ac7e7
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Westjet to be acquired by Onex in $5B deal

Mon May 13, 2019 12:47 pm

Onex to acquire Westjet in $5B deal.

Back in 1999, Onex proposed acquiring and merging Air Canada and Canadian Airlines International in partnership with AA.

https://www.bnnbloomberg.ca/westjet-to- ... -1.1257841
 
KlimaBXsst
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 1:15 pm

Is Westjet Encore safe or a money losing asset.
What slots does Westjet have?
Aesthetically the A 340 got it right!
 
MartyMcFlyYYC
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 1:16 pm

God I hope they go all Airbus A320 Family fleet now HAHAHAHA
 
KlimaBXsst
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 1:18 pm

I expect one of the first things ONEX will do is set up a shell subsidiary have Westjet lease back any of its owned planes.

We have seen before.
Aesthetically the A 340 got it right!
 
SpaceshipDC10
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 1:27 pm

So 20 years after the attempted raid on Canadian Airlines & Air Canada by American/Onex, the latter is back in in airline acquisition business with Westjet.
 
ac7e7
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 1:33 pm

Westjet Encore is likely safe. If provides feeder traffic to mainline. Until we hear more, I bet they will get rid of Swoop and focus on their mainline product (business class).
 
SpaceshipDC10
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 1:34 pm

ac7e7 wrote:
I bet they will get rid of Swoop


By selling it or simply grounding it?
 
ac7e7
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 1:35 pm

SpaceshipDC10 wrote:
ac7e7 wrote:
I bet they will get rid of Swoop


By selling it or simply grounding it?


Ground it, and reintegrate the planes back into mainline.
 
Dieuwer
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 1:40 pm

There is only ONE reason a private equity firm is buying WestJet: TO MAKE A QUICK BUCK. I expect the following scenario:

1) Sell of non-performing assets.
2) Load up WestJet will billions of debt
3) Get a positive investment return as soon as possible ($10B minimum)
4) Sell airline back to market, hopefully to lots of sheople.
5) Otherwise, declare bankruptcy and let the employees pick up the pieces.
Last edited by Dieuwer on Mon May 13, 2019 1:42 pm, edited 2 times in total.
 
Dominion301
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 1:41 pm

Wow so 20 years after AC-CP Onex-AA, Onex get an airline.

I wonder what, if anything will change at WestJet? Will this be a long-term investment or a Sears-type load-up-on-debt and milk-it and then go public again in 5 years.

I don't think anyone saw this one coming.

Wonder what the folks at AC are thinking this morning?
 
KlimaBXsst
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 1:46 pm

Or does ONEX plan on the Swoopification of Westjet?

Hawaii routes... expected to be hemorrhaging with all the new Competition and Southwest? Doesn’t Westjet, Encore have a few issues going forward now that Bombardier will be wrapping up the Q400 program and for Westjet mainline the MAX still grounded.
Aesthetically the A 340 got it right!
 
baje427
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 1:57 pm

KlimaBXsst wrote:
Or does ONEX plan on the Swoopification of Westjet?

Hawaii routes... expected to be hemorrhaging with all the new Competition and Southwest? Doesn’t Westjet, Encore have a few issues going forward now that Bombardier will be wrapping up the Q400 program and for Westjet mainline the MAX still grounded.


Viking has taken over the Q400 production.
 
berari
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 2:00 pm

Maybe they will also buy Air Transat and merge the two haha
 
Midwestfly
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 2:03 pm

Wonder what happens with the Delta JV.
 
Steelhead
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 2:10 pm

If they shut down SWOOP that will open the door again for Flair, Jetlines and ..... There is for sure a market in Canada!
 
ExMilitaryEng
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 2:11 pm

berari wrote:
Maybe they will also buy Air Transat and merge the two haha

Indeed. Onex has enough capital to also buy Transat AT.

Despite flying different equipment (and having totally different culture...) we can see the complementary reach of each airline: WestJet being strong in the west, average in TO and extremely poor in French speaking markets (Transat being the other way around).

In such a scenario (and if they can somehow keep both airlines/pilot groups separated), I can see Transat's A321LRs usefulness for some WestJet's longer thin routes. And WestJet (+Encore) could efficiently feed some Transat's transatlantic routes.

As mentioned above, the older crowd will remember when Onex / AA made an hostile Canadian / Air Canada take over bid in 1999. Their plan was then to move AC from Star Alliance to One World...

