Sunwing Receives Takeover Offer

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telex
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Re: Sunwing Receives Takeover Offer

Post by telex »

boeingboy wrote: Sat Feb 06, 2021 10:37 pm
telex wrote: Sat Feb 06, 2021 10:14 pm
Yycjetdriver wrote: Sat Feb 06, 2021 10:07 pm

You thought wrong, the teal kool-aid dried up many years ago.
Looks like Sunwings has a supply all of a sudden.
Nope - no cool aid here. Just a little common sense.

But whatever - so we are getting sold to OWG, can look forward to a big paycut, and be out of business completely in 2 years.
say la vie
Are you getting sold? Or is the company getting sold? There is a difference.

The achilles tendon of vertical integration rears it's head.

C'est la vie.
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Re: Sunwing Receives Takeover Offer

Post by boeingboy »

Thanks!
Fixed the grammar. My brain must be stained from all the cool-aid!
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Re: Sunwing Receives Takeover Offer

Post by DHC-1 Jockey »

Yycjetdriver wrote: Sat Feb 06, 2021 8:09 pm 375$ million to carry them for a couple years? I find this hard to believe.
What’s their current cash on hand/burn rate? What do they owe in refunds, if any?
They lost about $100 million last year according to TUI's financial report. TUI (being public) has to disclose the numbers of their partners and subsidiaries, so it's all there if you want to take a look.
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speedah
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Re: Sunwing Receives Takeover Offer

Post by speedah »

DHC-1 Jockey wrote: Sun Feb 07, 2021 4:44 pm
Yycjetdriver wrote: Sat Feb 06, 2021 8:09 pm 375$ million to carry them for a couple years? I find this hard to believe.
What’s their current cash on hand/burn rate? What do they owe in refunds, if any?
They lost about $100 million last year according to TUI's financial report. TUI (being public) has to disclose the numbers of their partners and subsidiaries, so it's all there if you want to take a look.
Keep in mind this 100m loss was from October 1 2019 to September 30 2020, which means they were able to operate a significant portion of their winter season prior to covid shutting them down.
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Re: Sunwing Receives Takeover Offer

Post by DHC-1 Jockey »

speedah wrote: Sun Feb 07, 2021 7:12 pm Keep in mind this 100m loss was from October 1 2019 to September 30 2020, which means they were able to operate a significant portion of their winter season prior to covid shutting them down.
True, but also during the time Sunwing was operating, they were contracting out lift from other carriers due to the MAX being grounded, plus paying pilots full salary to sit at home on Reserve and do the odd flight here and there. That'll be a huge cost that Sunwing won't have again.

As well, they are in talks with Boeing for a financial settlement regarding the MAX, which I'm sure will come out in Sunwing's favour.

I know Sunwing did lose a lot of money recently, but with the airline essentially in hibernation, most of the employees laid off or on CEWS, $375 million will last a while for sure.
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boeingboy
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Re: Sunwing Receives Takeover Offer

Post by boeingboy »

As well, they are in talks with Boeing for a financial settlement regarding the MAX, which I'm sure will come out in Sunwing's favour.
Already done.

True, but also during the time Sunwing was operating, they were contracting out lift from other carriers due to the MAX being grounded, plus paying pilots full salary to sit at home on Reserve and do the odd flight here and there. That'll be a huge cost that Sunwing won't have again.
Keep in mind this 100m loss was from October 1 2019 to September 30 2020, which means they were able to operate a significant portion of their winter season prior to covid shutting them down.
Keep in mind that is the GROUP loss....not the airline - which is what we are talking about here. The unsolicited offer was for the airline. Those losses will be much smaller than $100 million. The group has so far drawn on only $50 million. Again, it's unknown what % of distribution that may be - if any right now.
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Re: Sunwing Receives Takeover Offer

Post by DHC-1 Jockey »

https://travelindustrytoday.com/perfect ... g-sunwing/

Well wasn’t the industry abuzz on Friday with headlines stemming off a Globe and Mail interview with Sunwing president and CEO, Stephen Hunter, who said the company had been “approached recently” with a takeover offer for its airline division from an unnamed suitor. Hunter told Travel Industry Today that some of his comments were taken out of context and that, “over the last twenty years Sunwing has had a lot of offers to buy the company (or pieces of it).”

The newspaper quoted Hunter as saying, “the integrated and interdependent nature of Sunwing’s divisions – the travel companies, resorts and airline – complicate the prospect of any sale.”

The airline, he said in that interview, is a vehicle in order to get package customers from point A to point B. “So, our airline really is the cost department within our tour operator. And therefore, one really can’t go without the other,”

Hunter also noted that Sunwing Vacations provides about 30 percent of the customers to its own hotels.

The Globe and Mail quoted Hunter as saying he fielded a takeover offer “years ago” from a party he declined to name. They quote an unnamed airline executive not authorized to speak publicly who said Westjet and Sunwing, “have held talks in the past.”

The article states, “It is not clear whether the recent bid is from WestJet or another company.”

Though Travel Industry Today did not discuss this with Stephen Hunter, it would seem highly unlikely that WestJet would currently be in any position to finance a takeover. Onex bought WestJet in 2019. Since then the airline, like most others, has laid off thousands of workers, cut schedules and cancelled or suspended hundreds of flights (currently – like other Canadian carriers – Westjet has cancelled all flights to the Caribbean and Mexico until April 30).

Meanwhile, the Sunwing CEO told us that with its recent agreement with the government for $375 million, Sunwing is one of the best capitalized airlines in Canada.

