Porter

[Simon]

It sounds like DoT stats or some such. And the problem is not that, it's that it's just another rant about WS' cost ratios, which seems not to be relevant to a thread entitled "Porter".

But clearly, I'm a censor, so don't listen to me

[Rosedale]

It sounds like DoT stats or some such. And the problem is not that, it's that it's just another rant about WS' cost ratios, which seems not to be relevant to a thread entitled "Porter".

But clearly, I'm a censor, so don't listen to me

Hey....have a chat with Parny. The thread was all about Porter until his usual pathologically stupid response that linked the thread to WJ.

Report this postReply with quoteRe: Porter
by parnel » Sat Dec 05, 2009 12:37 pm

Rosedale wrote:
According DoT T100 Data, Porter's load factor on MDW-YTZ from Nov 2008 thru May 2009 was 17.9%, (9,615 seats filled on 53,690 seats available). Subtract all the non rev's, freebies and it's even less than that.

How many airlines do you know that make money with 18% loads?

None. Except Porter.



Or WJA on the eastern triangle


----------------------------------

If he's going to serve up beach balls, they are going to slugged into the bleachers.

[Cloud Lounger]

Probably not news for you GTA types, but first I have heard of the pedestrian tunnel idea to get to the Island. Seems like a reasonable idea.

http://www.theglobeandmail.com/news/nat ... le1450242/

Island-airport tunnel digging its heels in. Controversial plan now looks near-impossible to block, with a private-sector partner and $5 user fees to help pay for underwater footpath

Kelly Grant
Toronto — From Saturday's Globe and Mail
Last updated on Saturday, Jan. 30, 2010 3:46AM EST

The island airport's owners are forging ahead with an underwater tunnel to the mainland – and this time, the scheme looks near-impossible to block.

The Toronto Port Authority, the federal agency that owns and operates the airport, announced Friday it is seeking a private-sector partner to finance and construct a pedestrian-only passageway beneath the Western Gap.

The TPA isn't asking for tax dollars – it would pay for the project by boosting airport improvement fees instead – and it isn't asking city hall for permission. The TPA doesn't appear to need say-so; Ottawa already owns the land at the foot of Bathurst Street.

[parnel]

http://www.montrealgazette.com/Could+Po ... story.html

The rumour mill is turning again that entrepreneur Robert Deluce is planning to take his highly successful Porter Airlines public this spring. Some industry analysts claim he needs to raise funds to build Porter's new terminal at the downtown Billy Bishop Toronto City Airport and to complete Porter's Bombardier turboprop fleet to 20 aircraft by year-end.

Deluce has said his airline has been profitable since 2007 and he is steadily adding more routes in Eastern Canada and the Northeastern U.S. The company has a strong institutional backing already.

Some analysts are betting the IPO will come at the end of March, but Porter spokesman Brad Cicero said the terminal project, infrastructure and turboprop fleet is already fully financed. "There are no plans to raise new capital now," he added.

[why fly]

If it was public we would not have the AC crew yelling, if Porter is making money or not

However if AC got people to invest there must be lots of suckers willing to buy Porter shares.

[stinger]

According to the Globe and Mail today. On the Queen's itinerary for her summer visit includes a flight on Porter Airlines from the island in Toronto to Waterloo for her meeting with Balsillie and tour of the RIM production line. (July 5th)

[airbus320]

Porter Aviation Holdings Inc. has cut the per-share price on its planned initial public offering to $5.50 from as much as $7 after investors balked at the valuation the airline sought.
The Toronto-based airline and bankers decided on the new valuation on Friday and will try to get the deal done by Tuesday, said two people familiar with the pricing.

Porter is attempting to raise $120-million, but the IPO has been delayed as the company filed updated financial statements. The deal was put in a holding pattern last week when stock markets swooned on investor concerns with European debt and the strength of a North American economic recovery. A number of U.S. IPOs have been pulled, or done at reduced prices and size, in the face of weak equity markets.

Porter is raising money to expand its fleet of Bombardier aircraft, with plans to begin flying from Toronto to cities such as Detroit, Pittsburgh and Cincinnati. None of Porter’s backers - private equity funds and management - are selling stock in the IPO.

Source: The G&M

[parnel]

Blames volatile equity markets

* Says company well-positioned to wait for stable markets

* May revisit IPO or look at other forms of financing

* Planned offering was C$120 mln in stock (Recasts with CEO interview, analyst comment, background)

By Nicole Mordant

VANCOUVER, June 1 (Reuters) - Porter Aviation Holdings Inc, an upstart regional challenger to Canada's major airlines, said on Tuesday it was suspending plans for an initial public stock offering, the latest company to be burned by the equity market's recent volatility.

The small, 3-1/2-year-old carrier, which has been luring travelers from Air Canada (ACa.TO) and WestJet Airlines (WJA.TO) in Eastern Canada, had planned to raise C$120 million ($114 million) to potentially buy new aircraft before shaky equity markets took another tumble.

"We all know it has been a difficult May in the marketplace ... We certainly were not prepared to sell our stock at any price," said Porter Chief Executive Robert Deluce.

The Globe and Mail newspaper reported last week that Porter was chopping the price on its offering to about C$5.50 a share from between C$6 and C$7 a share.

Deluce said that once markets settle down Porter will again consider a public offering as well as "other forms of public financing". The company was in good shape, with passenger numbers and profitability up in the first quarter, and did not need the money now.

"Quite frankly, it's all moving nicely in the right direction and there is no pressure on us to do anything that we don't want to," Deluce told Reuters in an interview.

Porter Airlines, as it is known, has become a favorite with business travelers because of its "business-class-for-all" service and the close proximity to downtown Toronto of the Billy Bishop airport out of which it flies.

