• Does Westjet meet the current threshold for foreign investment?

Posted: **Wed Dec 30, 2020 5:38 am**

Westjet. Private. We don't see the books.

Air Canada, Transat; Publicly Traded. Duty to shareholders to disclose.

US counterparts -> publicly traded.

As we know, no bailouts are coming. But given the enormous debt that AC has raised, (share offerings, lease buybacks, etc), what is the mechanism of Transport Canada verifying that Westjet is STILL in compliance with domestic laws that limit foreign investment? (P.S. and fully taking advantage of CEWS, taxpayer funded. At which point does it tip the scales?).

Thoughts?

Posted: **Wed Dec 30, 2020 6:40 am**

While Westjet is private and there’s little to no way for average Joes like us to see foreign ownership, I’m sure it’s a different story for the government especially when they already had to verify and approve foreign ownership levels during the sale/privatization. Also, Onex has done fairly well throughout the pandemic with its other ventures, posting 500+million profit last quarter even with WestJet’s cash burn.

Posted: **Thu Dec 31, 2020 5:08 am**

The CEWS does nothing to change the ownership percentage.
As long as a Canadian is the CEO of Onex it doesn’t matter where the money comes from as I believe it’s related to foreign ownership control not who is funding it.

Posted: **Thu Dec 31, 2020 12:01 pm**

CEWS goes to the employees not the company, how would it change the level of ownership? Confused.

Posted: **Fri Jan 01, 2021 10:10 pm**

Yycjetdriver wrote: ↑Wed Dec 30, 2020 6:40 am While Westjet is private and there’s little to no way for average Joes like us to see foreign ownership, I’m sure it’s a different story for the government especially when they already had to verify and approve foreign ownership levels during the sale/privatization. Also, Onex has done fairly well throughout the pandemic with its other ventures, posting 500+million profit last quarter even with WestJet’s cash burn.

But this is what I mean, Onex is not a subsidiary of Westjet, Westjet is a subsidiary of Kestrel Bidco, of which Onex is one of the shareholders (most visible). The aspect of foreign ownership in Westjet has not been disclosed, but was approved by the Canadian Transportation Agency upon acquisition.

I’m asking about whether is a continual requirement to review that Westjet, is in fact, majority Canadian owned. Given the pandemic, there has been ample fundraising by airlines in general - Air Canada has issued shares, sold aircraft, etc. Westjet/Onex has been silent. How is Westjet weathering the pandemic? Did it sell equity to one of its foreign partners in holding companies to skirt regulations? Issue bonds? We don’t know. For sure, there has been no government help as of today.

Therefore, Onex would have to loan money to Westjet (and disclose it to their shareholders). This has not been disclosed as I can research.

CEWS would not change the ownership structure, I was pointing out the irony that if Westjet is “now” majority foreign owned, we’d be subsidizing foreign investors on the back of the Canadian taxpayer. Ie. they’re able to forego full layoffs and avoid restructuring (where the real cost is) off the backs of the Canadian taxpayer. I’m not saying this is the case.

I’m asking, is there a continual requirement to verify foreign ownership for a private airline in Canada?

Posted: **Sat Jan 02, 2021 3:51 am**

We subsidized airlines like Air China, China Southern, Cathay, Emirates, Qatar, KLM and more through CEWS.

Not to mention foreign owned, including government owned giants like the the Bank of China and others... They must be having a good laugh as they lend Canadians money to pay them back in subsidues they collect.

Posted: **Tue Jan 05, 2021 9:33 pm**

alkaseltzer wrote: ↑Fri Jan 01, 2021 10:10 pm
Yycjetdriver wrote: ↑Wed Dec 30, 2020 6:40 am While Westjet is private and there’s little to no way for average Joes like us to see foreign ownership, I’m sure it’s a different story for the government especially when they already had to verify and approve foreign ownership levels during the sale/privatization. Also, Onex has done fairly well throughout the pandemic with its other ventures, posting 500+million profit last quarter even with WestJet’s cash burn.
But this is what I mean, Onex is not a subsidiary of Westjet, Westjet is a subsidiary of Kestrel Bidco, of which Onex is one of the shareholders (most visible). The aspect of foreign ownership in Westjet has not been disclosed, but was approved by the Canadian Transportation Agency upon acquisition.