Above scenario is obviously highly hypothetical. Most probably Onex has no interests in buying AT whatsoever.
 
ddp
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 2:38 pm

berari wrote:
Maybe they will also buy Air Transat and merge the two haha


Or they go after Porter, and Westjet will actually have real presence East of Toronto.
 
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admanager
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 2:51 pm

Dieuwer wrote:
There is only ONE reason a private equity firm is buying WestJet: TO MAKE A QUICK BUCK. I expect the following scenario:

1) Sell of non-performing assets.
2) Load up WestJet will billions of debt
3) Get a positive investment return as soon as possible ($10B minimum)
4) Sell airline back to market, hopefully to lots of sheople.
5) Otherwise, declare bankruptcy and let the employees pick up the pieces.

You missed a couple
- sell off profitable assets which will allow them a quick return on their investment
- charge big management fees / dividends
Read more..How Vulture Capitalists Ate Sears. https://theweek.com/articles/801927/how ... -ate-sears
 
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CFM565A1
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 2:57 pm

“Owners Care”... I guess that old slogan will have to get dumped now that it’s a non YYC corporate entity that owns them. :D I’m sure the employee share will get reworked much like other companies have done when getting bought like this.
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ExMilitaryEng
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 2:59 pm

AA was doing exactly that with Canadian Airlines (huge fees to use Sabre etc) - despite owning only 25%.
 
robsaw
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 3:04 pm

Dieuwer wrote:
There is only ONE reason a private equity firm is buying WestJet: TO MAKE A QUICK BUCK. I expect the following scenario:

1) Sell of non-performing assets.
2) Load up WestJet will billions of debt
3) Get a positive investment return as soon as possible ($10B minimum)
4) Sell airline back to market, hopefully to lots of sheople.
5) Otherwise, declare bankruptcy and let the employees pick up the pieces.


Onex has quite a varied history (investments from a few months to 20+ years and continuing, but more typically 4 - 7 years). Your 5 points are pure speculation and not typical of Onex.
 
NZ321
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 3:10 pm

This is shocking and not good news. I can't imagine how the folks at Westjet are feeling right now. That is an airline with a high level of loyalty from crew IMHO. And I see diversity of service leaving the Canadian skies as a result of this. Why on earth was this approved? I think this is not great news for the customer either. Are Westjet in such financial turmoil that they had to accept this?
Plane mad!
 
edmountain
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 3:23 pm

NZ321 wrote:
This is shocking and not good news. I can't imagine how the folks at Westjet are feeling right now. That is an airline with a high level of loyalty from crew IMHO. And I see diversity of service leaving the Canadian skies as a result of this. Why on earth was this approved? I think this is not great news for the customer either. Are Westjet in such financial turmoil that they had to accept this?

I'd say it was approved because of the 67% premium on the share price and nothing else. Nothing more complicated than that.

As for diversity of service, WestJet stopped being "the little airline that could" a long time ago.
 
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GlobalAirways
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 3:26 pm

Dieuwer wrote:
There is only ONE reason a private equity firm is buying WestJet: TO MAKE A QUICK BUCK. I expect the following scenario:

1) Sell of non-performing assets.
2) Load up WestJet will billions of debt
3) Get a positive investment return as soon as possible ($10B minimum)
4) Sell airline back to market, hopefully to lots of sheople.
5) Otherwise, declare bankruptcy and let the employees pick up the pieces.



BINGO!!!
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 3:29 pm

NZ321 wrote:
Why on earth was this approved?


It hasn't been approved yet. Shareholders and government regulators still have to approve it.

Are Westjet in such financial turmoil that they had to accept this?


It has nothing to do with financial turmoil.

Onex is offering a 67% premium over Friday's closing share price. Shareholders have to vote to decide whether or not to accept the offer, or whether they think they can do better by hanging onto the shares or finding someone else to offer even more.
The plural of Airbus is Airbuses. Airbii is not a word.
There is no 787-800, nor 787-900 or 747-800. It's 787-8, 787-9, and 747-8.
A321neoLR is also unnecessary. It's simply A321LR.
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GlobalAirways
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 3:30 pm

robsaw wrote:
Dieuwer wrote:
There is only ONE reason a private equity firm is buying WestJet: TO MAKE A QUICK BUCK. I expect the following scenario:

1) Sell of non-performing assets.
2) Load up WestJet will billions of debt
3) Get a positive investment return as soon as possible ($10B minimum)
4) Sell airline back to market, hopefully to lots of sheople.
5) Otherwise, declare bankruptcy and let the employees pick up the pieces.


