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Air Canada, WestJet Cabin Crew Unions implore Federal Government to ‘Let Us Work’...

Air Canada, WestJet Cabin Crew Unions implore Federal Government to ‘Let Us Work’...

Old Aug 1, 20, 12:23 am
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Air Canada, WestJet Cabin Crew Unions implore Federal Government to ‘Let Us Work’...

Air Canada, WestJet Cabin Crew Unions implore Federal Government to ‘Let Us Work’, or bail us out


https://www.businesswire.com/news/ho...0731005394/en/
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Old Aug 2, 20, 5:52 am
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With low consumer confidence in travelling , a second wave already poking through https://www.bbc.com/news/health-53579731, it is certain that there is no way the quarantine measures should nor will be relinquished anytime soon. The other part of the crews argument , however , yes the aviation industry in Canada will need a lifeline eventually, as has been done here in Europe.
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Old Aug 2, 20, 8:05 am
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Originally Posted by cirrusdragoon View Post
With low consumer confidence in travelling , a second wave already poking through https://www.bbc.com/news/health-53579731, it is certain that there is no way the quarantine measures should nor will be relinquished anytime soon. The other part of the crews argument , however , yes the aviation industry in Canada will need a lifeline eventually, as has been done here in Europe.
If this goes on much longer (it will) it would not surprise me to see many/most airlines being state owned or partially state owned. The airlines that refuse to take the medicine that come along with state "participation" will collapse.
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Old Aug 2, 20, 12:07 pm
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Originally Posted by Frequentlander View Post
If this goes on much longer (it will) it would not surprise me to see many/most airlines being state owned or partially state owned. The airlines that refuse to take the medicine that come along with state "participation" will collapse.
I expect rather than taking a direct ownership role in Canada the federal government will instead offer loans to the aviation sector as were extended to automakers in the 2008 financial crisis. I believe some sort of sector support in inevitable given the unprecedented situation.
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Old Aug 2, 20, 12:16 pm
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If there is no viable path back to profit for WestJet in the next few years, I expect Onex will cut their losses, shut the company down, sell off the assets and write down their investment, as opposed to taking on the financial burden of government loans.
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Old Aug 2, 20, 1:11 pm
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I do not believe Mr Schwartz , whom after so long finally succeeded in entering the aviation world, will be so quick to exit this market.

A vaccine will be produced , and consumer confidence will return and the crisis will diminish. The international market is estimating to fully recover to last years level of traffic in 4 years , and in North America domestically it is estimated to have recovery of domestic traffic to 2019 levels by 2023. https://www.bbc.com/news/uk-scotland...iness-53628071

I believe Mr Schwartz was quoted as saying this crisis is an opportunity.

“Our focus will be on positioning our companies to navigate this downturn and to be ready to prosper in the recovery“

Read more at: https://www.bloombergquint.com/busin...tressed-credit


After this great crisis there will most definitely be a craving for revenge discretionary spending in the public and thus new growth opportunities for the aviation sector.

In Onex’s most recent earnings call , Mr Schwartz further elaborated

our private equity portfolio has several businesses directly and negatively impacted by COVID-19. Others that will suffer varying degrees of headwinds and several that aren't really affected much at all. In each case though, our businesses are important contributors to their markets, with a strong reason to exist and to grow.”https://finance.yahoo.com/news/edite...211128278.html

I am grateful it wasn’t an asteroid that devastated the world for that would have truly decimated the frivolous world of discretionary spending.

Last edited by cirrusdragoon; Aug 2, 20 at 6:47 pm
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Old Aug 2, 20, 9:42 pm
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Originally Posted by aerobod View Post
If there is no viable path back to profit for WestJet in the next few years, I expect Onex will cut their losses, shut the company down, sell off the assets and write down their investment, as opposed to taking on the financial burden of government loans.
Shutting it down is unlikely. Letting it go into receivership and then the government can come in with a recovery plan more likely.
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Old Aug 3, 20, 4:50 am
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#RefundPassengers first, then Canadians might be willing to help.
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Old Aug 3, 20, 4:20 pm
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I can believe that the WestJet that post-Covid Canada can support as it feels the full effects of an economic crisis resulting from the policy that condo flipping and subsidized windmills are suitable substitutes for manufacturing and energy production might not be a business Onex is interested in owning but I can't foresee a situation other than total societal collapse where WestJet as an operating entity is worth less than it's constituent parts that the market is already flooded with.
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Old Aug 3, 20, 11:30 pm
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Originally Posted by tcook052 View Post
I expect rather than taking a direct ownership role in Canada the federal government will instead offer loans to the aviation sector as were extended to automakers in the 2008 financial crisis. I believe some sort of sector support in inevitable given the unprecedented situation.
Hopefully they loan out on more draconian terms than their dance with automakers. The auto industry recovered, but the government still collected only 75cents on the dollar many years later:

https://www.theglobeandmail.com/repo...ticle23828543/
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Old Aug 4, 20, 9:43 am
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Originally Posted by tecate55 View Post
Hopefully they loan out on more draconian terms than their dance with automakers. The auto industry recovered, but the government still collected only 75cents on the dollar many years later:

https://www.theglobeandmail.com/repo...ticle23828543/
I remember hearing that however think government loans are a more likely aviation industry aid vehicle than assuming partial ownership of the company. That is of course just MHO.
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