I’m asking about whether is a continual requirement to review that Westjet, is in fact, majority Canadian owned. Given the pandemic, there has been ample fundraising by airlines in general - Air Canada has issued shares, sold aircraft, etc. Westjet/Onex has been silent. How is Westjet weathering the pandemic? Did it sell equity to one of its foreign partners in holding companies to skirt regulations? Issue bonds? We don’t know. For sure, there has been no government help as of today.

Therefore, Onex would have to loan money to Westjet (and disclose it to their shareholders). This has not been disclosed as I can research.

CEWS would not change the ownership structure, I was pointing out the irony that if Westjet is “now” majority foreign owned, we’d be subsidizing foreign investors on the back of the Canadian taxpayer. Ie. they’re able to forego full layoffs and avoid restructuring (where the real cost is) off the backs of the Canadian taxpayer. I’m not saying this is the case.

I’m asking, is there a continual requirement to verify foreign ownership for a private airline in Canada?

That's the beauty of going private.

Posted: **Tue Jan 05, 2021 11:51 pm**

brooks wrote: ↑Tue Jan 05, 2021 9:33 pm
alkaseltzer wrote: ↑Fri Jan 01, 2021 10:10 pm
Yycjetdriver wrote: ↑Wed Dec 30, 2020 6:40 am While Westjet is private and there’s little to no way for average Joes like us to see foreign ownership, I’m sure it’s a different story for the government especially when they already had to verify and approve foreign ownership levels during the sale/privatization. Also, Onex has done fairly well throughout the pandemic with its other ventures, posting 500+million profit last quarter even with WestJet’s cash burn.
But this is what I mean, Onex is not a subsidiary of Westjet, Westjet is a subsidiary of Kestrel Bidco, of which Onex is one of the shareholders (most visible). The aspect of foreign ownership in Westjet has not been disclosed, but was approved by the Canadian Transportation Agency upon acquisition.

I’m asking about whether is a continual requirement to review that Westjet, is in fact, majority Canadian owned. Given the pandemic, there has been ample fundraising by airlines in general - Air Canada has issued shares, sold aircraft, etc. Westjet/Onex has been silent. How is Westjet weathering the pandemic? Did it sell equity to one of its foreign partners in holding companies to skirt regulations? Issue bonds? We don’t know. For sure, there has been no government help as of today.

Therefore, Onex would have to loan money to Westjet (and disclose it to their shareholders). This has not been disclosed as I can research.

CEWS would not change the ownership structure, I was pointing out the irony that if Westjet is “now” majority foreign owned, we’d be subsidizing foreign investors on the back of the Canadian taxpayer. Ie. they’re able to forego full layoffs and avoid restructuring (where the real cost is) off the backs of the Canadian taxpayer. I’m not saying this is the case.

I’m asking, is there a continual requirement to verify foreign ownership for a private airline in Canada?
That's the beauty of going private.

That's not my question.

Is there a continual requirement to verify foreign ownership percentage for a private airline in Canada? Not to the public, but to TC. Curious.

Posted: **Wed Jan 06, 2021 8:31 am**

Foreign ownership voting interest, pretty sure the way I read it some Chinese company can own 99% of a Canadian airline if they have no voting interest and a Canadian guy owned 1% with all the voting rights for the shares.

Posted: **Thu Jan 07, 2021 1:02 pm**

fish4life wrote: ↑Wed Jan 06, 2021 8:31 am Foreign ownership voting interest, pretty sure the way I read it some Chinese company can own 99% of a Canadian airline if they have no voting interest and a Canadian guy owned 1% with all the voting rights for the shares.

If you have the reference, that would be great.

Posted: **Thu Jan 07, 2021 4:18 pm**

https://otc-cta.gc.ca/eng/publication/g ... sportation

Posted: **Sat Feb 12, 2022 10:08 am**

Given the pandemic, the airlines as a whole have been able to raise enough money- Air Canada has issued shares, sold planes, and the like, Westjet/Onex has remained silent.