Onex has quite a varied history (investments from a few months to 20+ years and continuing, but more typically 4 - 7 years). Your 5 points are pure speculation and not typical of Onex.


Of course, but Private Equity (PE) is not about making a good airline better. PE's sole purpose is to create profit for its investors within a short time frame 1 to 5 years on average.
There is little difference in people, but that little difference makes a big difference. The little difference is attitude. The big difference is whether it is positive or negative. ~ W. Clement Stone
 
KlimaBXsst
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 3:30 pm

Well one thing is for sure ... a firm like ONEX would not purchase an airline at a premium, unless they saw an opportunity to make a larger profit, via asset stripping, break up, or additional opportunities to capitalize on a resource such as the penalties Boeing will be paying Westjet for the MAX.

These numbers will easily be sheltered into enriching ONEX for their next venture.

Carl Icahn
Frank Lorenzo
Mark Patterson / David Matlin / Lap Chan
Aesthetically the A 340 got it right!
 
UpNAWAy
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 3:38 pm

Ultimately if WestJet is worth more in pieces than whole, there is nothing inherently bad in selling off those pieces. And that ultimately will make the airline biz stronger (markets generally work, even if disruptive), and might also encourage the next generation of start ups?
 
robsaw
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 3:39 pm

GlobalAirways wrote:

Of course, but Private Equity (PE) is not about making a good airline better. PE's sole purpose is to create profit for its investors within a short time frame 1 to 5 years on average.


The sole purpose of a publicly-traded company is making profit for shareholders, in that regard no different than a PE firm.

Onex investments average more like 4 - 7 years (some shorter, some longer) and have kept some in operation for 23 years and ongoing.

Stereotyping all PE firms as simplistic vulture capitalists is just that, a stereotype that presents no valid basis for what Onex intends to do with Westjet.
 
VS11
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 3:40 pm

NZ321 wrote:
This is shocking and not good news. I can't imagine how the folks at Westjet are feeling right now. That is an airline with a high level of loyalty from crew IMHO. And I see diversity of service leaving the Canadian skies as a result of this. Why on earth was this approved? I think this is not great news for the customer either. Are Westjet in such financial turmoil that they had to accept this?


It is a friendly deal, and the reason the owners agreed is very simple. The buyer is offering 67% more than the closing price on Friday. It is an all-cash deal. I doubt anyone would not agree to this deal. Certainly management would be very happy to cash their stock/options. And if crew folks were given stock/options, they will benefit as well.
 
KlimaBXsst
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 3:44 pm

Pilots at Westjet... airlines are hiring ... now is a great time to jump ship to protect your livelihood. For other employees... I am so sorry for you all.
Aesthetically the A 340 got it right!
 
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767333ER
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 3:49 pm

Aww shucks it's not the little home town Alberta Strong airline any more, just another sell out to the big evil bullies in Ontario! This is what happens when a bunch of cowboys run an airline and it gets big. :stirthepot:
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yyztpa2
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 3:50 pm

MartyMcFlyYYC wrote:
God I hope they go all Airbus A320 Family fleet now HAHAHAHA

Is Onex still the principle owner of 737 fuselage manufacturer Spirit Aerospace?
 
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enilria
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 3:51 pm

admanager wrote:
Dieuwer wrote:
There is only ONE reason a private equity firm is buying WestJet: TO MAKE A QUICK BUCK. I expect the following scenario:

1) Sell of non-performing assets.
2) Load up WestJet will billions of debt
3) Get a positive investment return as soon as possible ($10B minimum)
4) Sell airline back to market, hopefully to lots of sheople.
5) Otherwise, declare bankruptcy and let the employees pick up the pieces.

You missed a couple
- sell off profitable assets which will allow them a quick return on their investment
- charge big management fees / dividends
Read more..How Vulture Capitalists Ate Sears. https://theweek.com/articles/801927/how ... -ate-sears

Indigo Partners seemed to do well by NK and now F9. I think ONEX's history shows they will try to do a competition-reducing merger. They can't merge with AC (I hope), so that's off the table. I'm not sure this is good for the DL relationship which already seemed unstable. DL likes to exercise a lot of control over its JV partners. While ONEX is probably quite compatible with Delta in management style, I think ONEX will butt heads with Delta on maneuvers that are better for Delta than WS.

Regarding the list:
>1) Sell of non-performing assets.
Probably just liquidate. The goal is to limit competition, not help competitors gain a larger foothold.
>2) Load up WestJet will billions of debt
They have to do an IPO to make their money. I don't think this would help with the IPO.
>3) Get a positive investment return as soon as possible ($10B minimum)
Sure. I think Transatlantic long-haul is probably also at risk. I get the impression it is not doing that well.
>4) Sell airline back to market, hopefully to lots of sheople.
Yup
>5) Otherwise, declare bankruptcy and let the employees pick up the pieces.[/quote]
Hard to make money off your $5B investment with that as a strategy
>- sell off profitable assets which will allow them a quick return on their investment
I don't think so. That would create new competitors to hurt performance of what remains.
>- charge big management fees / dividends
If they own them 100% who cares. This would only matter post-IPO and it would likely end with the sale.

You also left out, "ask employees for wage givebacks". I think that's quite possible if they decide they performed better before as a true LCC/ULCC.
 
Alias1024
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 4:01 pm

VS11 wrote:
NZ321 wrote:
This is shocking and not good news. I can't imagine how the folks at Westjet are feeling right now. That is an airline with a high level of loyalty from crew IMHO. And I see diversity of service leaving the Canadian skies as a result of this. Why on earth was this approved? I think this is not great news for the customer either. Are Westjet in such financial turmoil that they had to accept this?


It is a friendly deal, and the reason the owners agreed is very simple. The buyer is offering 67% more than the closing price on Friday. It is an all-cash deal. I doubt anyone would not agree to this deal. Certainly management would be very happy to cash their stock/options. And if crew folks were given stock/options, they will benefit as well.


The owners have not yet agreed. Shareholders will still have to vote to approve the buyout. The Board of Directors could have rejected the offer and refused to present it to shareholders, however at a 67% premium the directors didn't have much of a choice. To not put this to the shareholders would have been a total abdication of their fiduciary duty to the shareholders they have been elected to serve.
It is a mistake to think you can solve any major problems with just potatoes.
 
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GlobalAirways
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 4:04 pm

robsaw wrote:
GlobalAirways wrote:

Of course, but Private Equity (PE) is not about making a good airline better. PE's sole purpose is to create profit for its investors within a short time frame 1 to 5 years on average.


The sole purpose of a publicly-traded company is making profit for shareholders, in that regard no different than a PE firm.

Onex investments average more like 4 - 7 years (some shorter, some longer) and have kept some in operation for 23 years and ongoing.

Stereotyping all PE firms as simplistic vulture capitalists is just that, a stereotype that presents no valid basis for what Onex intends to do with Westjet.


Hey Rob, have you ever worked for a company that was purchased by a PE firm? I've worked for two one was public and the other was private... Both situations turned out poorly for the employees and the customer experience and I think that is really the point. If you're on this site you're an aviation enthusiast.
Last edited by GlobalAirways on Mon May 13, 2019 4:11 pm, edited 2 times in total.
There is little difference in people, but that little difference makes a big difference. The little difference is attitude. The big difference is whether it is positive or negative. ~ W. Clement Stone
 
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CFM565A1
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 4:10 pm

Alias1024 wrote:
VS11 wrote:
NZ321 wrote:
This is shocking and not good news. I can't imagine how the folks at Westjet are feeling right now. That is an airline with a high level of loyalty from crew IMHO. And I see diversity of service leaving the Canadian skies as a result of this. Why on earth was this approved? I think this is not great news for the customer either. Are Westjet in such financial turmoil that they had to accept this?


It is a friendly deal, and the reason the owners agreed is very simple. The buyer is offering 67% more than the closing price on Friday. It is an all-cash deal. I doubt anyone would not agree to this deal. Certainly management would be very happy to cash their stock/options. And if crew folks were given stock/options, they will benefit as well.


The owners have not yet agreed. Shareholders will still have to vote to approve the buyout. The Board of Directors could have rejected the offer and refused to present it to shareholders, however at a 67% premium the directors didn't have much of a choice. To not put this to the shareholders would have been a total abdication of their fiduciary duty to the shareholders they have been elected to serve.


It will likely pass through the vote... it’s my experience through a number of these votes/negotiations over the years that it’s highly rare that a proposal is turned down. Typically a proposal won’t be even released for vote if there’s any doubt of rejection. If they are uncertain then they’ll use a bit of pressure sales to help morph out a yes vote.
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VS11
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 4:38 pm

Alias1024 wrote:
VS11 wrote:
NZ321 wrote:
This is shocking and not good news. I can't imagine how the folks at Westjet are feeling right now. That is an airline with a high level of loyalty from crew IMHO. And I see diversity of service leaving the Canadian skies as a result of this. Why on earth was this approved? I think this is not great news for the customer either. Are Westjet in such financial turmoil that they had to accept this?


