Is Air Canada on borrowed time?
I am not sure if I have this correctly but here is my understanding.
ACE aviation became the parent company of Air Canada and they have since been selling off everything they can and stripping the company of any value.
Having been looking at some articles and I have some questions.
MONTREAL, Feb. 10, 2012 /CNW Telbec/ - ACE Aviation Holdings Inc. (ACE) today reported full year and fourth quarter results for 2011 and announced its intention to seek shareholder approval for its winding-up, the distribution of its remaining net assets and ultimately its dissolution in the future.
Air Canada estimates that it will have pension funding obligations of $341-million this year and $393-million in 2013.
So between the losses Air Canada are posting and the work disruptions etc. it looks quite scary. I wonder where they can continue to find money to operate.
So a few questions:
1) Does this mean they (ACE) have picked the bones clean and they see no further value in the airline?
2) Do they have any control of Air Canada's Management team, cash flow etc?
3) If AC continues to loose money can they raise capital somehow?
4) And I guess lastly should a guy with a wife kids and mortgage be leaving a turboprop job to go fly for them?