CAG files for bankruptcy protection

I think 35 A350s, 29 787s, and 31 A380s is the reason why the whole thing went bankrupt. Sounds like a really big bet to me that failed.

Aleksania International Airlines offers to lend assistance to CAG on routs if need be.

Here's the decision from the court regarding about the bankruptcy protection for CAG:

Company to be restructured, 30%, or 55 000, of jobs to be axed by November 2011.
Non-profitable routes will cease operations by March 2011.
All non-delivered aeroplanes that are not being built will be cancelled and will be refunded fully, with the exception of 10 Boeing 787-900s and 12 Airbus A350-1000s.
All aeroplanes currently being built but not yet delivered will have its delivery delayed by one month.
Caroline Aviation Group to be delisted from all stock markets, except Sypogen Stock Exchange, before the start of 2011 financial year.

National carrier Caroline Airways will lower its presence in the American Market by 70% by March 2011, African Market by 100% by January 2011, European Market by 50% by April 2011 and Middle Eastern Market by 50% by January 2011.
Regional airline Air Melanesia will cut marginally profitable routes by 80% by March 2011.
Regional airline AirJoy will cease operation and its profitable routes to be transferred to Air Melanesia by January 2011.
Caroline Aviation Group's 49% stake on no-frills airline Caroline AirAsia to be sold back to AirAsia or to another company by November 2011.
All airlines' routes within the Caroline region, except Fornax, to be cut by 75% by January 2011.
Catering company Air Gourmet Company will remain as it is.

Caroline Airways Cargo to remain as a joint-venture between Pan American Cargo and Caroline Aviation Group.
Pending final decision, Singapore Airlines Cargo will be the third company in the Caroline Airways Cargo joint-venture.
Pending final decision for Caroline Airways Cargo joint-venture, Caroline Aviation Group will lower its stake by 16% to 35%, Pan American Cargo will lower its stake by 16% to 33%, and Singapore Airlines Cargo will get a 32% stake.

Air Gourmet Company is part of the CAG? Would they like to design meals for Fly Illu'a?

Aleksania International Airlines would like to buy AirJoy

emgmod wrote:Air Gourmet Company is part of the CAG? Would they like to design meals for Fly Illu'a?

Yes, it is. As the whole CAG is under restructuring, your request will be attended to once Air Gourmet Company is ready to take in new cilents.

Aleks wrote:Aleksania International Airlines would like to buy AirJoy

As the whole CAG is under restructuring, your proposal might be considered as part of the restructuring plan.

Here's an update on the Caroline Aviation Group:

7,000 jobs have been axed so far, with another 48,000 more jobs to be axed by November 2011.
***Non-profitable routes will cease operations by March 2011.
All non-delivered aeroplanes that are not being built have been cancelled and fully refunded.
Order confirmation of 10 Boeing 787-900s and 12 Airbus A350-1000s.
All aeroplanes currently being built but not yet delivered have its delivery delayed by one month.
Caroline Aviation Group delisted from all stock markets, except Sypogen Stock Exchange.

Caroline Airways have lowered its presence in the American Market by 40% with another 30% by March 2011; African Market by 100%; European Market by 20% with another 30% by March 2011 (instead of April); Middle Eastern Market by 40% with another 10% by January 2011.
Air Melanesia have cut marginally profitable routes by 30% with another 50% by March 2011.
Plans to cease AirJoy on hold after Aleksania International Airlines proposal to buy over.
Caroline Aviation Group's 49% stake on no-frills airline Caroline AirAsia to be sold back to AirAsia or to another company by November 2011.
All airlines' routes within the Caroline region, except Fornax, have been cut by 60% with another 15% by January 2011.
Fly Illu'a request have been filed and pending final decision.

Caroline Airways Cargo to remain as a joint-venture between Pan American Cargo and Caroline Aviation Group.
Pending final decision, Singapore Airlines Cargo will be the third company in the Caroline Airways Cargo joint-venture.
Pending final decision for Caroline Airways Cargo joint-venture, Caroline Aviation Group will lower its stake by 16% to 35%, Pan American Cargo will lower its stake by 16% to 33%, and Singapore Airlines Cargo will get a 32% stake.

So Aleks, do you have any objections on Singapore Airlines Cargo joining into the joint venture? And do you have any objections in your stakes being lowered?
Also, Aleks, how much do your offer to buy over AirJoy?

No I do not as long as I have an at least 25% stake; and I was thinking about the total company value + 5%.

Aleks wrote:No I do not as long as I have an at least 25% stake

Ok. I'll keep with the current arrangement and see how I'll go on from there.

Aleks wrote:and I was thinking about the total company value + 5%.

Hmm, since I don't have much experience in the aviation industry, how much does a regional no-frills (or budget) airline usually worth?

Here's an update on the Caroline Aviation Group:

21,000 jobs have been axed so far, with another 34,000 more jobs to be axed by November 2011.
All non-profitable routes have ceased operations.
Order confirmation of 10 Boeing 787-900s and 12 Airbus A350-1000s.

Caroline Airways have fully lowered its presence in the American Market by 70%; African Market by 100%; European Market by 50%; Middle Eastern Market by 50%.
Air Melanesia have fully cut marginally profitable routes by 80%.
CAG and Aleksania International Airlines in talks over AIA's proposal to buy over AirJoy.
Caroline Aviation Group's 49% stake on no-frills airline Caroline AirAsia will be sold back to AirAsia on 4 March 2011.
All airlines' routes within the Caroline region, except Fornax, have been fully cut by 75%.
Fly Illu'a request is still pending final decision.

Singapore Airlines Cargo approve to be the third company in the Caroline Airways Cargo joint-venture.
CA Cargo to begin operations 4 April 2011.
The final decision on the stakes are as follow: 35% to Caroline Aviation Group, 32.5% to Pan American Cargo, 32.5% to Singapore Airlines Cargo.
SIA Cargo will codeshare two of its routes to CA Cargo: Singapore and Hong Kong, Singapore and Shanghai. This marks the first time codeshare is being used in the cargo airline industry.

Regarding AIA's proposal to buyover AirJoy, its company value as of 1 January 2011 (when it cased operations) is at US$ 352 617 549 (if ths is not realistic for a low-cost airlines, please inform me). CAG is willing to sell AirJoy to AIA if it agrees to buy at its value plus 20% of it, costing US$ 423 141 058. Price is negotiable.

Cattala Royal Investment Fund is looking to invest in Caroline Aviation Group. We hope to hear back from CAG as soon as possible so that discussions can commence.

Note: CRIF is interested in first class and business-focused airlines.

How will this investment work? Sorry, I don't know much about business and finance.

CRIF is looking to buy a large stake in a business-class focused airline, so it would be buy a stake of around 30-40%, depending on how large CAG's investment in the airline is.
For example:

CAG owns 90% of FornaxLuxair.
CRIF purchases 35% of FornaxLuxair, from CAG.
Now CAG owns 55%, CRIF owns 35% and another investor owns 10%.

What's the benefits of investing in a company, and a company being invested in?

In an ideal world CRIF would make a profit from the shares, and the shareholders in the company get more money, and the company's share price tends to go up as well, meaning it gets more disposable income.

Hmm, ok then. I guess CRIF investing on CAG will rebuilt the company.

Here's a little more info to help you decide on investing on CAG:

Caroline Airways (CAA) was established in 1946 as a domestic airlines serving the Melanesia Caroline Group (MCG). Successful advertising campaigns help the airline to expand further, tapping into the South East Asian region. Within a decade, it covers three region: MCG, SEA and Australia-New Zealand. In the 1970s, the company improve its strategy by maintaining a young fleet of maximum 15 years of service and operating two long-haul flights, to Toyko and to Honolulu. By the end of the 1970s, it operate flights further into South Asia and South America.

The 1980s brings a new era for the company. CAA begun tapping into the profitable Chinese market. Air Melanesia (MEL) was formed, transferring marginally profittable CAA routes and reservicing several previously discontinued routes towards the new airlines. Caroline Aviation Group is then formed, bringing the two airlines under its umbrella. After the fall of the USSR, CAA becomes one of the first few companies to tap into the Russian market.

In the early 1990, CAA expand into the Middle Eastern market, only to be discontinued due to the Iraq-Kuwait War. CAA then focus on the Western European market, but discontinued due to the Asian Financial Crisis. The late 1990s saw a restructured CAA, cancelling its Honolulu route and lowering its presence in South America and Australia-New Zealand. Despite the restructuring, CAA and now MEL faced further disruptions following the September 11 attacks, preventing it to tap into the North American and European market. It also halt expansion plans in the Asian region, especially when the SARS outbreak hit the region greatly.

It was only 2004 onwards where another successful restructuring help CAG to soar. This period saw the creation of Air Gourmet Company, serving 9 other airlines outside of CAG. The low-cost airline market become profitable, seeing the creation of AirJoy and a co-partnership with AirAsia to form Caroline AirAsia. The fleet's maximum age lowered to 10 years, keeping a newer fleet and lowered maintenance cost. CAA finally managed to tap into the European and Middle Eastern markets, and the first North American flight to San Francisco a year later in 2005. Since then, CAG virtually tapped into all markets across the globe, dubbing it the "Most Connected Airlines in the World". In 200?, CAA became one of the first few airlines to fly the Airbus A380.

CAG continue to prosper under a new management. In Low's hand, he make a risk to purchase A350s, B787s and more A380s, totaling up to 78 new aeroplanes. In June, he announce a decision to buy over a well-established airline brand, strongly speculated to be the Singapore Airlines Group. All these planes were shelved and drained away after the Great Fornax Flod in June 2010, revealing the company's huge debt deficit. Low was found dead in October 2010, bringing in a new management and CAG filed for bankruptcy protection.

Under the administrative management, AirJoy ceased operations and might be sold to Aleksania Int. Airlines, Caroline AirAsia was sold back to AirAsia, CAA and MEL discontinue most of it's routes, mostly on the American, African, Middle Eastern and European markets. Only Air Gourmet Company remains untouched. Despite the setback, Caroline Airways Cargo was formed, partnered together with Pan American Cargo and Singapore Airlines Cargo.

CRIF would like to invest in 20% of CAG overall, and purchase a 40% stake in Air Melanesia.
This would allow Air Melanesia to continue it's Middle Eastern routes.

Will it be alright if CRIF lower its investments on CAG to 15%, and on Air Melanesia to 30%?

Air Melanesia have successfully withdrew 80% of its marginally profitable flights, which includes all Middle Eastern routes. If Air Melanesia would like to resume the Middle Eastern routes, it will take time.

All airlines under CAG is now considering expanding its Asia Pacific market, especially in South East Asia, Mainland China and Korea-Japan.