through Continental's hubs in Newark, NJ, and Cleveland, OH, as well as to the southern U.S., Mexico and Central America through the hub in Houston, TX.

Wednesday 16 July 2008 ACE Aviation Holdings (ACE.B : TSX : $9.65)
Fuel price assumptions for Airline Drive ACE NAV lower
TD Newcrest maintains "buy", 12-month target price decreased to $24.00

Friday 11 July 2008 MONTREAL: AIR CANADA LAYS OFF HUNDREDS
Air Canada has announced layoffs of 632 flight attendants based in Vancouver, Winnipeg and Halifax, with last two bases to be closed on Nov. 1. Vancouver will lose 300 jobs, Winnipeg 145 and Halifax 187. Two weeks ago, the airline said that soaring fuel costs would force it to cut 2,000 of its 28,000 employees while reducing capacity by seven per cent. Its regional airline Jazz Air responded by eliminating 270 positions. The Canadian Union of Public Employers, which represents the flight attendants, complains it is "taking the biggest hit of the groups." The employer has offered the Winnipeg and Halifax employees a $10,000 inducement to quit or to exercise their option to bump less senior employees. In Vancouver, those laid off can take leaves of absence or accept lifetime travel passes. The union says the measures are insufficient and that the company should expand its voluntary separation program that enables employs to retire early, an idea that is before arbitration.

Thursday Jul 10, 2008 Flight attendants to be laid off
" onmouseover="return overlib('click to montrealgazette ', LEFT);" onmouseout="return nd();" target="_"> Flight attendants to be laid off
Air Canada has confirmed it will lay off more than 630 flight attendants this fall in Vancouver, Halifax...

Wednesday 09 July 2008 (ACE.B : TSX : $15.61)
Puzzling share performance following $500mm buyback at $22/share
RBC Capital Markets maintains "outperform", 12-month target price is $21.00

MONTREAL: FUEL PRICES LEAD TO 650 AVIATION LAYOFFS
Fuel prices have caused the former Air Canada division Air Canada Technical Services to announce the layoffs of 650 workers in Montreal and Winnipeg, effective immediately. The now private firm said that fuel costs have forced several airlines to file for bankruptcy, to reduce capacity and to ground aircraft and these development among its customers led to the layoffs. Air Canada is the best customer of ACTS and it announced two weeks ago that it would reduce its capacity by seven per cent later this year.

Monday 07 July 2008 TORONTO: AIR CANADA CUTTING FLIGHTS
Canada's largest airline, Air Canada, is cancelling or reducing service on four more routes. Toronto-Madrid service will be dropped for the winter. Daily flights on the Vancouver-Beijing and Vancouver-Shanghai routes will be trimmed. Fewer Air Canada flights will be offered between Toronto and Tel Aviv. Last Monday, the carrier announced suspensions and cancellations affecting 12 routes. Air Canada announced last month that it will reduce its workforce and cut its capacity by 7 per cent as a way to cope with rising fuel costs.

Friday 04 July 2008 HALIFAX: AIR CANADA SUBSIDIARY TO SHRINK
Jazz Air says it will lay off 270 of its 5,000 employees and reduce service by five per cent later this summer. The airline's fleet of Dash-8 turboprops and regional jets are a key means of transport between the country smaller communities, providing 860 flights a day to 57 Canadian destinations and 29 in the U.S. The airline says it has to wait until Air Canada's revelation later in the month of its own route changes before Jazz Air can announce its own reductions. Air Canada has said it will cut 2,000 jobs and reduce service by seven per cent in response to soaring fuel costs.

Jobs slashed

Air Canada Jazz cuts 270 jobs citing high cost of fuel

Air Canada Jazz said Thursday that 270 jobs are being cut as the airline reduces its number of flights...

Tuesday 01 July 2008 MONTREAL: AIR CANADA SAID ABLE TO DEAL WITH FUEL PRICES
Robert Milton, the president of Air Canada's parent firm ACE Aviation, says the airline is better positioned to cope with soaring fuel prices than most of its American competitors. Mr. Milton told the annual meeting that Air Canada has a fleet of recent aircraft which require less fuel, differently from its U.S. competitors. He predicts that the high prices will cause many airlines to disappear, particularly those who charge low fares. Earlier in the month, Air Canada announced the reduction of its capacity by seven per cent, a measure that will cause the loss of 2,000 jobs.

