Airline sector policy

• Airline Sector Policy
• Energy
• Finance: Bank Mergers
• Finance: Foreign Branching Legislation
• Finance: Taxation
• Infrastructure: Education
• Infrastructure: Health
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Client

A major Airline operator in Canada

Challenge

Faced with the imminent failure of one of the country's airlines, the Government of Canada suspended the operation of the Competition Act to facilitate a takeover of the failing airline. Against this backdrop, a leveraged buyout firm made a friendly offer for the failing airline and initiated a hostile takeover bid for Canada's national airline (our client). Determined to maintain its independence, our client organized to fight off the hostile bid and countered with its own offer for the failing airline.

While fending off the hostile bid, our client had to convince government regulators, shareholders of the failing airline, and its own shareholders that it was best positioned to save the failing airline. Our client also needed to convince the Federal Government that a straight market-driven approach to airline restructuring was not appropriate, and that a clear policy framework was needed to sort out the Canadian airline industry.

Strategy

We provided our client with vital insight and strategic political counsel on the Government's disposition towards the bid by the leveraged buyout firm and served as a conduit for frank messages between the Government and senior executives of our client with respect to the evolving airline policy framework. We designed a government outreach program to assist our client in reaching key MPs and Cabinet Ministers and prepared senior executives for important Parliamentary Committee appearances. We also helped our client to develop clear, targeted messages for use in its communications with the Government and the public.

Results

Success. As our client's messages gained traction, Canadians became increasingly uneasy with the bid by the leveraged buyout firm and pressure increased on the Government to take a step back and articulate clearer policy guidelines for the airline sector. Combined with other factors, our client was able to proceed and take control of the failing airline.