
TSE:AC
One of his best stocks last year. Cheap, trades at only 10x earnings. Airlines have seen consolidation which has benefited all companies, making them more efficient. AC offers good growth and has signed a labour agreement that reduces cost structure. Fuel costs are stable, another plus. AC has nearly $3 billion in excess cash to grow their business or buyback shares. AC carries little debt. Also, AC has execution risk buying Westjet. Overall, AC is well-run. Airlines now remind him of when the rails were consolidating after many bad years then became more efficient and profitable.
Aeroplan is making changes to this points program which is upsetting cardholders. Trades at 10x earnings, cheaper than American peers. They've done a great job executing well. The airlines have consolidated a lot. Loyalty plans will continue to change; they're so pervasive that the plans have the power to change them. TD now has access to this plan.