Friday Jun 27, 2008 Wider loss seen for Air Canada
Higher fuel prices and an expected softening demand by business travelers should deepen projected losses for Air Canada, UBS analyst Fadi Chamoun said yesterday. Chamoun, who maintained his "neutral" rating on Air Canada, is projecting a 2008 loss of 72 cents a share, down from a loss of 20 cents a share. For 2009, Chamoun expects a loss of 87 cents a share vs. 90 cents a share..

Tuesday 24 June 2008 OTTAWA: AIRPORT DROPS FEES
Ottawa International Airport says it will reduce its terminal fees by five per cent starting July 1. The non-profit airport's directorship says it made the decision because the airline industry is in a state of crisis because of the cost of fuel. Both Air Canada and its rival WestJet expressed gratitude for the decision.

Monday 23 June 2008 ACE (ACE.B : TSX : $19.36) ACE announces results of its Dutch auction
Canaccord Capital maintains "speculative buy", 12-month target price is $25.00

Friday 20 June 2008 MONTREAL: AIR CANADA UNION WANTS FEDERAL INTERVENTION TO STOP LAYOFFS
The union representing 7,000 Air Canada flight attendants has called on federal Transport Minister Lawrence Canon to intervene in their employer's plan to reduce capacity and to lay off 2,000 workers. The Canadian Union of Public Employees has called on the minister to say what he'll do to protect workers and service in the country's most vulnerable regions. Earlier in the week, Air Canada said it would reduce flights and lay off as many as 2,000 people to compensate for soaring fuel prices. The president of CUPE's Air Canada division, Lesley Swann, has for his part called on Air Canada to let older employees exercise their contractual right to voluntary separation rather than dismissing its lowest-paid employees. He also questioned how serious the airline's financial situation is when Robert Milton, the CEO of its parent firm ACE Aviation Holdings, earned $43 million in 2007 and Air Canada CEO Montie Brewer $8 million.

Thursday Jun 19, 2008 Air Canada might park jets
Air Canada, which plans deep staff and capacity cuts to cope with sky-high fuel prices, might retire wide-body Airbus jets...

Friday 30 May 2008 (ACE.B : TSX : $21.55) Updated roadmap, now only owns Air Canada and ACTS
Canaccord Capital downgrades to "tender", 12-month target price is reduced to $24.00
RBC Capital Markets maintains "outperform", 12-month target price is cut to $25.00

ACE Aviation Holdings* (ACE.B : TSX : $21.63), Net Change: 0.17, % Change: 0.79%, Volume: 310,261
Aeroplan Income Fund* (AER.UN : TSX : $17.33), Net Change: 0.50, % Change: 2.97%, Volume: 5,246,053
Air Canada* (AC.B : TSX : $8.65), Net Change: 0.52, % Change: 6.40%, Volume: 1,590,983
Jazz Air Income Fund* (JAZ.UN : TSX : $7.27), Net Change: 0.27, % Change: 3.86%, Volume: 8,666,365
Return to tender. After the close on Wednesday, ACE Aviation announced that it had sold in the market a total of 19,892,088 units of Aeroplan for total net proceeds to ACE of approximately $349.3 million and a total of 11,726,920 units of Jazz Air Income Fund for total net proceeds to ACE of approximately $85.0 million. As a result, ACE no longer has an ownership stake either in Aeroplan or Jazz. Post these sales, Canaccord Adams Transportation Analyst Tom O. Varesh believes the picture has become clearer as to how ACE will wind itself up. He believes that ACE now has no choice but to try to sell its remaining stake in Air Canada (and its small stake in ACTS) and use those proceeds with its cash on hand to pay all its outstanding liabilities and buy back the remaining shares outstanding. Taking into account the current crude price and given the assumption above, Canaccord Adams is reducing its target price and recommending shareholders Tender to the Dutch Auction process.

