WestJet to be sold in friendly deal to Onex Corp. for $5 billion

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Heliian
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by Heliian » Thu May 16, 2019 7:43 am

Biff wrote:
Thu May 16, 2019 7:00 am
Victory wrote:
Thu May 16, 2019 6:47 am
Oops, the plan for WestJet world domination just got cut short. What's for lunch today?
Buying new 787’s from a company called Boeing, maybe???
Lol, at over 200 million per a/c, they can't afford it. Their current 787 is on a leaseback.
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by Diadem » Thu May 16, 2019 10:03 am

Victory wrote:
Thu May 16, 2019 6:47 am
What's for lunch today?
I don't know; AC just ate it.
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by 3down&loct » Thu May 16, 2019 3:47 pm

tbaylx wrote:
Mon May 13, 2019 7:28 am
goingnowherefast wrote:
Mon May 13, 2019 7:25 am
Privately owned companies can still have employee stock options. I know of at least one (non aviation) company that does it. Rules are a little more complicated, but it's still viable.

Hopefully they see the mess that is swoop and kill it before it wastes more money.
If I was an employee holding shares i'd be selling them this morming with the jump. If the government or competition bureau kills the deal they'll be back at $18 in a heartbeat.
Would not agree with that. Onex feels WJ is worth 31$. I would say if deals fall through you would see the price somewhere down the middle around 25.
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by brooks » Thu May 16, 2019 9:15 pm

Hey, lunch is like eating ACs routes and customers for friendlier Western Canadian approach to international travel. Unlike this Merger between two competitors (which has a greater chance of not happening btw) the Onex purchase is just a guy with lots and lots of money about to give WJ the cash and the means to wipe out ACs profitable routes.
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by pianokeys » Fri May 17, 2019 2:05 am

brooks wrote:
Thu May 16, 2019 9:15 pm
Onex purchase is just a guy with lots and lots of money about to give WJ the cash and the means to wipe out ACs profitable routes.
Im just going to leave this here.
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by brooks » Fri May 17, 2019 5:51 am

https://www.onex.com/portfolio
I’ll just leave that here too.
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by flashheart » Fri May 17, 2019 7:16 am

Brooks, I’ll leave this here




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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by complexintentions » Fri May 17, 2019 8:25 am

jpilot77 wrote:
Tue May 14, 2019 12:02 am
My bet isn’t that Onex sells off Encore it’s that they buy Transat and merge it into Westjet.
Hope you didn't bet too much.

Who is this brooks clown?

Air Canada has just bought a company.
WestJet has just been bought by a company.

I know the words sorta sound like the same thing, but they're really not.
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by sportingrifle » Fri May 17, 2019 8:33 am

What is the value of WJ, Encore, Swoop, and WestJets rewards program if they are divided up and sold off? I hope for all my teal friends that it is less than $5Bn. - I have seen this movie before.
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by pianokeys » Fri May 17, 2019 8:41 am

brooks wrote:
Fri May 17, 2019 5:51 am
https://www.onex.com/portfolio
I’ll just leave that here too.
Half of the companies on that list dont exist anymore.
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by C-GGGQ » Fri May 17, 2019 10:24 am

pianokeys wrote:
Fri May 17, 2019 8:41 am
brooks wrote:
Fri May 17, 2019 5:51 am
https://www.onex.com/portfolio
I’ll just leave that here too.
Half of the companies on that list dont exist anymore.
:up: exactly.
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by brooks » Sat May 18, 2019 12:22 pm

Lol wow.
Hey remember AC makes its money on international routes. Last I checked WJ is probably going to action all 20 787s and probably many more widebodies past that. Enjoy the show.
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by Sharklasers » Sat May 18, 2019 1:15 pm

brooks wrote:
Sat May 18, 2019 12:22 pm
Lol wow.
Hey remember AC makes its money on international routes. Last I checked WJ is probably going to action all 20 787s and probably many more widebodies past that. Enjoy the show.
Last time you checked with who? Was that before or after you guys got picked up by the chop shop?

Your soft product is hot garbage and for now at least most business travellers would rather swim to england than take your 'friendly western canadian' operation into Gatwick.

I have no doubt that AC and Westjet are probably going to spend the next 5 years beating the shit out of eachother but westjet hasnt achieved the traction it was hoping for on the international and it isnt from lack of trying or lack of funds, what will change now?
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Last edited by Sharklasers on Sat May 18, 2019 2:23 pm, edited 1 time in total.

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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by Fanblade » Sat May 18, 2019 1:56 pm

brooks wrote:
Sat May 18, 2019 12:22 pm
Lol wow.
Hey remember AC makes its money on international routes. Last I checked WJ is probably going to action all 20 787s and probably many more widebodies past that. Enjoy the show.

You do know WJ is now on credit watch, right? Although it is too soon to tell, the credit agencies know how Onex works. They make sure all, or almost all, the risk remains on the books of the purchased entity. Not on Onex itself. Heck they may even take WJ’s own cash to buy WJ. The credit rating agencies know it.

IOW the WJ balance sheet will change drastically overnight. You will no longer be permitted to see the balance sheet. You will never really know how this played out.

Do not expect a handout from Onex. They will make it clear WJ must remain profitable, and grow profitability, on its own. End of story.

