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Gold/Mining/Energy : Air Canada is taking off? -- Ignore unavailable to you. Want to Upgrade?

To: Alomex who wrote (900)	10/6/1999 1:47:00 PM
From: Michel Miron	Read Replies (1) \| Respond to of 1033

Clever plan "We let Canadian go bankrupt (Chapter 11 as they say) which allows them to swap their entire debt for equity, and since CA is profitable if we exclude debt payments and servicing, AC would face a stronger competitor after CA is allowed to go under." It is so simple. Erase the debt and keep airplanes. Financial institutions are known for their generosity. In all likelihood, the fin. inst. will cease the airplanes and sell them. CA will have to borrow again (if it can find a lender) to buy planes or lease what it is available on the market at a high cost. No it is not a solution.

To: Alomex who wrote (900)	10/10/1999 10:59:00 AM
From: Luke12_15	Read Replies (1) \| Respond to of 1033

What do think will happen to CA????? You actually hit the nail on the side of the head. you wrote "I don't think AA is willing to put one more cent into CA. I think CA would be rescued by government re-regulation of the industry, perhaps forced code share within Canada." Wrong. This battle originated in the US. It is also between AMR and UAL. Neither one of these big guys want any disruption in thier cash stream. AMR will, as a last resort, keep CA alive with a cash injection because they would lose more if they allow CA to go bankrupt. AC knows this. Some people are confused by the announcement this week that AC star alliance partners and the BOM will buy 35% of AC. This is not a counter-offer. This is a counter-move. As long as only 35% of shareholders say NO this deal goes away. Also AC has addressed concerns that it is simply waiting for CA to go bankrupt. Such is not the case. Untrue. AC has already made a proposal to keep CA alive but were rejected by CA. AC most likely will make another offer once CA realizes that the Onex deal will not "fly" You can be sure that any deal put forward by AC will favour AC and its shareholders. Finally, in reference to the Onex "commitments" may I say that schwartz has done an excellent job of marketing. He travelled around the country gathered all the negative concerns and then made a bunch of promises to people. Limited promises. I wonder what will be the cost of these promises to shareholder value?????? also If the star alliance were to lose AC I wonder who they would partner with in Canada and how this would affect "Airco". J Stephen Jollimore