Canada 3000 on the way down?
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Canada 3000 on the way down?
After reading a few reports of the airline being in a "perilous financial position" it seems that one of their A340s has been impounded at LGW... Anyone know what the outcome of their big important meeting was yesterday?
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Don't think things are over just yet as I understand that the A340 has now taken off from Gatwick.
The following is from the CBC Website:
Fate of Canada 3000 hangs in balance as board weighs Royal bid.
Last Updated: Thu Nov 8 08:43:58 2001
TORONTO - Canada 3000's board of directors is wrestling with possible insolvency, hundreds of job cuts and a $49 million bid for its Royal Aviation assets.
Late Wednesday, Canada 3000 unions offered to approve 680 job cuts to help the country's second-largest airline.
Outside a meeting of Canada 3000's board and its unions, company spokeswoman Angela Saclamacis said:
The cuts would affect 180 of the airline's 577 pilots
500 of its 1,500 flight attendants
The former head of Royal Aviation has sent Canada 3000 what he calls a "serious" offer to buy back his airline – but at a price significantly below what he got when he sold it to Canada 3000 earlier this year.
Michel Leblanc, the former president of Royal Aviation, said he's offered $25 million and will assume $24 million of Royal's debt, making the offer worth $49 million – an amount that he says represents "fair market value" for most of Royal's assets.
Canada 3000 bought Royal for $82 million in stock.
Leblanc said his offer is conditional on Canada 3000 getting $30 million in loan guarantees from Ottawa.
He said his plan would save a majority of Royal's 1,400 jobs.
So far, Canada 3000 has not responded to the Royal offer.
In Ottawa, Transport minister David Collenette said the $75-million loan guarantee Ottawa had offered to Canada 3000 12 days ago was now a moot point as the company had withdrawn its business plan, saying conditions had changed.
"The company came to the conclusion that the business plan that they had originally submitted to the government was not going to ensure viability," Collenette said.
This morning, the Canada Industrial Relations Board (CIRB) dismissed Canada 3000's application to shut down its Royal Aviation subsidiary, setting the stage for a possible bankruptcy restructuring by the troubled carrier.
The airline had appeared before a CIRB hearing Tuesday to ask the board to allow it to re-open contracts, making it easier for Canada 3000 to fold its Royal operations and lay off 1,400 Royal employees without having to consider seniority rights with the other Canada 3000 employees.
But the CIRB said it didn't have jurisdiction in the matter. Board chairman Gordon Hamilton said the company and unions should get together to work out a cost-cutting plan – a suggestion quickly embraced by the Canadian Union of Public Employees, which represents hundreds of Royal employees.
Trading in shares of Canada 3000 was halted all day as the request of the company. They last traded Tuesday at $3.11.
At Tuesday's CIRB hearing, Canada 3000 president Angus Kinnear warned that the airline might have to file for bankruptcy protection as early as today.
He said the airline is losing $750,000 a day and needed to make drastic cuts to stay alive.
Canada 3000 has been hard hit by the Sept. 11 attacks and the slumping Canadian dollar, which has further slowed vacation travel to the American south.
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The following is from the CBC Website:
Fate of Canada 3000 hangs in balance as board weighs Royal bid.
Last Updated: Thu Nov 8 08:43:58 2001
TORONTO - Canada 3000's board of directors is wrestling with possible insolvency, hundreds of job cuts and a $49 million bid for its Royal Aviation assets.
Late Wednesday, Canada 3000 unions offered to approve 680 job cuts to help the country's second-largest airline.
Outside a meeting of Canada 3000's board and its unions, company spokeswoman Angela Saclamacis said:
The cuts would affect 180 of the airline's 577 pilots
500 of its 1,500 flight attendants
The former head of Royal Aviation has sent Canada 3000 what he calls a "serious" offer to buy back his airline – but at a price significantly below what he got when he sold it to Canada 3000 earlier this year.
