WestJet to be Acquired by Onex
May 13, 2019, 10:56 am
#31
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May 13, 2019, 10:57 am
#32
formerly smoaky
Join Date: Jan 2018
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I agree with this.
I expect that Onex will see passengers are there to be milked and for no other reason. Fees, fees, fees.
I do work for a lot of different business and and over time, several of them have been acquired by private equity funds. In each case the outcome has been bad for employees and customers.
I expect that Onex will see passengers are there to be milked and for no other reason. Fees, fees, fees.
I do work for a lot of different business and and over time, several of them have been acquired by private equity funds. In each case the outcome has been bad for employees and customers.
May 13, 2019, 11:02 am
#33
Join Date: Jan 2007
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May 13, 2019, 11:04 am
#34
Join Date: Nov 2017
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As one who has been involved in several acquisitions and observed several others up close (most of them on a much smaller scale), I also call BS on the potential changes or not. One does not spend billions of dollars on a company and leave it the way it is. Just doesn't happen. They may say that to appease those affected, but after the first year things will change.
This doesn't bode well for travellers. I can't see anything good coming out of this for us frequent flyers.
It also reminds me of the adage, "The quickest way to become a millionaire is to start off as a billionaire and buy an airline."
This doesn't bode well for travellers. I can't see anything good coming out of this for us frequent flyers.
It also reminds me of the adage, "The quickest way to become a millionaire is to start off as a billionaire and buy an airline."
-James
Last edited by FlyerTalker70; May 13, 2019 at 11:08 am Reason: Merge additional comment.
May 13, 2019, 11:12 am
#35
Join Date: Dec 2010
Posts: 125
Assuming the numbers that I have seen are correct, approximately 55% of shares were public investors, 43% were institutional investors and 1% were insiders. I don't see enough pressure to turn down the offer especially considering the premium that is being offered.
May 13, 2019, 11:18 am
#36
Join Date: Oct 2011
Location: DTW
Posts: 322
I recall the CEO mentioning the need to tap the brakes in regards to growth earlier this year:
https://calgaryherald.com/business/l...kes-at-westjet
Having said that, I wonder if this would be the catalyst for the airline to really transition from an LCC to a full-service model.
https://calgaryherald.com/business/l...kes-at-westjet
Having said that, I wonder if this would be the catalyst for the airline to really transition from an LCC to a full-service model.
May 13, 2019, 11:33 am
#37
Join Date: Apr 2016
Posts: 296
What’s the break fee like?
I’m wondering if Onex is trying to lock up WestJet with the intention of buying Air Transat and merging them.
Maybe if Onex doesn’t get Transat, they’ll let their Westjet offer lapse and pay the break fee?
Sounds like something Onex has experience with trying to do in the past, and something that would justify such a premium.
I’m wondering if Onex is trying to lock up WestJet with the intention of buying Air Transat and merging them.
Maybe if Onex doesn’t get Transat, they’ll let their Westjet offer lapse and pay the break fee?
Sounds like something Onex has experience with trying to do in the past, and something that would justify such a premium.
Last edited by tecate55; May 13, 2019 at 11:51 am
May 13, 2019, 12:08 pm
#38
Join Date: Nov 2017
Posts: 3,359
What’s the break fee like?
I’m wondering if Onex is trying to lock up WestJet with the intention of buying Air Transat and merging them.
Maybe if Onex doesn’t get Transat, they’ll let their Westjet offer lapse and pay the break fee?
Sounds like something Onex has experience with trying to do in the past, and something that would justify such a premium.
I’m wondering if Onex is trying to lock up WestJet with the intention of buying Air Transat and merging them.
Maybe if Onex doesn’t get Transat, they’ll let their Westjet offer lapse and pay the break fee?
Sounds like something Onex has experience with trying to do in the past, and something that would justify such a premium.
-James
May 13, 2019, 12:16 pm
#39
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May 13, 2019, 12:19 pm
#40
Join Date: Nov 2017
Posts: 3,359
-James
May 13, 2019, 12:55 pm
#41
Join Date: Jul 2014
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Which is an entirely different argument to "virtually no competition from the domestics"
May 13, 2019, 1:19 pm
#42
Join Date: Jul 2017
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Certainly Vancouver has more but I think Eastern Canada has pretty good options now.
Last edited by jkordyback; May 13, 2019 at 4:50 pm
May 13, 2019, 1:43 pm
#43
Join Date: Dec 2002
Posts: 8,005
I did mention in the TS thread on the AC forum that TS would most likely be bought by a pension fund.
Onex is close enough to a pension fund.
May 13, 2019, 2:03 pm
#45
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The introduction and hiking of fees is prevalent across the airline sector, no one airline (aside from perhaps WN) is immune to this. Be it AC raising the prices of economy fares through the introduction of Economy Basic, or the hiking of baggage fees across the boards by the airlines. The one thing I think may come now with Onex management is to simply match AC's practices when it comes to Basic Economy. However, what they fail to realize is that AC can pull off Basic Economy because they actual provide services customers expect and want. I doubt anyone will be upset if WS introduces Basic Economy for flights over the puddle to Europe given you have to pay for everything already!