Air Canada Inc T.AC


Translation courtesy of the Yandex online translator :). Imo, the interview covers a range of subjects, not just AC, but it is strongly bullish on air travel (I did not find it weak), and in Letko's position regarding Air Canada. Also, imo, Letko with their deep knowledge of the industry, in North America, and Global would surely know which other parties have been gobbling up the shares in 2020.

That accumulation started well before covid, and was responsible for the move above £50. For serious investors, the game is still on. with new timelines.

Original Credits- La Presse - Richard Dufour. May 9, 2020 Peter Letko confident about air travel and support that Buffett is wrong.
Montreal asset manager Peter Letko's confidence in air transport remains very strong despite the crisis, despite the public disavowal of renowned investor Warren Buffett to the industry last weekend.

Warren Buffett announced a week ago, at the Annual Meeting of Berkshire Hathaway, that the conglomerate he heads had just liquidated its shares in air transport. Berkshire Hathaway was the first shareholder of Delta and the second largest shareholder of Southwest, American and United.
 
Warren Buffett admitted that he made a mistake in 2016 by investing again in air travel.
 
"I have a lot of respect for Warren Buffett. But we invested in Air transport long before him.

I think he lost a lot of money while we did a lot of it, " says Portfolio Manager Peter Letko, of Letko Brosseau and Associates.
 
I understand why [Warren Buffett] did this [sell his air carrier shares], but this is not the first time I disagree with him.
 
Peter Letko, portfolio manager
 
The first shareholder of Transat and Air Canada, Letko Brosseau sold a portion of its shares in Air Canada three years ago. The firm had bought its first shares of Air Canada during the financial crisis a decade ago.
 
Last spring, Letko Brosseau objected to Air Canada's preliminary £ 13 per share proposal for Transat, as the firm considered the Montreal tour operator to be worth " much more." Air Canada finally agreed to upgrade its offer to £ 18 per share.
 
Warren Buffett's mistake is to have bought his shares of air carriers too late. The result is that it takes losses by selling, " says Peter Letko.
 
"We were the largest shareholder of WestJet and last year we sold our shares of this carrier with a big profit.

It worked for us. We have a very different opinion [from Warren Buffett's]. >>
 
Revealing last weekend that he had abandoned air travel, Warren Buffett said that "the world has changed".
 
"We think a lot about it," admits Peter Letko. It is very possible that people will become more cautious and think more before flying.

But if a vaccine is found, people will regain their habits. Except maybe business people because of the current use of teleconferences. However, it is too early to say that everything will change.

People like to travel, visit and see other people. >>
 
Peter Letko certainly does not intend to stop flying. "I have this taste since I was very young. The important thing is the discovery of a vaccine. I'll be ready to resume a commercial flight when a vaccine is offered. >>
 
Asked about his level of confidence in Air Canada's acquisition of Transat, Peter Letko was sceptical. "Frankly, I don't know.

With everything that just happened, we really don't know. The transaction is still interesting for Air Canada. But a lot has changed.

The government may impose conditions and Air Canada may find them too severe. >>
 
With Transat's £ 8 share, the market is sure to cast doubts. "It tells us that there are certain risks, of course," admits Peter Letko. But look what just happened. Almost all planes are nailed to the ground today.

This is not something that could have been anticipated at the time of the announcement of the transaction. So that's normal. >>
 
According to him, Air Canada does not need Transat capacity at this time. "But maybe in a year or more, though. A health development, such as the discovery of a vaccine, could quickly change the situation, " he says.
 
Letko Brosseau is also still a shareholder of Bombardier and Mr.

Letko believes that the pandemic could have an impact on demand for private aircraft, such as business jets manufactured by Bombardier. Perhaps more and more people who can afford it financially will want to travel in private jets, he believes.
 
As for the negative impact that a recession could have on demand for Bombardier-made aircraft, Peter Letko replies that it will depend on the length of that recession.
 
If he says he does not know the new CEO of Bombardier, Eric Martel, Peter Letko has agreed to give his appreciation of the passage of Alain Bellemare at the helm of the company.
 
"It was a difficult time. He had a big challenge to face with the development of the ex-C Series.

It took more time and more money. It's really a pity that these devices are now in the hands of Airbus. And it is a pity for all of us here in Quebec who have participated in one way or another in the development effort.

It's a pity and even a little sad. >>
 
 

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