It started operations in 2006 with just two aircraft but now flies 20 Bombardier (BBDb.TO) 70-seat Q400 turboprops to 13 destinations in Eastern Canada and into the United States.

UNSTABLE MARKETS

Over the past several weeks, initial offerings by Canadian companies have not fared so well, raising less cash than expected in some cases and dropping below their IPO price soon after trading began in others.

Stock of Athabasca Oil Sands Corp (ATH.TO), Canada's largest IPO in a decade, has plunged 42 percent since it went public in April.

"IPOs are dangerous territory to begin with and airlines maybe add a bit," said Michael Sprung, president of Sprung & Co Investment Counsel.

"You could easily get caught in a downdraft. The last thing a new IPO wants is for there to be a lot of stock on the shelf," Sprung said.

Porter said in its offering prospectus that it plans to acquire up to nine new aircraft over the next 12 months, including two that were delivered in April.

($1=$1.05 Canadian) (Additional reporting by Pav Jordan; editing by Rob Wilson)

[exAC]

Kevin O'leary claims that the major reason is there was no dividend attached to the package.

I tend to agree. Why would I put money into something that does not give me a return on MY capital.

[robsawatsky]

Kevin O'leary claims that the major reason is there was no dividend attached to the package.

I tend to agree. Why would I put money into something that does not give me a return on MY capital.

Does any airline pay a dividend? If the dividend is the only foreseeable return (i.e. no appreciation in share valuation expected) then perhaps it is not a good investment at all.

[parnel]

IMHO the market is a buyer's one these days. The money guys are being patient and awaiting the next step in our so called economic recovery which is supposed to be a severe correction. I'm seeing fewer M&A deals around as well.

[stinger]

This makes complete sense. If they don't need the cash immediately, why not wait and sell your shares closer to your own terms.

I took a Porter flight from YTZ-YQB last week. (Wednesday) and the flight was full (Which really doesn't mean anythning as I was attending a conference many on the flight were) However, I had never been on a flight that was full and can say it was still very comfortable. Although, the steamwhistle could have been cold!!!

[CANADI>N]

Kevin O'leary claims that the major reason is there was no dividend attached to the package.

I tend to agree. Why would I put money into something that does not give me a return on MY capital.

Does any airline pay a dividend? If the dividend is the only foreseeable return (i.e. no appreciation in share valuation expected) then perhaps it is not a good investment at all.

I get 8¢ a unit each month from JAZZ. It pledges to keep this payout as a dividend when it converts to a normal shareholding corporation. Neither AC nor ACE pay dividends, just spin off shares/units of its subsidiaries. I think I get a small dividend from AE since it converted to a shareholding corp, but it is also now using its profits to buy new companies and expand. WS does issue dividends (when it makes a large enough profit). Not sure about US airlines.

Airlines are not generally bought by small individual shareholders because they are so risky and don't normally pay dividends (primarily because few have made money for so long), and tend to be bought by pension funds and others looking for increasing share prices and possible acquisition fodder.

Just read this morning that Ryanair was issuing its first ever dividend after many years of profits, albeit they've been reinvested in fleet and route expansion.

[YEG Guy]

Kevin O'leary claims that the major reason is there was no dividend attached to the package.

I tend to agree. Why would I put money into something that does not give me a return on MY capital.

Does any airline pay a dividend? If the dividend is the only foreseeable return (i.e. no appreciation in share valuation expected) then perhaps it is not a good investment at all.

Southwest pays a quarterly dividend. Next payout is June 22 for shareholders of record on June 7th.

Additionally the AC payouts during the Onex/CP takeover war was considered a dividend and return of capital. Additionally ACE Aviation has paid out dividends and completed sharebuybacks (return of capital dividend). In North America terms, the airline CEO that got it right and paid shareholders their due course was Robert Milton.

Outside of North America most airlines pay a dividend. LH temporarily suspended their dividend in 2008/09 but is looking to return to their dividend policy in 2010. SQ and CX pay dividends to their holding companies. Others are in too rough a shape for dividend payouts.

[blue2002]

There is an interesting benefit to loosing status... loosing it completely. Over the last year and a bit I have been flying to destinations not served by AC, nor *A. As a result, while I have gained Gold status on, for example, Caribbean Airlines, my Aeroplan is back to the exalted orange. With my expected flying pattern, I don't expect make Gold this year. So, when a personal flight to the east coast came up, I had really no reason not to try Porter, especially given that it was about 100 bucks less than AC Tango... each way.

Now, I am usually not one to write trip reports and I will not be caught dead posting pictures of my in-flight meals or amenity kits, but... Wow... Half-way through the trip I felt like pinching myself, alternately poking the flight attendant (with my finger) just to see if this was all real.

1) On the ground: The departure experience from YTZ is totally painless. The departure lounge offers snacks, decent coffee (same espresso machines as at MLLs), soft drinks etc etc etc and, oh yes, free wireless. Comfy chairs, well designed space... For domestic travel purposes, they are not too far behind MLLs, and in some aspects ahead of them.

2) On board: A sandwich on the first leg of the outbound (a tasty one, actually), a snack from the tray on the second. Steam Whistle poured into a real glass; also a choice of acceptable red and white Ontario wines. An actual choice of teas (Tazo). Ample leg room. A pretty quiet aircraft.

3) Staff on the ground and in the air friendly, smiling and genuinely trying to be of service.

All this after they have been operating for some time now, so things definitely had a chance to deteriorate by now... but based on prior reports, they apparently have not. I am not saying that Porter beats AC business class. I am however quite sure that for the money paid (lowest fare), I got way more of my money's worth than I would have with AC. Just my 2 cents.