Thursday 29 May 2008 (AC.B : TSX : $8.13) Sizing up the surcharge
Raymond James continues "market perform", 6-12 month target price is $8.00

Thursday 29 May 2008 ACE Aviation Holdings (ACE.B) sold its remaining stakes in the Jazz Air Income Fund and the Aeroplan Income Fund for a total of $434.3 million. Unloading 19.9 million units of the Aeroplan Fund, which controls Air Canada's frequent-flier plan, brought in $349.3 million, ACE said in a statement. The sale of 11.7 million units of the Jazz Air fund, which controls regional carrier Jazz Air, fetched C$85 million.

ACE Aviation Holdings (ACE.B) - $21.46 - Updated Roadmap
Outperform, Above Average Risk, Price Target: $25.00 (was $35.00)
On May 28th, ACE sold its remaining 11.7MM Jazz units for $7.30 each and its remaining 19.9MM Aeroplan units for $17.60. This brings ACE's estimated cash position to $1.3 billion. The Dutch Auction expires June 18. RBC CM assumes that ACE will buy back the full $500MM allowed under the buyback. ACE has indicated it does not intend to change the terms of the buyback. RBC CM assumed a take up price of $22.50, the mid-point of the range. This would result in 22.2 million shares being purchased under the tender. RBC CM does not expect the preferred shares or convertible debentures to submit to this buyback. RBC CM then expects ACE to call the 4.25% convertible notes for $323MM plus accrued interest (callable with 30 days notice), funded out of the cash balance. ACE may consider a share exchange with Air Canada, or Air Canada could do a reverse take-over. If ACE continued as a holding company, the convertible preferreds might remain as part of the capital structure. RBC CM understands that should ACE liquidate, dissolve, wind-up or merge (involving a change of control) ACE would have to pay the preferreds the Fully Accreted Value which would be approximately $300MM (a premium of approx. $54MM).

Tuesday 13 May 2008 ACE Aviation Holdings (ACE.B : TSX : $21.28)
ACE announces dutch auction for a third of its shares
Canaccord Capital maintains "buy", 12-month target price is $27.00

Monday 12 May 2008 Air Canada (AC.B : TSX : $8.40)
Q1/08 beats consensus expectations, fuel and economic outlook pose uncertainty
BMO Capital Markets maintains "market perform", 12-month target price is cut to $9.00
Canaccord Capital maintains "buy", 12-month target price is $14.50
Raymond James maintains "market perform", 6-12-month target price is $8.00
RBC Capital Markets maintains "outperform", 12-month target price is $12.00

Monday 12 May 2008 (ACE.B : TSX : $21.32), Net Change: 1.31, % Change: 6.55%, Volume: 251,119
Anybody for a little modified Dutch action? Errr, auction? The Air Canada (AC.A), Aeroplan (AER.UN) and Jazz Air Income Fund (JAZ.UN) holding company announced its financial results and a substantial issuer bid. For Q1, ACE’s EBITDAR amounted to $205 million (compared to $230 million for Q1F07) before the provision for cargo investigations, while Air Canada sales, which generate about 98% of ACE’s revenue, reported EBITDAR of $222 million for the quarter (an increase of $93 million over Q1F07). ACE on Friday announced that its directors have authorized a substantial issuer bid for a combined aggregate of up to 23.8 million shares (up to $500 million). The offer is being made by way of a “Modified Dutch Auction” pursuant to which shareholders may tender all or a portion of their shares. “I am pleased with the operating results for the quarter and ACE’s continued progress on the execution of its wind-up strategy,” said Chairman, President and CEO Robert Milton. On the conference call, the company announced it expects to wind up its Jazz position within weeks, and its Aeroplan position in June. While the company had originally expected to wind up all its positions by the end of June, winding up its Air Canada position and the holding company itself by the end of that period is not expected for another three to six months. Selling an airline, even a well performing one like Air Canada, is proving difficult in this world of US$125 oil. As a result, the Air Canada position will likely wind up via a share exchange or a share buyout.