It is a friendly deal, and the reason the owners agreed is very simple. The buyer is offering 67% more than the closing price on Friday. It is an all-cash deal. I doubt anyone would not agree to this deal. Certainly management would be very happy to cash their stock/options. And if crew folks were given stock/options, they will benefit as well.


The owners have not yet agreed. Shareholders will still have to vote to approve the buyout. The Board of Directors could have rejected the offer and refused to present it to shareholders, however at a 67% premium the directors didn't have much of a choice. To not put this to the shareholders would have been a total abdication of their fiduciary duty to the shareholders they have been elected to serve.


I don’t know the intricacies of Canadian corporate law but the Board of Directors typically represents in large part the large shareholders. In any case, only 51% of the shareholders need to agree to sell.
 
EddieDude
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 4:51 pm

SpaceshipDC10 wrote:
So 20 years after the attempted raid on Canadian Airlines & Air Canada by American/Onex, the latter is back in in airline acquisition business with Westjet.

Onex was also part of the consortium that attempted to buy Qantas around 2006. TPG was the other large P.E. firm that formed part of that consortium.

Midwestfly wrote:
Wonder what happens with the Delta JV.

That should not change. I think Onex generally agrees with the strategy that has been followed by WestJet, that is why they are purchasing it. As others have mentioned, they will focus on cost-cutting and making it leaner and more profitable so as to exit via an IPO or an M&A deal in a few years at a fat profit.

GlobalAirways wrote:
PE's sole purpose is to create profit for its investors within a short time frame 1 to 5 years on average.

More like 3 to 7 years on average.
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MartyMcFlyYYC
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 5:04 pm

yyztpa2 wrote:
MartyMcFlyYYC wrote:
God I hope they go all Airbus A320 Family fleet now HAHAHAHA

Is Onex still the principle owner of 737 fuselage manufacturer Spirit Aerospace?


According to Wikipedia, yes. But they also build parts of the fuselage and wings for the A350. My original post was a joke, btw.
 
cumulushumilis
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 5:45 pm

It’s simple, WS shares are severely undervalued. WestJet’s growth plans are long term, the market thinks in quarters, short term.. You cannot execute on a long term plan in a short term market. The cost discipline, and plan is sound. Going private means your not at the whim of a market who sneezes at mere rumours. Build value through growth and diversification, then take the organization back to the market. An Onex example of this is Spirit.. One thing is for sure is that the airline environment in Canada has changed radically. This is not about gutting a company, more about taking an organization with a solid back bone global.
 
ddp
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 5:51 pm

WestJet stock was 31-34 bucks back in 2013-2014, and tanked since. Onex is probably thinking it can get it back to that point through operations.
But That was day of 100 plus oil and Calgary having some of the strongest business and corporate demand in the country, coupled with high growth rates for that service.

WestJet is now looking for growth with the ULCC and Long haul business, to get to 34 bucks + the question is does Onex see North American travel as the growth or continue to fly long haul. Also interesting founder of WestJet, who has no managing position with the airline is supportive of this move.
 
Alias1024
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Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 5:54 pm

CFM565A1 wrote:
Alias1024 wrote:
VS11 wrote:

It is a friendly deal, and the reason the owners agreed is very simple. The buyer is offering 67% more than the closing price on Friday. It is an all-cash deal. I doubt anyone would not agree to this deal. Certainly management would be very happy to cash their stock/options. And if crew folks were given stock/options, they will benefit as well.


The owners have not yet agreed. Shareholders will still have to vote to approve the buyout. The Board of Directors could have rejected the offer and refused to present it to shareholders, however at a 67% premium the directors didn't have much of a choice. To not put this to the shareholders would have been a total abdication of their fiduciary duty to the shareholders they have been elected to serve.


It will likely pass through the vote... it’s my experience through a number of these votes/negotiations over the years that it’s highly rare that a proposal is turned down. Typically a proposal won’t be even released for vote if there’s any doubt of rejection. If they are uncertain then they’ll use a bit of pressure sales to help morph out a yes vote.


I agree that it is very likely to pass, but strange things can happen. The recent saga over the sale of Anadarko petroleum is an example. It’s unlikely, but I just wanted to point out that this isn’t a done deal.
It is a mistake to think you can solve any major problems with just potatoes.
 
