I saw on the bullboards site that Jets go was unable to secure financing, And is on its last legs?
WJ stock is up around $1.50 in one day
could this be the end?
anybody have something more concrete?
Jets Gone?
Moderators: lilfssister, North Shore, sky's the limit, sepia, Sulako, I WAS Birddog
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Pete O'static
- Rank 0
- Posts: 10
- Joined: Fri Apr 16, 2004 5:42 am
Well there might be some truth. Copied from jetsgosucks.com:
http://www.robtv.com/shows/past_archive.tv
here's some proof. Scroll down to this article,
5:00 PM ET
Squeeze Play with Amanda Lang and Kevin O'Leary
and listen to it starting at 5 min and 9 seconds into the segment
Airline industry on shaky ground
anaylst's forecast: Premature to predict any firm's demise: independent's view
Chris Sorensen
Financial Post
January 29, 2005
Canada's airline industry continues to suffer from too much supply and not enough demand, a situation one analyst says will make it difficult for Air Canada and WestJet Airlines Ltd. to grow their profits.
Ben Cherniavsky, an airline analyst with Raymond James Equity Research, said the recent industry upheaval, including the court-protected restructuring of Air Canada, the country's largest airline, has done little to make the business environment more stable.
His report criticizes industry players for contributing to the problem by relentlessly pursuing growth strategies in a mature market, calling the trend a "perversity" of the airline business.
"The overriding theme, I think, is that there are too many seats in the market," said Jon De Vos, a Raymond James analyst and a co-author of the report. "And when you have too many seats chasing too many passengers, your pricing starts to go downhill."
Mr. De Vos said the biggest casualty in the battle for the domestic market could be Jetsgo, which the report dubs the industry's "weakest link".
The Montreal-based airline was founded by airline entrepreneur Michel Leblanc. Since its launch in 2002, Jetsgo has been dogged by questions surrounding its viability, but has continued to expand its operations -- most recently into Western Canada, where rival WestJet is based. As a privately held company, Jetsgo is not required to disclose its financial results.
According to the report, WestJet could pick up low-cost business in the event of a shakeup in the sector. After years of impressive quarterly financial statements, WestJet has seen its earnings growth slow dramatically as it struggles to fill planes profitably on expanded routes.
In fact, Mr. Cherniavsky said he would be inclined to downgrade WestJet's shares to "Sell" status, if it weren't for his belief that Jetsgo was a weak link.
He argues in the report that Jetsgo's aggressive pricing strategies, such as $1 fare promotions, are responsible for its rapid growth, but that its network is spread too thin across the country to be competitive over the long-term.
As well, he speculates the airline's 160-seat MD-83 aircraft are too large for most Canadian routes and that its recent purchase of 18 Fokker F-100s, although better suited for smaller markets, have added unnecessary complexity and expenses to Jetsgo's operations.
Tom MacMillan, a spokesman for Montreal-based Jetsgo, disagreed strongly with Mr. Cherniavsky's predictions, saying the analyst's firm has been a consistent critic of the airline since its inception. "Meanwhile, we've grown from three to 25 planes, serving 28 destinations, we provide a true competition in low fares and we have half a million Canadians enrolled in our Jetsmiles loyalty program.
"We must be doing something right."
Rick Erickson, a Calgary-based independent analyst, agreed it is premature to predict Jetsgo's demise without having access to its books. "Somebody must be making some investments in them so they can go out and buy aircraft," Mr. Erickson said. "And I don't hear of any airports going out trying to garnishee their aircraft, so they must be paying their bills."
© National Post 2005
anaylst's forecast: Premature to predict any firm's demise: independent's view
Chris Sorensen
Financial Post
January 29, 2005
Canada's airline industry continues to suffer from too much supply and not enough demand, a situation one analyst says will make it difficult for Air Canada and WestJet Airlines Ltd. to grow their profits.
Ben Cherniavsky, an airline analyst with Raymond James Equity Research, said the recent industry upheaval, including the court-protected restructuring of Air Canada, the country's largest airline, has done little to make the business environment more stable.
His report criticizes industry players for contributing to the problem by relentlessly pursuing growth strategies in a mature market, calling the trend a "perversity" of the airline business.
"The overriding theme, I think, is that there are too many seats in the market," said Jon De Vos, a Raymond James analyst and a co-author of the report. "And when you have too many seats chasing too many passengers, your pricing starts to go downhill."
Mr. De Vos said the biggest casualty in the battle for the domestic market could be Jetsgo, which the report dubs the industry's "weakest link".
The Montreal-based airline was founded by airline entrepreneur Michel Leblanc. Since its launch in 2002, Jetsgo has been dogged by questions surrounding its viability, but has continued to expand its operations -- most recently into Western Canada, where rival WestJet is based. As a privately held company, Jetsgo is not required to disclose its financial results.
According to the report, WestJet could pick up low-cost business in the event of a shakeup in the sector. After years of impressive quarterly financial statements, WestJet has seen its earnings growth slow dramatically as it struggles to fill planes profitably on expanded routes.
In fact, Mr. Cherniavsky said he would be inclined to downgrade WestJet's shares to "Sell" status, if it weren't for his belief that Jetsgo was a weak link.
He argues in the report that Jetsgo's aggressive pricing strategies, such as $1 fare promotions, are responsible for its rapid growth, but that its network is spread too thin across the country to be competitive over the long-term.
As well, he speculates the airline's 160-seat MD-83 aircraft are too large for most Canadian routes and that its recent purchase of 18 Fokker F-100s, although better suited for smaller markets, have added unnecessary complexity and expenses to Jetsgo's operations.
Tom MacMillan, a spokesman for Montreal-based Jetsgo, disagreed strongly with Mr. Cherniavsky's predictions, saying the analyst's firm has been a consistent critic of the airline since its inception. "Meanwhile, we've grown from three to 25 planes, serving 28 destinations, we provide a true competition in low fares and we have half a million Canadians enrolled in our Jetsmiles loyalty program.
"We must be doing something right."
Rick Erickson, a Calgary-based independent analyst, agreed it is premature to predict Jetsgo's demise without having access to its books. "Somebody must be making some investments in them so they can go out and buy aircraft," Mr. Erickson said. "And I don't hear of any airports going out trying to garnishee their aircraft, so they must be paying their bills."
© National Post 2005
Nope no pot stiring here.
Just some (stock in ACE and WJ) curious information, and a genuine interest to see if it is true or a load of crap. I have a lot of friends at SG. Iwould hate to see them get hurt.
By the way Pete 'O
who are you ? as you seem to know me.
Just some (stock in ACE and WJ) curious information, and a genuine interest to see if it is true or a load of crap. I have a lot of friends at SG. Iwould hate to see them get hurt.
By the way Pete 'O
who are you ? as you seem to know me.
"Hey pile it, you wanna hold my bottle?"
Ok, so it seems very simple to me. We all know it, there are too many airlines in Canada for the size of the market. So what I can't figure out is why anyone would start-up another airline (namely JetsGo)? Do these people really think that starting an airline is good investment plan? I would think that anyone with money to invest would want to stay as far awa from aviation a possible, well atleast the airline side of things.
I'm sure it really is more complicated than I make it out, but really why start an airline like JetsGo?????
I'm sure it really is more complicated than I make it out, but really why start an airline like JetsGo?????
Its easy to understand...Ask the Canjet guy! Build up your business, threaten the larger players with loss of market share and then get bought out after you've gone public. If you can, get a lot of government help enroute, so your initial investment isn't as large as it might otherwise need to be.
It worked for Island Airlines/Haida Airlines/Airspan too (threw that in for the West Coasters out there); Wardair; PWA; Time Air etc.
With the cyclical nature of this business and the VERY high costs, that seem to be the only way to make a buck...that's why the seniority system is only worthwhile for the absolute largest outfits. Everyone else gets lots of RUOs in this business.
