Holy Surprise Batman

[stickontheice]

Q3 numbers were off the board! I was just reading about how WJ was going to disappoint the market with Q3 numbers. Guess that's been put to rest. Share buy back and paying a dividend were both pleasant surprises as well. Looks like the stock is responding well.

[Brick Head]

As big a story here is the $20 dollar charge for the second bag. In the US ancillary revenue has been very large from bag fees. AC could never do this without WJ moving first.

My guess is AC can't move fast enough to get the same policy in place.

By the way nice burying the negative consumer news in with positive shareholder news.

Well played.

[whiteguy]

Something doesn't add up, 22 profitable quarters and adding a fee for the second bag? When AC had previously done this they were in financial trouble. Pretty fishy if you ask me! Can't wait to see how the Westjetters spin this one. Guess it'll cost a bit more now adjusting all the advertising about free baggage out there.

[Batman]

Nice quarter WJ. Good to see some rewards heading to some very patient shareholders in the way of the dividend and share buy back. Perhaps in lieu of previous more aggressive expansion plans. Not exactly good news for those hoping for a new a/c type or a speedy upgrade. A sound business decision just the same and good use of the cash on the balance sheet. Nothing fishy here I'm afraid just good business. Congratulations enjoy the fall profit share.

[Brick Head]

Something doesn't add up, 22 profitable quarters and adding a fee for the second bag? When AC had previously done this they were in financial trouble. Pretty fishy if you ask me! Can't wait to see how the Westjetters spin this one. Guess it'll cost a bit more now adjusting all the advertising about free baggage out there.

Nope. Nothing fishy. By not doing this a lot of revenue has been left on the table. How much do you want to bet the bag fee will almost pay for the dividend. Money just gets transferred from pocket a(customer) to pocket b(investor). There is a tonne of money in this as seen south of the boarder.

Westjets only problem here is they Care-anteed they wouldn't do it. However, and take note. Not one paper has picked up on it, at least so far. In fact only one paper even has the bag fee in the title on the news article.

How WJ manages their press coverage is amazing. When AC tried to do this exact same thing in 2008 they were eaten alive by the press. As you point out, WJ even stuck up signs in T1.

We won't charge for a second bag. We care-antee it.

Now? I don't very much AC will do anything other than shut up and follow suit. Probably thinking about freaking time. Who leaves money on the table?

Actually CR is probably on his way to give GS a big wet kiss as we speak.

It's an early Christmas. Free money!


................................

[Jastapilot]

Don't worry Brick Head. Mr Jang has already done his best to put some negativity in his article. We can always count on him to spin any good WJ news with negativity.
http://www.theglobeandmail.com/globe-in ... cmpid=rss1
I expect more toronto-centric negativity from him in the coming days...

In the meantime... WOO!

[Brick Head]

People generally do not read news cover to cover. They scan headlines and read what interests them. In this case it will be investors. The headline does not contain what is probably the biggest interest, to the most amount of people.

Negative press coverage doesn't get much better than that.

[Disco Stu]

Time to repaint the Care-antee airplane. What happened?

We will not charge you for two checked bags.
At WestJet we think it's reasonable to bring two checked bags. Just make sure they're within our size and weight limits. For details check out our baggage info page.

[mikeecho]

Time to repaint the Care-antee airplane. What happened?

We will not charge you for two checked bags.
At WestJet we think it's reasonable to bring two checked bags. Just make sure they're within our size and weight limits. For details check out our baggage info page.

This is what happened...

http://www.westjet.com/guest/en/experie ... ntee.shtml
FINE PRINT
This is the spot where you normally find all the rules and conditions. But let's face it; stuff happens and things change. What we can promise is that we'll do our best and do it with a smile.

[Brick Head]

FINE PRINT
This is the spot where you normally find all the rules and conditions. But let's face it; stuff happens and things change. What we can promise is that we'll do our best and do it with a smile.

"That will be $20 please" with a smile from ear to ear.

Sorry couldn't resist. Seriously it is about time this took place. Airfare is not and has not been keeping up with costs for decades. New innovative revenue streams are required.

[CanadaEH]

Thanks Brick Head, logical responses with a bit of humor.

[Red1]

Who freakin cares about the extra $20 for second bag .. I mean really ... really. It's all about ancillary revenue.
The big story is the dividend payout. This is a great thing for the investor and gives people reason to hold the stock in uncertain times. With everyone around looking for yield, and over a billion in the bank ... show me the money. Now I have more of a reason to hold the stock.

[bcflyer]

Who freakin cares about the extra $20 for second bag .. I mean really ... really. It's all about ancillary revenue.

Odd that the public (and many on this forum) didn't see it that way when Air Canada started charging. If I recall correctly AC was crucified in the press about it... Wonder what the response will be this time.

[Bede]

Odd that the public (and many on this forum) didn't see it that way when Air Canada started charging. If I recall correctly AC was crucified in the press about it... Wonder what the response will be this time.

That does suck for the AC guys. I remember being at Jazz and getting ticked everytime AC got the bad press for something. I've noticed that AC has really picked up their game in the last few years (compare lineups for checkin). All in all, Canada has some of the best airlines in the world.