Posted: **Sun Feb 13, 2022 9:38 am**

Olandeep wrote: ↑Sat Feb 12, 2022 10:08 am Given the pandemic, the airlines as a whole have been able to raise enough money- Air Canada has issued shares, sold planes, and the like, Westjet/Onex has remained silent.

Probably because the entire time they (Onex) have been making money so I’m sure there is some inter company loans going on

https://www.nsnews.com/national-busines ... es-4750799

Posted: **Thu Feb 17, 2022 1:13 pm**

Does Flair meet it either? What’s actual “ownership” in 2021? Office furniture to be owned but all aircraft leased by a foreign subsidiary?

Posted: **Fri Oct 14, 2022 10:04 am**

Last year was very difficult for the airline industry, but their shares are beginning to recover gradually. The growth was made possible by global vaccination and mitigation of the pandemic's impact on the economy through implementing incentive pacts. Nevertheless, it is not completely clear whether it is worth investing in airlines right now or is better to wait. I still haven't discussed this with my financial advisor from https://www.humaninvesting.com. Travel demand is recovering from the lows reached in April last year. American airlines have received billions of dollars in government aid.

Posted: **Sun Oct 16, 2022 6:01 am**

It's too bad Westjet has reduced its so service so much out east. Eastern Canada will suffer with less choice & service

Posted: **Wed Oct 26, 2022 8:10 am**

noreasterYHZ wrote: ↑Sun Oct 16, 2022 6:01 am It's too bad Westjet has reduced its so service so much out east. Eastern Canada will suffer with less choice & service

It looks like Air Transat and Porter are going to fill the void WestJet left … the east will be fine. Might even consider it an upgrade …

Just poking the bear a little ..

Posted: **Wed Oct 26, 2022 8:51 am**

Localizer wrote: ↑Wed Oct 26, 2022 8:10 am
noreasterYHZ wrote: ↑Sun Oct 16, 2022 6:01 am It's too bad Westjet has reduced its so service so much out east. Eastern Canada will suffer with less choice & service
It looks like Air Transat and Porter are going to fill the void WestJet left … the east will be fine. Might even consider it an upgrade …

Just poking the bear a little ..

I've flown on all three. WestJet is supposed to be the best of the three according to management, but in reality its PD, TS, and then WS.

Posted: **Wed Oct 26, 2022 1:16 pm**

Olandeep wrote: ↑Sat Feb 12, 2022 10:08 am Given the pandemic, the airlines as a whole have been able to raise enough money- Air Canada has issued shares, sold planes, and the like, Westjet/Onex has remained silent.

WJ raised money and stayed afloat by selling their aircraft and leasing them back.

Posted: **Wed Oct 26, 2022 10:38 pm**

Bede wrote: ↑Wed Oct 26, 2022 1:16 pm
Olandeep wrote: ↑Sat Feb 12, 2022 10:08 am Given the pandemic, the airlines as a whole have been able to raise enough money- Air Canada has issued shares, sold planes, and the like, Westjet/Onex has remained silent.
WJ raised money and stayed afloat by selling their aircraft and leasing them back.

And didn't pay a penny on salaries the entire time the federal government had the CEWS program in place.

Posted: **Thu Oct 27, 2022 12:38 am**

PeterParker wrote: ↑Wed Oct 26, 2022 10:38 pm
Bede wrote: ↑Wed Oct 26, 2022 1:16 pm
Olandeep wrote: ↑Sat Feb 12, 2022 10:08 am Given the pandemic, the airlines as a whole have been able to raise enough money- Air Canada has issued shares, sold planes, and the like, Westjet/Onex has remained silent.
WJ raised money and stayed afloat by selling their aircraft and leasing them back.
And didn't pay a penny on salaries the entire time the federal government had the CEWS program in place.

CEWS covered up to 75% of the salary up to a max of a complete salary of $58700. Lots of airlines were still paying a bunch for salaries.

Does Westjet meet the current threshold for foreign investment?

Does Westjet meet the current threshold for foreign investment?

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Re: Does Westjet meet the current threshold for foreign investment?