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Thread: Westjet sold to Onex corporation

  1. #1
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    Default Westjet sold to Onex corporation

    https://www.cbc.ca/news/canada/calga...pany-1.5133465

    WestJet says it has agreed to be acquired by Onex Corporation and will become a private company in a deal valued at $5 billion.

    Under the agreement announced Monday, Onex will pay $31 per share for WestJet, which will continue to operate as a privately held company.

    Shares in the airline closed at $18.52 on Friday.


    "I am particularly pleased that WestJet will remain headquartered in Calgary and will continue to build on the success that our 14,000 WestJetters have created," said Clive Beddoe, WestJet's founder and chairman in a news release.

    "Onex' aerospace experience, history of positive employee relations and long-term orientation makes it an ideal partner for WestJetters, and I am excited about our future."

    The deal comes after Onex approached the airline in March.

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    Well that is interesting to say the least.
    Ciao, beyond.

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    Which airline did Onex own before?
    Quote Originally Posted by schurchill39 View Post
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    Oh god, don't get him started.

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    Looks like they tried to buy air Canada and Canadian back in the day but it failed. Their experience comes from owning hawker Beechcraft and an aircraft leasing company.

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    Fucking rights. Bought a decent sized position in them a month ago. That worked out nicely!
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.

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    Many Calgarians woke up happy today

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    I bet a lot of the employees made their annual salary in a day on that.
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.

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    Onex - are they in the business of buying low-performing businesses and then selling them 5 years later? (eg. 50$ share).

    In other words, are they in it for short term gain? (ie. their analysts have identified issues they can fix and turn around)

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    You don't need an analyst for that. They charge nearly identical fares as Air Canada, but have much less quality of service.

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    Quote Originally Posted by Tik-Tok View Post
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    You don't need an analyst for that. They charge nearly identical fares as Air Canada, but have much less quality of service.
    Agreed, I have been a HUGE West Jet advocate for a very long time... But that is starting to change.

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    I wonder if ONEX will adjust WJ to go back to a LCC setup. IE focus on what USED to work for them.

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    Quote Originally Posted by revelations View Post
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    I wonder if ONEX will adjust WJ to go back to a LCC setup. IE focus on what USED to work for them.
    There isn't the same opportunity there any more in Canada.

    I think WJ is somewhat forced to move up to a full-service carrier.

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    Quote Originally Posted by revelations View Post
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    I wonder if ONEX will adjust WJ to go back to a LCC setup. IE focus on what USED to work for them.
    If anything, WJ get the capital to expand and assuming it will no longer be employee owned, they will turn into another Air Canada.

    The fact that AC is up 5% on the news means that this won't be good for consumers.

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    Financial aspect aside, I'm not happy about this. I've preferred WJ over AC since...well forever and part of that comes from the idea of supporting a Calgary based company. There's no way that goes unchanged long term, this will just be another mess headquartered out East somewhere.
    "Masked Bandit is a gateway drug for frugal spending." - Unknown303

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    Westjet will continue to be HQ’d out of Calgary.

    I think you would be very disappointed to find out how many true blue companies in Calgary are funded by PE firms out east.

    Fact is there is no REAL money in this city, it all gets funded somewhere else. This is no different.
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.

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    Quote Originally Posted by killramos View Post
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    Westjet will continue to be HQ’d out of Calgary.

    I think you would be very disappointed to find out how many true blue companies in Calgary are funded by PE firms out east.

    Fact is there is no REAL money in this city, it all gets funded somewhere else. This is no different.
    I think WJ moving out of Calgary is harder in short term but definitely possible in a decade or so later (or may be even be merged with AC , why else would someone pay such premium if they are not working towards a monopoly)
    Last edited by Xtrema; 05-13-2019 at 01:15 PM.

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    Over a long term horizon anything is possible, not even worth speculating.

    Overall, a lot of people in Calgary made a lot of money today. And the company will be run out of Calgary for the foreseeable future.

    This needs to be booked as a win for Calgary, nothing else.
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.

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    .
    Last edited by 01RedDX; 09-23-2020 at 11:38 AM.

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    Quote Originally Posted by 01RedDX View Post
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    I remember when I interviewed Clive Beddoe way back in 2000, they were just a fledgling regional airline and I was a college student doing a practicum at the Sun.

    I asked him about expansion plans and he calmly told me about going from 10 aircraft to 100 within a few months. My editor couldn't believe it at first.

    Westjet's story is pretty amazing, a Calgary upstart that managed to grow into a huge player in one of the most challenging industries.
    Airlines are relatively easy businesses to start, actually. The biggest problem in Canada, is that we have capital controls. Because we're dumb.

    Airlines are largely just customers services and marketing organizations (and some labour relations).

    Most of the fundamental services are contracted out to providers at the airport (food, maintenance, etc). Training is contracted out. The planes are leased usually.

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    Quote Originally Posted by Buster View Post
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    Airlines are relatively easy businesses to start, actually. The biggest problem in Canada, is that we have capital controls. Because we're dumb.

    Airlines are largely just customers services and marketing organizations (and some labour relations).

    Most of the fundamental services are contracted out to providers at the airport (food, maintenance, etc). Training is contracted out. The planes are leased usually.
    Most businesses are easy to start. It's making them successful that can be difficult. I'm not a fan of Westjet but it is a good story.

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