It worked for Island Airlines/Haida Airlines/Airspan too (threw that in for the West Coasters out there); Wardair; PWA; Time Air etc.
With the cyclical nature of this business and the VERY high costs, that seem to be the only way to make a buck...that's why the seniority system is only worthwhile for the absolute largest outfits. Everyone else gets lots of RUOs in this business.
"What's it doing now?"
"Fly low and slow and throttle back in the turns."
"Fly low and slow and throttle back in the turns."
JetsGo started almost 3 yrs ago, so I'm not quite sure what you mean. If there is overcapacity it doesn't mean one company is going to shut down, it means other routes have to be looked at and my guess would be transborder. It is simply a pissing contest. WJ was trying to expand east, and SG said oh ya..we will expand westbound. WJ has scaled back in the east and SG has done the same in the west.
The comments from the analyst came during a conference in New York, and it was the same crap last year in which clive told everyone that SG was about to go under and couldn't secure capital. A month later SG announced a 25 million dollar investor and a huge expansion with the Fokker-100. So who do you believe? Watch for WJ's performance for last quarter and the stock will right itself.
The comments from the analyst came during a conference in New York, and it was the same crap last year in which clive told everyone that SG was about to go under and couldn't secure capital. A month later SG announced a 25 million dollar investor and a huge expansion with the Fokker-100. So who do you believe? Watch for WJ's performance for last quarter and the stock will right itself.
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Glen Quagmire
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- Joined: Sat Jan 29, 2005 3:32 pm
- Location: YYZ
People shouldn't beleive everything they read in the paper or hear on TV. This Western based analyst speculates that Jetsgo is in financial trouble over rumors out of NY that they are having problems securing financing. Perhaps this analyst has a large amount of Westjet stock, if he did would he lose all credibility? seeing as this article caused WJ stocks to surge more than 12%. His analysis is pure speculation and should be taken with a grain of salt
The problem with all this is that Jetso is a privately held company, anything reported about their finances are rumors and hearsay.
In my opinion Westjetters should steer clear of these posts, conflict of interest is an understatement, we all know who would benefit the most from SG going down.
The problem with all this is that Jetso is a privately held company, anything reported about their finances are rumors and hearsay.
In my opinion Westjetters should steer clear of these posts, conflict of interest is an understatement, we all know who would benefit the most from SG going down.
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talkinghead
- Rank 4
- Posts: 237
- Joined: Tue Jan 04, 2005 6:14 am
http://www.theglobeandmail.com/servlet/ ... TopStories
WestJet shares gain on rumours of trouble at Jetsgo
By Brent Jang
Saturday, January 29, 2005 - Page B6
WestJet Airlines Ltd. shares rose 12 per cent yesterday in heavy trading after a leading industry analyst questioned rival Jetsgo Corp.'s ability to stay in business, calling it "the weakest link" in Canada's airline industry.
The buzz about Jetsgo spilled into trading in Air Canada's parent company, ACE Aviation Holdings Inc., whose shares spiked up in the last hour of trading on the Toronto Stock Exchange. ACE shares, which had been languishing for the past week, gained 4 per cent on the day.
Raymond James Ltd. analyst Ben Cherniavsky had severe doubts about Montreal-based Jetsgo's expansion strategy and how it can stave off brutal competition from Air Canada, WestJet and CanJet Airlines.
Jetsgo spokesman Brad Cicero played down speculation about the privately owned carrier's possible demise, saying that there are many "positives," such as Jetsgo's rapid growth since it got into the low-cost airline game in mid-2002.
"The airline industry is full of rumours," Mr. Cicero said. "People are still flying Jetsgo. We're going to look for opportunities to grow."
But Mr. Cherniavsky, the lead author of a new 76-page report on the country's airline sector, said this year is shaping up to be one where seat capacity will grow faster than demand, "until the weakest link breaks." He said Calgary-based WestJet would be the main beneficiary if Jetsgo were forced out of business.
