Analysts square off over Westjet
Maintenance an issue: Dlouhy's Doerksen disagrees with Mark Rosen
WestJet Airlines ltd. prides itself on making Canadian air travel fun for its passengers and lately it's also providing plenty of distractions for financial analysts.
The most amusing issue boils down to how westjet accounts for major maintenance checks (d-checks) on its aircraft, which at $2-million to $3-million every five to seven years, can have a significant impact on the bottom line depending on how and when the expense is taken.
A report from accountability research first shed light on the issue in january, and put westjet and its underwriters on the defensive by saying the day of reckoning was near.
This week dlouhy merchant struck back, saying the company is doing the right thing and recent changes to the maintenance regime makes the topic "Irrelevant."
To refresh your memory as to the original allegations of accounting here a link to the previous article and discussion: