Here are five things you need to know this morning
Air Canada ramps up schedule: Air Canada is ramping up its flight schedule today as the airline continues its operational restart following a three-day flight attendants’ strike. The company says it is focusing on outbound international flights to start. The airline has cautioned that a return to full, regular service will take seven to 10 days as aircraft and crew are out of position, and that some flights will continue to be cancelled until the schedule is stabilized. It is offering customers with cancelled flights a full refund or credit for future travel if they cannot be rebooked on a competitor’s flight. Air Canada and the union representing more than 10,000 of its flight attendants struck a new tentative agreement on Tuesday morning with the help of a federal mediator.
Implications of Air Canada settlement: Meanwhile, the implications of the way the labour dispute has played out are being considered on several fronts. A settlement seems to have ended the controversial practice of only paying flight attendants for the time planes are in service. As well, after the union defied a back-to-work order, there is speculation the federal government may no longer be able to force workers in essential industries to return to their jobs. Canadian Labour Congress President Bea Bruske tells the Canadian Press that in her opinion there is now a precedent that unions can defy government back-to-work orders and find a solution at the bargaining table. “It sets a precedent for the reality that (section) 107 is no longer effective, it is effectively dead.”
Air Canada ‘top investment idea’: While the new labour agreement may increase costs for Air Canada, at least one Bay Street firm is surprisingly bullish on the airline. RBC Capital Markets is flagging Air Canada as its “top investment idea.” RBC expects free cash flow to have a “meaningful” improvement in 2028 and 2029. A report from the lender says the airline’s “strong operational performance” so far this year, despite a significant drop in transborder traffic, gives analysts increased confidence in management’s ability to execute longer-term. Capital spending is also expected to drop in the years to come.
Target replaces CEO: Shares of U.S. retailer Target were trading lower in the pre-market after the company reported another drop in sales and profit in its latest quarter. The company also announced a new CEO, with current COO, Michael Fiddelke claiming the position. There is some disappointment with the appointment, as some investors may have been hoping an outsider would take over the company’s leadership.
Canaccord to buy Australian firm: Canaccord Genuity is buying Australian financial services company Wilsons Advisory. The Canadian investment management company says Wilsons’ management will have significant involvement in the combined business. The deal is expected to boost Canaccord’s global footprint. Terms of the deal have not been disclosed.
