Toronto Billy Bishop Toronto City Airport | ?m | ?s | Ports Toronto | Arup

Can't see anyone paying that sort of money for an asset which has so much uncertainty over exactly what's gonna be parking at it. A major world airport player would be a "get the popcorn out" development though - GTAA might find a competitor with significant financial and organisational heft slightly uncomfortable.
 
Any finance gurus on here who can say what sort of annual cash flows a pension plan would need from this airport to justify paying $500 million for a 19-20 year concession?
 
Grimace said:
Any finance gurus on here who can say what sort of annual cash flows a pension plan would need from this airport to justify paying $500 million for a 19-20 year concession?
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According to the WSJ article "it is being offered to buyers with the option for renewal" although that would presumably be the ground lease only.
 
dowlingm said:
According to the WSJ article "it is being offered to buyers with the option for renewal" although that would presumably be the ground lease only.
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How can Porter have rights to sell that go beyond the term of the Tripartite Agreement?
 
As it is the lounge goes overcapacity when a few flights are delayed. Customers either stand or sit on the floor. And they want to add more destinations/flights. I'm not aware that there are plans for expanding the lounge. Not enough money to add new planes and expand the airport.
 
How long until Porter itself is up for sale I wonder? Maybe soon if the terminal doesn't sell? The expansion plans, the recent service changes, and now this all have the scent of desperation to them.
 
WiddleBittyKitty said:
How long until Porter itself is up for sale I wonder? Maybe soon if the terminal doesn't sell? The expansion plans, the recent service changes, and now this all have the scent of desperation to them.
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Porter Airlines has always been for sale. Not even retail investors would buy it in 2010.
 
Grimace said:
How can Porter have rights to sell that go beyond the term of the Tripartite Agreement?
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If it's a land leasehold option they are selling, it's not a guarantee there will be a functioning airport outside the doors to the apron.
 
Grimace said:
Porter Airlines has always been for sale. Not even retail investors would buy it in 2010.
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And the failed IPO is exactly why the terminal is for sale. OMERS and Edgestone, Porter's owners want ROI, their boards and shareholders demand it. If they can't get ROI through the stock market because no one sees value in Porter, then they must begin liquidating assets. First to go will be anything not directly involved in flying aircraft, so obvious choice is the terminal. However that won't satisfy the investor owners for long, so you can expect to see landing slots sold to Air Canada or West Jet.

Next, now that it is appearing unlikely that the jets are coming (which OMERS and Edgestone desperately need if they hope to re-attempt their IPO and get their money out), options to buy further six Q400s will be cancelled. Basically anything that can at least temporarily fill the need for ROI will be attempted. Expect payroll and staffing to be hit too.
 
Admiral Beez said:
And the failed IPO is exactly why the terminal is for sale. OMERS and Edgestone, Porter's owners want ROI, their boards and shareholders demand it. If they can't get ROI through the stock market because no one sees value in Porter, then they must begin liquidating assets. First to go will be anything not directly involved in flying aircraft, so obvious choice is the terminal. However that won't satisfy the investor owners for long, so you can expect to see landing slots sold to Air Canada or West Jet.

Next, now that it is appearing unlikely that the jets are coming (which OMERS and Edgestone desperately need if they hope to re-attempt their IPO and get their money out), options to buy further six Q400s will be cancelled. Basically anything that can at least temporarily fill the need for ROI will be attempted. Expect payroll and staffing to be hit too.
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I really think you are confusing the terms ROI and cash-flow.
 
TOareaFan said:
I really think you are confusing the terms ROI and cash-flow.
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No. Cash flow is certainly an issue for Porter's continued operation, but the investors need to show some revenue or returns from their partnership in Porter. If the airline operation isn't generating a lot of profit for the investors, and there's no stock market to sell shares, then they must sell assets.
 
Admiral Beez said:
No. Cash flow is certainly an issue for Porter's continued operation, but the investors need to show some revenue or returns from their partnership in Porter. If the airline operation isn't generating a lot of profit for the investors, and there's no stock market to sell shares, then they must sell assets.
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If they paid $250 million for their leasehold interest in the terminal and it is now worth $500 million they have made a $250 million gain for their shareholders whether they sell it or hold it as a $500 million asset.....in other words, the Return on Investment is exactly the same. The only difference between selling it and holding it is the former generates cash flow..
 
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