WestJet statement on Goverment funding for AC

[shawnthesheep]

https://www.westjet.com/en-ca/news/2021 ... 3A20210413

[simply_no_one]

Lol high horse much? Give me a fucking break.

[Hangry]

Pathetic

[fish4life]

What’s pathetic about the statement?

[TheStig]

The first 3 paragraphs.

[Yycjetdriver]

Early in the pandemic the same CEO played the sympathy card in the media, saying how devastated their business is and announcing the permanent reduction of many positions for cheaper outsourcing options (csa’s, ramp staff and call centre employees) across the country, in addition to the many temporary layoffs. Then an hour after support for your competitor is announced, that ensures job protection, that same CEO feels the need to made a public statement like that. Very unnecessary.

[Hangry]

I didn’t think there were any kool aid fanboys left.

[Launchpad1]

I don't see any issue with that. It's just a statement of fact.

[“”Bob””]

And that’s how capitalism works.

I’m sure that the unemployed at Air Canada are just overjoyed that the Nomenklatura there only get 20 pilot salaries worth of compensation with their tax dollars that the government says will be returned... .but like a kid who’s grounded for a month that you see riding his bike the next Friday.........I somehow doubt it.

[RRJetPilot]

I didn’t think there were any kool aid fanboys left.

Brooks? Hes been quite lately.

[Hangry]

I didn’t think there were any kool aid fanboys left.

Brooks? Hes been quite lately.

Too busy eating AC’s lunch I guess. Maybe it gave him heartburn?

[Yycjetdriver]

I don't see any issue with that. It's just a statement of fact.

I just think coming out right away saying that after months of playing the sympathy card while making permanent reductions isn’t needed.
I get the decision by Onex to not take a similar package, they’re not hurting for cash so there’s no reason for them to give the government a stake in Westjet.

[redbusdriver]

wait for westjet to soon get a gov't loan, and release a statement saying "we didn't need it, but we'll take it anyways"

[redbusdriver]

I didn’t think there were any kool aid fanboys left.

Brooks? Hes been quite lately.

Too busy eating AC’s lunch I guess. Maybe it gave him heartburn?

we are a hearty meal

[altiplano]

wait for westjet to soon get a gov't loan, and release a statement saying "we didn't need it, but we'll take it anyways"

I think the thing is that Onex has cash and access to cash at better rates than the Federal program offers. They don't want to have to do things like guarantee service to money losing routes, or guarantee employment numbers, or do anything that will take control away and reduce their competitiveness... or cap Schwartz's salary...

They would take direct subsidy, or free cash bailout, but why take money they have to pay back when they can get it without the strings attached for less of they need it.

[redbusdriver]

wait for westjet to soon get a gov't loan, and release a statement saying "we didn't need it, but we'll take it anyways"

I think the thing is that Onex has cash and access to cash at better rates than the Federal program offers. They don't want to have to do things like guarantee service to money losing routes, or guarantee employment numbers, or do anything that will take control away and reduce their competitiveness... or cap Schwartz's salary...

They would take direct subsidy, or free cash bailout, but why take money they have to pay back when they can get it without the strings attached for less of they need it.

good point

[fish4life]

I wouldn’t be surprised if they get low interest loans for an order of Quebec made A220’s

[notwhoyouthinkIam]

wait for westjet to soon get a gov't loan, and release a statement saying "we didn't need it, but we'll take it anyways"

I think the thing is that Onex has cash and access to cash at better rates than the Federal program offers. They don't want to have to do things like guarantee service to money losing routes, or guarantee employment numbers, or do anything that will take control away and reduce their competitiveness... or cap Schwartz's salary...

They would take direct subsidy, or free cash bailout, but why take money they have to pay back when they can get it without the strings attached for less of they need it.

Air Canada was offered a line of credit. If WestJet gets a similar offer, why would they refuse it?

Having access to cash (that they're not forced to draw from) is something that they would be dumb to refuse, unless it had some concessions that would make it more costly.

[tbaylx]

wait for westjet to soon get a gov't loan, and release a statement saying "we didn't need it, but we'll take it anyways"

I think the thing is that Onex has cash and access to cash at better rates than the Federal program offers. They don't want to have to do things like guarantee service to money losing routes, or guarantee employment numbers, or do anything that will take control away and reduce their competitiveness... or cap Schwartz's salary...

They would take direct subsidy, or free cash bailout, but why take money they have to pay back when they can get it without the strings attached for less of they need it.

Air Canada was offered a line of credit. If WestJet gets a similar offer, why would they refuse it?

Having access to cash (that they're not forced to draw from) is something that they would be dumb to refuse, unless it had some concessions that would make it more costly.

Because it came with a 15% equity stake and other strings attached.

