Adam Smith

Could they? Sure, if Onex wanted to fund it.

I disagree completely with this premise. Throughout its history, WS has been measured with is growth opportunities, working to find opportunities to expand in to profitable markets without taking on big risk.

What does WS not understand about selling to Quebec? Do the ad firms they hire not write good French copy?

WestJet has slowly built up its presence across the country and dipped its toe in to international routes, and managed to be quite profitable while doing so.

They cut YUL-YQB after running it for a few months when they didn't get the demand, but that's hardly evidence of a systemic inability to generate traffic in Quebec - that was a time when they were doing a poor job in a number of areas and generated their first quarterly loss in over a decade.

Don't mistake them not making Quebec a priority for not being able to do business there - they've found plenty of opportunities to eat away at market share from AC or charter operators and foreign carriers over the years, without needing to wade too deep in a market where they would need to compete with both AC and TS. As for drawing a parallel between perceived issues in Quebec and ability to market elsewhere, that's nonsense.

So, you want WestJet to buy Transat, but then keep its pilots, fleet, and brand separate. That would mean achieving no synergies between the businesses, so what's the point?

It also goes very much against WS's historic discipline on fleet types and very well defined brand.

It makes no sense.

Fiordland

As a westerner who has worked with suppliers and had customers in Montreal for decades there is a different approach in how you do B2B there. It is not significantly different. Language is part of it but there is something more.

A lot of locals don't even think of WS as an airline to consider. It is not top of mind, it does not even show up as a consideration. What ever copy their agency is providing in French is either not showing up in the right place or its not resonating with the audience. It is not doing great with the "consumer". I don't they are doing all that great winning contracts with local businesses either on the B2B side.

In years past the inflight crew would play the French recording. I think they are better now with some inflight staff that speak French. It is almost like your on an American airline in that regard.


I think they should merge the back-office stuff. That is where they are going to find synergy. What efficiencies of scale are they going to find by merging Boeing and Airbus pilots into one group? None, they are going to start bumping each other and waste more money on retraining.

The AirTransat brand is well trusted in Quebec. WestJet and WestJet Vacation are not.

WestJet cabin crew are doing better now than in years past with having some crew members that speak French. For years they had no shortage of flights into places like Montreal or Ottawa where the only French was an audio recording. Mighty as well have a separate team handling flights in/out of Montreal, Quebec City and Ottawa.

The WestJet people who are on the ground in Montreal chasing after corporates accounts. How effective have they been at that?

Fiordland

Deal is now terminated. Time to speculate on the timing and structure of the WestJet and Transat merger......

Excellent step forward for WS if they decide to look at it. That said, WestJet has been very slow to think outside the box.

tecate55

I think it's inevitable. AT was already doing poorly except as a challenger to the its competitors.

Question is, how much Onex will let AT bleed before making their offer. Unless Sunwing and TUI can put together enough money to do it, but they're probably hurting too. But money is cheap these days...

tcook052

It's TS BTW, not AT and doubt WS/Onex will make a bid as TS has an Airbus fleet which wouldn't compliment WS all-Boeing fleet (Encore excluded).

There's also likely to be some political opposition to a new non-Quebec version of TS. After the deal fell apart Quebecor CEO Pierre Karl Péladeau made it publicly known that his offer for TS still stands.

tecate55

I just don't know what PKP would do differently with Air Transat to make it viable. They were losing money in good times, and it's not like their Canadian competition was falling apart.

Having said that, reading further, Air Transat is considering it (more news in the French Media than anglo): https://www.journaldemontreal.com/20...ar-air-transat

Fiordland

There is nothing he can do. WestJet and ONEX on the other hand would do well with AirTransat.

WestJet has performed poorly in serving Montreal. They will struggle with Montreal to France routes. Owning AirTransat, integrating back-office and having a local Quebec focused brand provides value.

tcook052

The separatist Bloc Quebecois said it wanted to ensure Quebec ownership would be favored for the carrier

Symmetre

Could Westjet buy Transat? Sure.

Should they?

I guess it depends on whether that would make sense for them and how it would fit with their long-term growth strategy. They probably could get more discount holiday business out of Quebec, but is that something they want? Or need? And does it represent enough sustainable profit to warrant the cost and risk? And what are the implications of absorbing Transat's Airbus fleet into Westjet's all-Boeing operations?

My gut says they probably have enough on their plate as it is these days, between rebuilding after covid and re-launching their long-haul business ... but who knows. Would still be surprised to see them make a move on it tho.

Fiordland

ONEX owning an aircraft leasing company is in an interesting position. They own both Airbus and Boeing aircraft that need to find a home. A leasing company that will find it challenging to position slightly used aircraft with airlines. (A side question, do they look for the same traits in aircraft salesman as used car sales men?). I think it may make sense for ONEX to own a Boeing and a separate Airbus operator.

WestJet is also longer term going to looking at Paris and Amsterdam as its European gateways. Both destinations AirTransat flies to but not WestJet.

tcook052

IIRC WS was serving CDG seasonally ex YYC pre-pandemic and expect the and other routes to CDG to return in the future. WS was expanding it's Int. network as the Dreamliners came online so expect that to resume post-pandemic.

tecate55

Yeah, Westjet was getting into YHZ-CDG service until the MAX got suspended. YUL-YHZ-CDG is a nice route. Transiting through YHZ was a breeze when I took YYZ-YHZ-CDG (for the 2 weeks WJ ran it). No food and alcohol service made them very quiet flights. Literally got dumped at the gate of the next flight. Not as convenient as direct, but the summer season has a lot of demand to CDG from Canada.

Symmetre

Agree, but I just find it awkward trying to connect through CDG to go elsewhere in Europe. Would much prefer AMS, either from YHZ on the Max or out of YYZ with a 789. Guess we will see.

YYCguy

I wonder if there would be much of a market to Iceland from Canada? Would it be something WS could consider on the Max from YHZ or even YYZ in a summer (likely not this one)?

On Time Reports

A third potential suitor, Calgary-based WestJet Airlines Ltd., told the Financial Post in an email that its not considering bidding on Transat.
https://calgaryherald.com/news/three...ggling-airline