Been through it. It feels like betrayal, but it’s not. You suddenly realize it’s just business. Everything from the beginning was really just business. Somebody else just made a bunch of $ and left you a sh!t sandwich. Now a new owner wants you to start all over on their behalf.

And you know what. You have no choice.

Been there.
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by Fanblade » Sat May 18, 2019 2:14 pm

Sharklasers wrote:
Sat May 18, 2019 1:15 pm

I have no doubt that AC and Westjet are probably going to spend the next 5 years beating the shit out of each but westjet hasnt achieved the traction it was hoping for on the international and it isnt from lack of trying or lack of funds, what will change now?
It is the curse of publicly traded companies that they must always be growing or else their stock stagnates or drops. A privately held company doesn’t have that problem. For them whatever is most profitable is the best course. Stagnating in what works and is profitable is fine

What is most profitable for the new owners is what will happen. What they think that is I don’t know. But we will soon find out. But it is not a forgone conclusion of growth. It may be a return to basics. Make money. Pay down the purchase debt. Resell down the road.
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by brooks » Sat May 18, 2019 2:40 pm

It is on a credit watch because up until a few days ago it was thought that WJ might buy AT. Read the report from Moody's. Now AC gets to have fun with that. WJ has $1.3 Billion in the bank and less than half the airplanes that AC fly's. Most likely a credit upgrade considering they are flying full and fares have increased since the MAX problem.

Calling the 787 business class hot garbage just shows the level of intelligence on that matter you seem to have. I would brush up on this deal and see how it benefits WJ. She will grow and become a big thorn in Calin's a** hence the hasty AT purchase he made.
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by Sharklasers » Sat May 18, 2019 2:54 pm

Westjet is on credit watch because ONEX is going to load up the balance sheet with the purchase debt like they have done repeatedly in the past.

https://www.theglobeandmail.com/busines ... n-wake-of/
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by Fanblade » Sat May 18, 2019 2:56 pm

Brooks,

The credit watch is all about Onex.

WJ currently has 1.3 billion in the bank. Ater the Onex deal? Onex can do as they please with it and you will never be the wiser.

There is a reason Onex wants to take WJ private. In a public company the BOD has a fiduciary duty to the shareholders. A private company has no such duty.

Ask yourself. Why private? Why pass on all the investment capital shareholders bring to the table? What do they have planned that requires getting rid of the fiduciary duty to shareholders.

This is why the credit watch.
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by brooks » Sat May 18, 2019 6:26 pm

There is no desperate need to take the company public again once it purchased by Onex. Being a private company as Ed put it doesn’t require this constant nagging by speculators and analyst to see how the company is doing. Decisions can be made without worrying about morons on BNN telling people it doesn’t sit well with them etc. SpaceX is a good example of getting sh** done without worrying about the stock price dropping on speculation. WJ will go public again I have no doubt but not for awhile. By that time people will be wondering why ACs balance sheet is eroding and profits are drying up.
Have fun with Quebec. :lol:

Kenny just lowered the Corporate tax rate.
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Last edited by brooks on Sat May 18, 2019 6:30 pm, edited 1 time in total.

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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by aerobod » Sat May 18, 2019 6:28 pm

WestJet currently has a Moody’s overall corporate credit rating of Ba1, compared with the lower rating of Ba2 that Air Canada has. If it is lowered it will most likely be to Ba2, giving it the same ability as Air Canada to access credit, outside of any credit provided from within the Onex portfolio.
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by '97 Tercel » Sun May 19, 2019 12:47 pm

...for friendlier Western Canadian approach to international travel
:lol:
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by iflyforpie » Sun May 19, 2019 1:49 pm

brooks wrote:
Sat May 18, 2019 6:26 pm
Kenny just lowered the Corporate tax rate.
Which means Quebec will get more equalization because Albertans don’t understand how federal transfers are calculated and the provincial coffers will be empty. But the important thing is that the wealthy will be taken care of.
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Geez did I say that....? Or just think it....?

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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by Heliian » Sun May 19, 2019 3:16 pm

Fanblade wrote:
Sat May 18, 2019 2:56 pm
Brooks,

The credit watch is all about Onex.

WJ currently has 1.3 billion in the bank. Ater the Onex deal? Onex can do as they please with it and you will never be the wiser.

There is a reason Onex wants to take WJ private. In a public company the BOD has a fiduciary duty to the shareholders. A private company has no such duty.

Ask yourself. Why private? Why pass on all the investment capital shareholders bring to the table? What do they have planned that requires getting rid of the fiduciary duty to shareholders.

This is why the credit watch.
That doesn't ever cover the 1.5 billion in debt they're buying. Not to mention the 3 or so billion in obligations.
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by Mach1 » Mon May 20, 2019 12:13 pm

I have heard that Clive is going to take the money from this sale and team up with Tim to finally launch that new Ultra Low Cost Carrier. I heard Mark is joining in and they will be flying NEO's. AC and WJ's days are numbered.
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Re: WestJet to be sold in friendly deal to Onex Corp. for $5 billion

Post by Victory » Mon May 20, 2019 12:21 pm

Mach1 wrote:
Mon May 20, 2019 12:13 pm
I have heard that Clive is going to take the money from this sale and team up with Tim to finally launch that new Ultra Low Cost Carrier. I heard Mark is joining in and they will be flying NEO's. AC and WJ's days are numbered.
Would you go fly for them? If they gave stock options you might be a millionaire.
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