Saturday 10 May 2008 CALGARY: AIR CANADA IMPOSES FUEL SURCHARGES
Air Canada has announced it has begun imposing fuel surcharges on domestic and U.S.-bound flights. The surcharges will be $20, $40 or $60 depending on the length of the flights. The airline says the surcharges are unavoidable because of the soaring cost of fuel, a cost which could not be compensated by raising fares. On Thursday, Air Canada said that its first-quarter fuel costs had increased by $130 million over the previous first quarter. U.S. carriers instituted similar surcharges last week for transborder flights. Air Canada's main competitor, West-Jet Airlines Ltd., said last week it was considering a surcharge but hasn't yet acted. Air Canada's decision was announced on the day when crude oil prices rose above a record US$126 a barrel.

Saturday 10 May 2008 Air Canada tacks on domestic surcharge
Passengers flying on Air Canada can expect to pay up to $60 more on some one-way tickets after the airline added fuel surcharges to domestic and cross-border routes for the first time in four years.

Tuesday 06 May 2008 Air Canada (AC.A : TSX : $7.81)
Completing fleet renewal and refurbishment program
Canaccord Capital initiates coverage with a "buy", 12-month target price is $14.50

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.

Saturday Apr 26, 2008 Air Canada to charge $25 for second bag
New fee to help offset oil costs. Other major carrier also bumped the price of checking in a second piece of luggage

Wednesday 16 April 2008 (ACE.B : TSX : $19.29), Net Change: 0.22, % Change: 1.15%, Volume: 82,383
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.

Wednesday 16 April 2008 Air Canada (AC.A : TSX : $8.74)
Expecting first-quarter results on or around May 9
RBC Capital Markets maintains a "outperform", target price cut to $12.00

Tuesday 15 April 2008 (ACE.B : TSX : $19.00), Net Change: -0.63, % Change: -3.21%, Volume: 128,570
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.

Saturday Apr 5, 2008 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

Saturday Apr 5, 2008 What's next - a special 'no-shock' fee from Hydro-Québec?
Air Canada has just made you an offer you can refuse.
Friday Apr 4, 2008 Air Canada hits a new low in passenger service
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.
Thursday Apr 3, 2008 Air Canada happy to go extra mile - for a fee
Air Canada is ready to go the extra mile for travellers inconvenienced by delays or travel disruptions..
Tuesday 12 February 2008 (ACE.A : TSX : $23.60) Q4 preview
TD Newcrest maintains "buy", 12-month target price is cut to $30.00
Monday 11 February 2008 ACE.A C$22.26 Buy Target C$30 from TD

Air Canada (AC.A : TSX : $10.73)
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 Aviation Holdings (ACE.B : TSX : $23.44), Net Change: 1.19, % Change: 5.35%, Volume: 203,573
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
Saturday 09 February 2008 AIR CANADA COULD BE IN FOR CHANGE
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.
Friday Feb 8, 2008 Air Canada seems on right course as it faces sky-high fuel costs and slowdown threat
Air Canada seems to be on the right course as it tries to fly through record-high fuel prices and the looming threat of ...
Friday 18 January 2008 (ACE.B : TSX : $24.85) To sell 10.6% of Jazz
Credit Suisse maintains "neutral", 12-month target price is $30.00
Thursday 17 January 2008 (ACE.B : TSX : $24.99), Net Change: -0.91, % Change: -3.51%, Volume: 603,561
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. Wednesday 16 January 2008 RBC (ACE.B) announced that it has accepted an offer to sell a total of 13,000,000 units of Jazz Air Income Fund (JAZ.UN) on an exempt trade basis to certain funds and accounts managed by West Face Capital Inc. and to Sunrise Partners Limited Partnership at a price of $7.45 per unit representing total net proceeds to ACE of approximately $96.85 million. The sale is expected to close on or about January 24, 2008.
Tuesday 15 January 2008 ACE Aviation Holdings (ACE.B : TSX : $26.98)
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
Monday 14 January 2008 (ACE.B : TSX : $27.90), Net Change: -0.46, % Change: -1.62%, Volume: 478,643
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.
RBC ACE Aviation Holdings (ACE.B) - $27.92 - Plan Is On Track
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.
Air Canada (AC.B) - $11.75 - The Economy and ACE Wind-up
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.
Tuesday 08 January 2008 ACE Aviation Holdings (ACE.B : TSX : $28.17), Net Change: -0.05, % Change: -0.18%, Volume: 228,449
“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.
Monday 17 December 2007 (ACE.B : TSX : $28.10)
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