[altiplano]

wait for westjet to soon get a gov't loan, and release a statement saying "we didn't need it, but we'll take it anyways"

I think the thing is that Onex has cash and access to cash at better rates than the Federal program offers. They don't want to have to do things like guarantee service to money losing routes, or guarantee employment numbers, or do anything that will take control away and reduce their competitiveness... or cap Schwartz's salary...

They would take direct subsidy, or free cash bailout, but why take money they have to pay back when they can get it without the strings attached for less of they need it.

Air Canada was offered a line of credit. If WestJet gets a similar offer, why would they refuse it?

Having access to cash (that they're not forced to draw from) is something that they would be dumb to refuse, unless it had some concessions that would make it more costly.

I think I said why they might refuse it.

Conditions that restrict their competitiveness.

[Old fella]

Well if WJ isn’t interested in terms and conditions of taxpayer dollars and they(WJ) think there are better ways through their own resources, good on WJ I would venture. Let the chips fall where they may as time progresses.

[redbusdriver]

WestJet CEO Ed Sims says the federal government’s aid package for Air Canada could be “problematic” unless his company gets equitable treatment, as talks over pandemic relief continue between Ottawa and Canadian carriers.

https://canadianaviationnews.wordpress. ... s-drag-on/

he's more indecisive than doug ford

[Cavalier44]

WestJet CEO Ed Sims says the federal government’s aid package for Air Canada could be “problematic” unless his company gets equitable treatment, as talks over pandemic relief continue between Ottawa and Canadian carriers.

https://canadianaviationnews.wordpress. ... s-drag-on/

he's more indecisive than doug ford

Indecisive in what way? If WestJet is going to receive government support, they will understandably want it to be on the same terms as Air Canada's deal. With the government set to take roughly a 10% stake in their main competitor, I'm sure that WestJet is concerned that they're going to be put in a position where they're competing with a now government-backed Air Canada, which controls nearly half of the domestic Canadian market share.

If I were in Ed Sims' shoes, I know that I'd want assurances that whatever aid WestJet was to receive would result in the government also taking a similar equity stake (assuming that were palatable to Onex), or granting some other type of offset in order to stop Air Canada from gaining an unfair competitive advantage.

[rudder]

Indecisive in what way? If WestJet is going to receive government support, they will understandably want it to be on the same terms as Air Canada's deal. With the government set to take roughly a 10% stake in their main competitor, I'm sure that WestJet is concerned that they're going to be put in a position where they're competing with a now government-backed Air Canada, which controls nearly half of the domestic Canadian market share.

If I were in Ed Sims' shoes, I know that I'd want assurances that whatever aid WestJet was to receive would result in the government also taking a similar equity stake (assuming that were palatable to Onex), or granting some other type of offset in order to stop Air Canada from gaining an unfair competitive advantage.

Does WJ/ONEX have assets to put up for security? Does WJ/ONEX have the ability to offer an equity stake at a discount with upside potential for ROI?

I am certain an unsecured loan is available to offer ticket refunds on the same terms as AC. LEEFF loans are also available.

And don’t forget the restrictions on dividends, stock buy backs, and Executive compensation.

Have at ‘er.

[Cavalier44]

Indecisive in what way? If WestJet is going to receive government support, they will understandably want it to be on the same terms as Air Canada's deal. With the government set to take roughly a 10% stake in their main competitor, I'm sure that WestJet is concerned that they're going to be put in a position where they're competing with a now government-backed Air Canada, which controls nearly half of the domestic Canadian market share.

If I were in Ed Sims' shoes, I know that I'd want assurances that whatever aid WestJet was to receive would result in the government also taking a similar equity stake (assuming that were palatable to Onex), or granting some other type of offset in order to stop Air Canada from gaining an unfair competitive advantage.

Does WJ/ONEX have assets to put up for security? Does WJ/ONEX have the ability to offer an equity stake at a discount with upside potential for ROI?

I am certain an unsecured loan is available to offer ticket refunds on the same terms as AC. LEEFF loans are also available.

And don’t forget the restrictions on dividends, stock buy backs, and Executive compensation.

Have at ‘er.

I don't have the answers to those questions, and I'm sure that WestJet and Onex are trying to determine the answer to each of those as well, and whether or not they would result in an acceptable deal for the company.

My response was to the post above, where the poster claimed that Ed Sims was indecisive. On the contrary, I think that his public statement is understandable - he wants to be sure that there's going to be a level playing field going forward for all the airlines vis-a-vis their relationship with the government.

If anything, I think there's probably more of a "have your cake and eat it too" mentality at play here, which may explain why WJ/Onex have not yet secured a deal. They want to be sure that there are going to be comparable terms at the negotiating table, but on the other hand, as you say Rudder, what are they willing to offer up in return? Time will tell.