Westjet, AC and Transat
#1
Original Poster
Join Date: Jul 2014
Location: YVR
Programs: WS Nothing, AC Something, AS Gold. Too big for 737Max washrooms
Posts: 893
Westjet, AC and Transat
The AC Transat tie-up deal is approved and WestJet are not happy.
https://blog.westjet.com/flyer-bewar...o-competition/
In other news, anyone care to bet that the un-named bidder here isn't Onex?
https://www.theglobeandmail.com/busi...uyer-ceo-says/
https://blog.westjet.com/flyer-bewar...o-competition/
In other news, anyone care to bet that the un-named bidder here isn't Onex?
https://www.theglobeandmail.com/busi...uyer-ceo-says/
#2
Join Date: Jul 2003
Location: Atlanta
Posts: 5,185
The AC Transat tie-up deal is approved and WestJet are not happy.
https://blog.westjet.com/flyer-bewar...o-competition/
In other news, anyone care to bet that the un-named bidder here isn't Onex?
https://www.theglobeandmail.com/busi...uyer-ceo-says/
https://blog.westjet.com/flyer-bewar...o-competition/
In other news, anyone care to bet that the un-named bidder here isn't Onex?
https://www.theglobeandmail.com/busi...uyer-ceo-says/
#3
Join Date: Mar 2010
Location: Calgary
Posts: 1,444
I’m not so sure, merging Swoop and Sunwing into a single entity may be a market opportunity that is worth a gamble from Schwartz, especially as he has previous personal run-ins with Air Canada and may want to dominate Air Transat / Rouge in North American vacation destinations in the recovery after COVID. If it fails, he has more tax write-downs for the Onex group. The Sunwing 737-800s are as close to the Swoop config as you can get, for a common fleet type, with a swap of WS 737-800s for the MAXs that Sunwing is taking.
Onex also has a history of partial ownership of companies that it acquires, so 49% ownership of Sunwing by TUI wouldn’t be a problem in their business model.
Onex also has a history of partial ownership of companies that it acquires, so 49% ownership of Sunwing by TUI wouldn’t be a problem in their business model.
Last edited by aerobod; Feb 12, 2021 at 7:35 pm
#5
Join Date: Mar 2010
Location: Calgary
Posts: 1,444
#6
Join Date: Apr 2019
Location: Copenhagen
Programs: skyteam
Posts: 575
I’m not so sure, merging Swoop and Sunwing into a single entity may be a market opportunity that is worth a gamble from Schwartz, especially as he has previous personal run-ins with Air Canada and may want to dominate Air Transat / Rouge in North American vacation destinations in the recovery after COVID. If it fails, he has more tax write-downs for the Onex group. The Sunwing 737-800s are as close to the Swoop config as you can get, for a common fleet type, with a swap of WS 737-800s for the MAXs that Sunwing is taking.
Onex also has a history of partial ownership of companies that it acquires, so 49% ownership of Sunwing by TUI wouldn’t be a problem in their business model.
Onex also has a history of partial ownership of companies that it acquires, so 49% ownership of Sunwing by TUI wouldn’t be a problem in their business model.
#7
Join Date: Jan 2007
Programs: No single airline or hotel chain is of much use to me anymore.
Posts: 3,279
#8
Join Date: May 2015
Location: Vancouver
Programs: Aeroplan, Mileage Plus, WestJet Gold, AMEX Plat
Posts: 2,026
Potentially a long-term contract with its parent Sunwing Vacations to provide lift for the tour packages Sungwing sells.
This is the same situation as buying someone buying Jazz. The value of Jazz is not in its airline, it is in the long-term contract it has with it single major customer.
The key question, is can WestJet merge the Sunwing fleet and people into its operation, remove any redundant back-office functions and end up with an operation that is more cost effective than both companies being on their own.
This is the same situation as buying someone buying Jazz. The value of Jazz is not in its airline, it is in the long-term contract it has with it single major customer.
The key question, is can WestJet merge the Sunwing fleet and people into its operation, remove any redundant back-office functions and end up with an operation that is more cost effective than both companies being on their own.
#9
Join Date: Mar 2010
Location: Calgary
Posts: 1,444
I would say that if Onex is the bidder on Sunwing, then they have well practiced expertise across a whole raft of industries in making operations more efficient and cost effective, it is the core of their business model to turn around companies and sell them at a profit.
#10
Join Date: Apr 2019
Location: Copenhagen
Programs: skyteam
Posts: 575
They are not selling.
https://travelindustrytoday.com/perf...lling-sunwing/Although we are in the middle of a pandemic,” said Hunter, “I am very excited and optimistic about the future for Sunwing. We are positioned perfectly to continue to be the leader in vacation travel.”
As for the idea that he was looking for a buyer, the last word goes to Stephen Hunter, “I don’t play Golf and therefore I have no interest in selling the company.”
https://travelindustrytoday.com/perf...lling-sunwing/Although we are in the middle of a pandemic,” said Hunter, “I am very excited and optimistic about the future for Sunwing. We are positioned perfectly to continue to be the leader in vacation travel.”
As for the idea that he was looking for a buyer, the last word goes to Stephen Hunter, “I don’t play Golf and therefore I have no interest in selling the company.”
#11
Original Poster
Join Date: Jul 2014
Location: YVR
Programs: WS Nothing, AC Something, AS Gold. Too big for 737Max washrooms
Posts: 893
They are not selling.
https://travelindustrytoday.com/perf...lling-sunwing/Although we are in the middle of a pandemic,” said Hunter, “I am very excited and optimistic about the future for Sunwing. We are positioned perfectly to continue to be the leader in vacation travel.”
As for the idea that he was looking for a buyer, the last word goes to Stephen Hunter, “I don’t play Golf and therefore I have no interest in selling the company.”
https://travelindustrytoday.com/perf...lling-sunwing/Although we are in the middle of a pandemic,” said Hunter, “I am very excited and optimistic about the future for Sunwing. We are positioned perfectly to continue to be the leader in vacation travel.”
As for the idea that he was looking for a buyer, the last word goes to Stephen Hunter, “I don’t play Golf and therefore I have no interest in selling the company.”
#12
Join Date: Feb 2020
Posts: 1,203
Could/Should Westjet buy Air Transat ?
Westjet has historically had difficulties with the ex-Quebec market share. Almost nobody in QC buys Westjet vacations to Sun destinations, because that involves a connection via Toronto.
Buying Air Transat could help Westjet gain a foothold in QC.
Buying Air Transat could help Westjet gain a foothold in QC.
#13
Join Date: Apr 2019
Location: Copenhagen
Programs: skyteam
Posts: 575
#14
Join Date: May 2015
Location: Vancouver
Programs: Aeroplan, Mileage Plus, WestJet Gold, AMEX Plat
Posts: 2,026
WestJet is not successful in Quebec because they don't understand the cultural aspects of selling to that market. If WestJet can't figure out Quebec it has little hope of figuring out how to sell into Continental Europe, Asia or Latin America.
AirTransat has an Airbus fleet and a different pilot pool. It should keep that. Focus on having a Montreal hub and Quebec city and Ottawa as focus cities and drop any hub operations out west. WestJet and AirTransat can then codeshare with each other.