I agree in the short term AC might do well... even hit $4 but they have some major problems ahead of them... namely competition from WestJet.
1. AC has a lot of good will and sentiment to restore after the "WildCat" strikes. Anyone who got caught up in that won't forget it so easily.
2. AC says they want to increase flights in Western Canada but why does Edmonton for example have only one major international flight from AC? This is a city growing almost 10% a year and has a million people.
3. WestJet is developing a business class section. Do you think all that Calgary $$$ wants to fly on an Eastern carrier once they get business class?
4. Right now AC has a monopoly on all major international routes to Europe, Asia, Africa, South America and elsewhere. What's going to happen when WestJet starts flying there? AC will lose market share just like it did to WJ domestically and transborder.
5. WestJet stock has split 3 times in the past? Think it might happen again?
There's a multitude of other reasons staffing and union problems, retired employees benefits.... yadayadayada...
AC... doesn't stand much of a chance... in my humble opinion only.