“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.”
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Re: Sunwing Receives Takeover Offer

Post by Cavalier44 »

More Sunwing news today:

Sunwing Strikes Resort Marketing Deal With Marriott
Sunwing Travel Group has struck a resort marketing deal with Marriott International Inc., a move that gives it exposure to the hotel giant’s much larger customer base.

Toronto-based Sunwing said 19 of its 44 resorts in Mexico and the Caribbean, including Planet Hollywood and Royalton hotels, will join Marriott’s Autograph Collection brand in the first quarter of 2021.

Financial terms were not released, and Sunwing retains ownership of the hotels. Marriott will receive an undisclosed commission for bookings made through its website, while Sunwing gains access to a broader range of clients and markets, in addition to the Marriott Bonvoy loyalty program, which has 145 million members.

Sunwing’s business includes the resorts, tour operators and Sunwing Airlines. It is 51-per-cent owned by the Hunter family, with Germany’s TUI Group owning the other 49 per cent.

Bethesda, Md.-based Marriott operates more than 7,500 hotels under 30 brands around the world.

The two companies announced the agreement amid a prolonged collapse in demand for travel due to the pandemic. Sunwing suspended its normal airline operations until April 30 after the Canadian government asked all domestic carriers to cease flying to sun destinations. It had grounded its flights from March to November last year.

Stephen Hunter, Sunwing’s chief executive officer, said he has been talking with Marriott for four years, but the pandemic underlined the need to reach an agreement. “Once the pandemic hit everybody in the travel sector, it doesn’t matter whether it’s hotels or tour operators [or] airlines, everyone kind of let their guard down a little bit and started talking to competitors more,” he said by phone.

He said the hotels were profitable again after reopening in November and December, but business has “dried up” amid the new travel restrictions.

The agreement doubles Marriott’s all-inclusive resorts portfolio and adds two destinations, St. Lucia and Antigua, while offering more choices to its loyalty program members, said Tony Capuano, Marriott’s president of global development, in a statement.

Sunwing Airlines provides about 30 per cent of the clients to the company’s hotels. Mr. Hunter said access to Marriott’s loyalty program deepens the potential pool of customers in the United States.

“If you’re a business guy and you fly to New York every week, building up points, where are you going to use those points? You’re most likely to use those points on your own personal vacations somewhere down south,” Mr. Hunter said.

Sunwing employed about 2,700 people before the pandemic and operated 12 leased Boeing 737-800s and four leased Boeing 737 Max jets.

It recently tapped a federal government loan program for $50-million and has been approved for as much as $375-million to help it weather the pandemic. Sunwing and other airlines are awaiting the announcement of a sector-specific aid program in the coming days or weeks.

The company recently fielded a takeover offer for the airline from an unnamed party, Mr. Hunter said Friday.
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Re: Sunwing Receives Takeover Offer

Post by GoHomeLeg »

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Last edited by GoHomeLeg on Tue Feb 09, 2021 4:51 pm, edited 1 time in total.
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Re: Sunwing Receives Takeover Offer

Post by mijbil »

GoHomeLeg wrote: Tue Feb 09, 2021 2:36 pm Interview with Steven Hunter:


https://www.bnnbloomberg.ca/video/2022-could-be-
even-better-than-2019-for-the-business-sunwing-ceo~2136294
Link not working
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Re: Sunwing Receives Takeover Offer

Post by GoHomeLeg »

mijbil wrote: Tue Feb 09, 2021 3:04 pm
GoHomeLeg wrote: Tue Feb 09, 2021 2:36 pm Interview with Steven Hunter:


https://www.bnnbloomberg.ca/video/2022-could-be-
even-better-than-2019-for-the-business-sunwing-ceo~2136294
Link not working

https://www.bnnbloomberg.ca/video/2022- ... eo~2136294
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Re: Sunwing Receives Takeover Offer

Post by elite »

If there was an offer from WestJet side, it wouldn’t be from any of the airlines, rather likely from Onex itself which will then consolidate it with some of its parts, possibly even add other names too. Onex has lots of cash reserve and this would be a good time for it to grow and consolidate its airlines. Sunwing already buys seats from Swoop and WestJet and this would present a good opportunity to strike a long term deal for all its lift and then focus on its core business.
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Re: Sunwing Receives Takeover Offer

Post by boeingboy »

elite wrote: Thu Feb 11, 2021 8:19 pm If there was an offer from WestJet side, it wouldn’t be from any of the airlines, rather likely from Onex itself which will then consolidate it with some of its parts, possibly even add other names too. Onex has lots of cash reserve and this would be a good time for it to grow and consolidate its airlines. Sunwing already buys seats from Swoop and WestJet and this would present a good opportunity to strike a long term deal for all its lift and then focus on its core business.
Ugh....
You obviously didn't read any thing in this thread - did you.
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Re: Sunwing Receives Takeover Offer

Post by elite »

boeingboy wrote: Thu Feb 11, 2021 10:36 pm
elite wrote: Thu Feb 11, 2021 8:19 pm If there was an offer from WestJet side, it wouldn’t be from any of the airlines, rather likely from Onex itself which will then consolidate it with some of its parts, possibly even add other names too. Onex has lots of cash reserve and this would be a good time for it to grow and consolidate its airlines. Sunwing already buys seats from Swoop and WestJet and this would present a good opportunity to strike a long term deal for all its lift and then focus on its core business.
Ugh....
You obviously didn't read any thing in this thread - did you.
I don’t know what purpose it serves to be so antagonistic?! Presumably you work for the company and you think you know everything and yes there is a new agreement.....none of that matters if it financially makes sense for the parties involved to make a deal. And regular staff certainly don’t know anything until they hear on the news that their company was sold! And yes the whole forum is speculations and rumours.....so as you were!
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