Transat A.T. Inc. announces final results of Substantial Issuer Bid

Transat A.T. Inc. announced the final results of its offer to purchase for cancellation up to $125 million of its Class A Variable Voting Shares and Class B Voting Shares. Based on final reports from CIBC Mellon Trust Company on the response to its offer to purchase, Transat takes up 1,780,797 Class A Variable Voting Shares and 4,662,502 Class B Voting Shares at a purchase price of $19.40 per share. The final pro-ration factor that has been applied to the Class A Variable Voting Shares and Class B Voting Shares properly deposited is approximately 99%. As a result, shareholders who Read more

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Delta pilots approve new agreement

Delta Air Lines pilots ratified an interim agreement that provides for a 14 percent hourly wage reduction and reductions in other pilot pay and cost items equivalent to approximately an additional 1 percent in pilot pay. The interim agreement will result in pilot cost reductions of approximately $143 million on an annualized basis. The agreement is effective as of Dec. 15, 2005, and will remain in effect while the parties seek to reach a comprehensive agreement. Under the terms of the interim agreement, the company and ALPA have pledged to commit their full resources to negotiate a tentative comprehensive agreement Read more

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MAS is seaking short-term cash injection

Malaysia Airlines will introduce a rigorous and disciplined cash management programme to stop and reduce the cash-burn rate of the company, both in terms of operating cost and also capital expenditure. It also seeks avenues to secure immediate short-term cash injection and financing, including sale of assets. MAS is currently in discussion with the Government on the modality of such financial support. Various cost reduction programs are being pursued as part of the Business Turnaround Map.

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U.S. domestic airline industry generated losses in third quarter

The BTS reported for the third quarter 2005, that the domestic U.S. passenger airline industry operating margin, represented by 21 selected carriers, declined from a 0.4% profit margin in the second quarter of 2005 to a 2.0% loss margin in the third quarter. The seven largest regional airlines and the seven largest low-cost carriers each reported a domestic operating profit margin while the network carriers reported a smaller loss during the third quarter of 2005 than a year earlier. The group of regional carriers reported a domestic operating profit margin of 7.4% for the third quarter and the low-cost group Read more

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World Airways pilot union rejects final offer

World Airways said that the National Mediation Board (NMB) has released the company and its pilots, represented by the International Brotherhood of Teamsters (IBT), from the mediation process that began in January 2004. The NMB issued notice of the release Dec. 28, 2005, initiating a 30-day cooling-off period before either party can engage in self-help. Both the company and the pilots

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