WayexTDI
Posts: 1169
Joined: Fri Sep 21, 2018 4:38 pm

Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 5:57 pm

MartyMcFlyYYC wrote:
yyztpa2 wrote:
MartyMcFlyYYC wrote:
God I hope they go all Airbus A320 Family fleet now HAHAHAHA

Is Onex still the principle owner of 737 fuselage manufacturer Spirit Aerospace?


According to Wikipedia, yes. But they also build parts of the fuselage and wings for the A350. My original post was a joke, btw.

Spirit AeroSystems is now a publicly traded company. As per their 2017 10-K (latest found):
As of August 2014, Onex no longer held any investment in the Company
 
multimark
Posts: 449
Joined: Sat Jul 29, 2006 1:53 pm

Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 6:28 pm

KlimaBXsst wrote:
Or does ONEX plan on the Swoopification of Westjet?

Hawaii routes... expected to be hemorrhaging with all the new Competition and Southwest? Doesn’t Westjet, Encore have a few issues going forward now that Bombardier will be wrapping up the Q400 program and for Westjet mainline the MAX still grounded.


What new competition from Canada to Hawai'i? Few Canadians bother to connect through the Mainland USA to Hawai'i.
 
Aliqiout
Posts: 285
Joined: Wed Oct 05, 2016 6:10 pm

Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 6:54 pm

multimark wrote:
KlimaBXsst wrote:
Or does ONEX plan on the Swoopification of Westjet?

Hawaii routes... expected to be hemorrhaging with all the new Competition and Southwest? Doesn’t Westjet, Encore have a few issues going forward now that Bombardier will be wrapping up the Q400 program and for Westjet mainline the MAX still grounded.


What new competition from Canada to Hawai'i? Few Canadians bother to connect through the Mainland USA to Hawai'i.

Especially not on WN.
 
tkoenig95
Posts: 286
Joined: Sun Jun 25, 2017 8:39 pm

Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 8:24 pm

ac7e7 wrote:
Westjet Encore is likely safe. If provides feeder traffic to mainline. Until we hear more, I bet they will get rid of Swoop and focus on their mainline product (business class).

Maybe this will steer WS away from the Euro business class plan and create something more substantial to compete with AC. WS has a great product and fleet, but an even better attack plan will win more Canadian market share.
 
User avatar
spinotter
Posts: 561
Joined: Wed May 27, 2015 1:37 am

Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 8:31 pm

Aliqiout wrote:
multimark wrote:
KlimaBXsst wrote:
Or does ONEX plan on the Swoopification of Westjet?

Hawaii routes... expected to be hemorrhaging with all the new Competition and Southwest? Doesn’t Westjet, Encore have a few issues going forward now that Bombardier will be wrapping up the Q400 program and for Westjet mainline the MAX still grounded.


What new competition from Canada to Hawai'i? Few Canadians bother to connect through the Mainland USA to Hawai'i.

Especially not on WN.


WN does not serve one airport in Canada, is that not true? So who connects from Canada to WN? No one, I guess. No wonder few Canadians connect to WN for Hawaii.
 
User avatar
spinotter
Posts: 561
Joined: Wed May 27, 2015 1:37 am

Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 8:36 pm

Aliqiout wrote:
multimark wrote:
KlimaBXsst wrote:
Or does ONEX plan on the Swoopification of Westjet?

Hawaii routes... expected to be hemorrhaging with all the new Competition and Southwest? Doesn’t Westjet, Encore have a few issues going forward now that Bombardier will be wrapping up the Q400 program and for Westjet mainline the MAX still grounded.


What new competition from Canada to Hawai'i? Few Canadians bother to connect through the Mainland USA to Hawai'i.

Especially not on WN.


WN does not serve one airport in Canada, is that not true? So who connects from Canada to WN? No one, I guess. No wonder few Canadians connect to WN for Hawaii.
 
User avatar
LAX772LR
Posts: 12401
Joined: Sun Nov 09, 2014 11:06 pm

Re: WestJet acquired by Onex in $5-billion deal

Mon May 13, 2019 10:39 pm

Alias1024 wrote:
The Board of Directors could have rejected the offer and refused to present it to shareholders, however at a 67% premium the directors didn't have much of a choice. To not put this to the shareholders would have been a total abdication of their fiduciary duty to the shareholders they have been elected to serve.

:checkmark: :checkmark: :checkmark:

^This right here.

Love it or hate it: WS is a corporation, and this is the primary reason that a corporation exists.
I myself, suspect a more prosaic motive... ~Thranduil

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