Thursday 06 December 2007 Air Canada (AC.A): $12.29 – Implications of ACE Unwinding
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
Tuesday 04 December 2007 (ACE.A-T, ACE.B-T) C$27.68 Brian Morrison, CA, 416 982 2753
ACTION LIST BUY (Unchanged);Target: C$39.00 ? (Prior: C$38.00)
ACE Announces $1.5-Billion Substantial Issuer Bid

TORONTO: COMPUTER GLITCH DISRUPTS THOUSANDS OF AIR TRAVELLERS
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.
Tuesday 13 November 2007 Air Canada (AC.A : TSX : $13.83)
In line Q3, but profit concerns for 2008
Credit Suisse rates a "underperform", target price cut to $11.25
ACE Aviation Holdings (ACE.B : TSX : $28.09)
Third-quarter results meet expectations
Credit Suisse rates a "neutral", target price is $28.00

Saturday Nov 10, 2007 Air Canada parent's days numbered as profit rises
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.
Wednesday 07 November 2007 (ACE.B : TSX : $29.89)
Third-quarter results coming this Friday
Canaccord Adams downgrades to "hold", target price is $32.50
Friday Oct 12, 2007 MONTREAL: AIR CANADA EXPECTS NEW BOEINGS DESPITE ANNOUNCED DELAY
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.
Wednesday 10 October 2007 ACE Aviation Holdings (ACE.B : TSX : $29.20)
Planning to wind up holding company structure
Canaccord Adams maintains "buy", 12-month target price is raised to $32.50

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
Air Canada recently announced that its flights to India would be cancelled and aircraft redeployed to China. Today, an Indian private-sector airline, ...

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Tuesday 14 August 2007 MONTREAL: AIR CANADA BANKING ON NEW PLANES
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.
Friday 10 August 2007 Air Canada profit climbs 2%
Quarterly results no longer include Jazz after the recent spinoff arranged by Air Canada parent
Wednesday 01 August 2007 rci AIR CANADA AGAIN RATED FIRST
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.
Friday 13 July 2007 Air Canada's pet ban plan partly nixed
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

Karl Moore of McGill University talks to Robert Milton of ACE Aviation about what it takes to be a leader

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Sat 07/07/2007 CHARLOTTETOWN: AIR CANADA, P.E.I. BURY THE HATCHET
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.
Friday 06 July 2007 MONTREAL: SALE OF AIR CANADA MAINTENANCE UNIT IMPENDS
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.
Saturday Jun 23, 2007 ACE maintenance flies south

ACE Aviation Holdings Inc. has agreed to sell off a 70-per-cent stake in its aircraft maintenance, repair and overhaul subsidiary...

Friday 22 June 2007 NO-WOOF, NO-MEOW, NO-FLY
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.

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)
$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.
8 June 2007 CALGARY: AIR CANADA, WESTJET SET SEAT RECORDS
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
Monday 21 May 2007 Landing gear collapses on Air Canada Jazz flight
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.

Monday 14 May 2007 Air Canada loses $34-million in the first quarter
Loss trimmed compared to the $126-million lost a year earlier
Friday 11 May 2007 Air Canada loses $34-million in the first quarter
Loss trimmed compared to the $126-million lost a year earlier
March 5, 2007 ACE Aviation (ACE.B) – $36.00 – Gradually Disappearing
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.
TD target= C$45
3 Mar
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.
Friday 02 March 2007 ACE Aviation to distribute $603-million in Aeroplan, Jazz units
ACE Aviation Holdings Inc. has announced a $603-million distribution of stock in Aeroplan Income Fund and Jazz Air Income Fund on March 14.
Monday 12 February 2007 Aviation (ACE.B) – $35.56 – Revving Up Its Engines For Value Maximization
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.
Wednesday 31 January 2007 globe ACE aims high with spinoff of repair unit
Shops larger piece to private buyers
Thursday 11 January 2007 Air Canada (AC.B) – $17.75 – Initiation of Coverage
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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