Michel Leblanc, the former president of Royal Aviation, said he's offered $25 million and will assume $24 million of Royal's debt, making the offer worth $49 million – an amount that he says represents "fair market value" for most of Royal's assets.
Canada 3000 bought Royal for $82 million in stock.
Leblanc said his offer is conditional on Canada 3000 getting $30 million in loan guarantees from Ottawa.
He said his plan would save a majority of Royal's 1,400 jobs.
So far, Canada 3000 has not responded to the Royal offer.
In Ottawa, Transport minister David Collenette said the $75-million loan guarantee Ottawa had offered to Canada 3000 12 days ago was now a moot point as the company had withdrawn its business plan, saying conditions had changed.
"The company came to the conclusion that the business plan that they had originally submitted to the government was not going to ensure viability," Collenette said.
This morning, the Canada Industrial Relations Board (CIRB) dismissed Canada 3000's application to shut down its Royal Aviation subsidiary, setting the stage for a possible bankruptcy restructuring by the troubled carrier.
The airline had appeared before a CIRB hearing Tuesday to ask the board to allow it to re-open contracts, making it easier for Canada 3000 to fold its Royal operations and lay off 1,400 Royal employees without having to consider seniority rights with the other Canada 3000 employees.
But the CIRB said it didn't have jurisdiction in the matter. Board chairman Gordon Hamilton said the company and unions should get together to work out a cost-cutting plan – a suggestion quickly embraced by the Canadian Union of Public Employees, which represents hundreds of Royal employees.
Trading in shares of Canada 3000 was halted all day as the request of the company. They last traded Tuesday at $3.11.
At Tuesday's CIRB hearing, Canada 3000 president Angus Kinnear warned that the airline might have to file for bankruptcy protection as early as today.
He said the airline is losing $750,000 a day and needed to make drastic cuts to stay alive.
Canada 3000 has been hard hit by the Sept. 11 attacks and the slumping Canadian dollar, which has further slowed vacation travel to the American south.
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TORONTO (CP) -- Troubled airline Canada 3000
filed for protection from creditors
under federal bankruptcy laws Thursday after
failing to reach a deal with its unions that would
have cut hundreds of jobs and reduced operating
costs.
The battered carrier, which is losing about
$700,000 a day and has only a few days of cash
left, made the filing in a Toronto court under the
federal Companies' Creditors Arrangement Act.
The act -- used by troubled companies such as
Eatons, Algoma Steel, Dylex and others -- allows
the airline to restructure its debt, cut its workforce
and negotiate with creditors while it tries to come
up with a long-term survival plan.
In Ottawa, Transport Minister David Collenette
confirmed the filing for bankruptcy protection under
questioning in the Commons and said the airline's
future is now before the courts.
"On the assumption that the judge grants the
application, the matter is now being supervised
under statute and we have to let the process take
its course," the minister said.
filed for protection from creditors
under federal bankruptcy laws Thursday after
failing to reach a deal with its unions that would
have cut hundreds of jobs and reduced operating
costs.
The battered carrier, which is losing about
$700,000 a day and has only a few days of cash
left, made the filing in a Toronto court under the
federal Companies' Creditors Arrangement Act.
The act -- used by troubled companies such as
Eatons, Algoma Steel, Dylex and others -- allows
the airline to restructure its debt, cut its workforce
and negotiate with creditors while it tries to come
up with a long-term survival plan.
In Ottawa, Transport Minister David Collenette
confirmed the filing for bankruptcy protection under
questioning in the Commons and said the airline's
future is now before the courts.
"On the assumption that the judge grants the
application, the matter is now being supervised
under statute and we have to let the process take
its course," the minister said.
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Sorry to hear the bad news, but another one bites the dust. Guess I'm not in the holding pool any more?? Next course WAS for early January (320) The ones that got on the last course might be hardest hit! I know a few that left the military and didn't even finish the type course! Welcome to the civy world gents... life is sometimes a b*tch.
Best luck to all
Best luck to all