Investors piled into WestJet yesterday, with volume of nearly 1.4 million shares, or five times its average daily volume on the TSX.
"We haven't released any information that would cause the price rise," said WestJet spokeswoman Siobhan Vinish, who added that the discount carrier didn't wish to comment further on "fluctuations in our stock price."
WestJet chief executive officer Clive Beddoe spoke about his airline Thursday at a New York aviation conference sponsored by Raymond James, she said.
In his report, Mr. Cherniavsky speculated that if Jetsgo vanished from the domestic market on April 1, then seat capacity would fall 2.4 per cent instead of rising 5.4 per cent.
Amid high jet fuel prices, cutthroat fares and aging Jetsgo aircraft, "there is indeed a good chance that Jetsgo will disappear," he wrote. "We believe Jetsgo has spread its network too thin."
Two U.S. hedge fund managers, who declined to be named, said they had acquired WestJet shares yesterday in the hopes of benefiting from the Jetsgo rumours. While there has been talk about Jetsgo running into trouble before, they said speculation intensified after Mr. Beddoe's visit to New York.
WJA (TSX) gained $1.56 to $14.13. ACE.B (TSX) climbed $1.23 to $34.50. Brent Jang
WestJet shares gain on rumours of trouble at Jetsgo
By Brent Jang
Saturday, January 29, 2005 - Page B6
WestJet Airlines Ltd. shares rose 12 per cent yesterday in heavy trading after a leading industry analyst questioned rival Jetsgo Corp.'s ability to stay in business, calling it "the weakest link" in Canada's airline industry.
The buzz about Jetsgo spilled into trading in Air Canada's parent company, ACE Aviation Holdings Inc., whose shares spiked up in the last hour of trading on the Toronto Stock Exchange. ACE shares, which had been languishing for the past week, gained 4 per cent on the day.
Raymond James Ltd. analyst Ben Cherniavsky had severe doubts about Montreal-based Jetsgo's expansion strategy and how it can stave off brutal competition from Air Canada, WestJet and CanJet Airlines.
Jetsgo spokesman Brad Cicero played down speculation about the privately owned carrier's possible demise, saying that there are many "positives," such as Jetsgo's rapid growth since it got into the low-cost airline game in mid-2002.
"The airline industry is full of rumours," Mr. Cicero said. "People are still flying Jetsgo. We're going to look for opportunities to grow."
But Mr. Cherniavsky, the lead author of a new 76-page report on the country's airline sector, said this year is shaping up to be one where seat capacity will grow faster than demand, "until the weakest link breaks." He said Calgary-based WestJet would be the main beneficiary if Jetsgo were forced out of business.
Investors piled into WestJet yesterday, with volume of nearly 1.4 million shares, or five times its average daily volume on the TSX.
"We haven't released any information that would cause the price rise," said WestJet spokeswoman Siobhan Vinish, who added that the discount carrier didn't wish to comment further on "fluctuations in our stock price."
WestJet chief executive officer Clive Beddoe spoke about his airline Thursday at a New York aviation conference sponsored by Raymond James, she said.
In his report, Mr. Cherniavsky speculated that if Jetsgo vanished from the domestic market on April 1, then seat capacity would fall 2.4 per cent instead of rising 5.4 per cent.
Amid high jet fuel prices, cutthroat fares and aging Jetsgo aircraft, "there is indeed a good chance that Jetsgo will disappear," he wrote. "We believe Jetsgo has spread its network too thin."
Two U.S. hedge fund managers, who declined to be named, said they had acquired WestJet shares yesterday in the hopes of benefiting from the Jetsgo rumours. While there has been talk about Jetsgo running into trouble before, they said speculation intensified after Mr. Beddoe's visit to New York.
WJA (TSX) gained $1.56 to $14.13. ACE.B (TSX) climbed $1.23 to $34.50. Brent Jang
