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billreid
Topic Author
Posts: 761
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CanJet WestJet Merger?

Thu Aug 31, 2006 8:52 am

CJ and WJ might be talking a take over by the western Canada company.

The fleets are fairly similar the res system is the same and the routes can be absorbed.

CanJet one was sold to Canada 3000 and was resurrected as CanJet 2 after the C3 failure. KCR might once again consider the idea if Clive would listen.

On the other hand there are some ex-westjetters that might want to take over CJ and establish a new beach head in YHM.

Thoughts??
Some people don't get it. Business is about making MONEY!
 
Cessnapimp
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RE: CanJet WestJet Merger?

Thu Aug 31, 2006 9:44 am

I don't see that happening. I think CJ is a good element to its mothercorp: IMP international, and at worst a good tax writeoff. The 735's are a different type than the NG's, but stranger things have happened. I don't think that CJ is that attractive to WJ, who is well established now west to east, Victoria to St-John's. I think the acquisition/integration costs far surpass the advantages.
 
thehangarcat
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RE: CanJet WestJet Merger?

Thu Aug 31, 2006 9:46 am

From the airchair Airline CEO...

Probably not a good idea, although a popular rumour. WS and C6 seemingly have the same fleet but WestJet just finished getting rid of their old not-so fuel efficient 732's and now have an all new, fresh out of the box, all NG fleet. It doesn't make sense to get their hands on old birds like C6's 735's (and some 733's I believe as well), it would be a step backwards...

(they'd have to change their billboards to "We used to have North America's youngest fleet)

Nevermind that C6's Culture and corporate structure is radically different from WS, sure WS is not the young scrappy pup of an airline it used to be but it's still acts and feels like an underdog, even if it's #2.

I say let the market decide what happens, if C6 goes Tango Uniform (i'm not saying it will but if it does) the market will adjust, and both AC and WS will scramble to fill the gap left by a demise of C6, they can always get more aircraft (new ones at that) and take their pick of the best people who are now in the unemployment line to run expanded operations at ex-C6 strongholds.

Remember what happens when an airline swallows up another one (CP/AC, TW/AA) and the problems it causes, to this day...

That being said, YHM is a lovely place, with some of the nicest people to ever hold an airside pass, and it deserves more traffic, and more transborder...

Why is it that WS only goes to MCO out of YHM?
How about RSW, PBI, LAS, FLL, NAS?
If it Ain't Boeing, I ain't Going!
 
9252fly
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RE: CanJet WestJet Merger?

Thu Aug 31, 2006 10:13 am

I don't foresee WS taking over C6. A more likely scenario would be for C6 to exit the scheduled carrier business and focus on charters. A deal could be made for an orderly takeover of the scheduled routes by WS. To me this would be the most sensible outcome. WS then would be in a position to solidify it's eastern network and really give AC a run for the money.
 
cslusarc
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RE: CanJet WestJet Merger?

Thu Aug 31, 2006 10:59 am

Well, I don't see that a C6-WS merger happening. I would like to see both C6 and WS seek stategic partners. I think that C6 would be good partner for CO if C6, moving its NYC flights to EWR. I think that WS is interested in linking up with B6, but I could be wrong.
--cslusarc from YWG
 
markabcan
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RE: CanJet WestJet Merger?

Thu Aug 31, 2006 10:23 pm

Canjet has recently entered into an agreement with Harmony to codeshare on some flights, mostly the trans-cons to be exact. This will help expand Canjets reach slightly, although in the long run I just don't see how Canjet can remain competitive. Their niche is slowly dying in the east and expansion never worked out west. Unless they have some tricks up their sleeve they will probably not last in the scheduled airline business that much longer.

As far as merging with Westjet, not going to happen! Westjet already serves the majority of Canjet routes and would see no great advantage to the merger. Problems include different cultures, different aircraft, new domicile, etc. I do wish Canjet the best, I would love to see them thrive!
.
 
A332
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RE: CanJet WestJet Merger?

Thu Aug 31, 2006 10:45 pm

WestJet does not need to waste assets taking over Canjet... both AC & WS offer a far better product and flight experience for the same cost. Unless Canjet can cough up some extra cash and bring their standards up to par, the consumer market will eventually eliminate Canjet from scheduled service.
Bad spellers of the world... UNTIE!
 
AC320tech
Posts: 208
Joined: Mon Jul 31, 2006 6:32 am

RE: CanJet WestJet Merger?

Thu Aug 31, 2006 10:55 pm

That would be something fun to see, considering C6 is owned by IMP which is HUGE in the Maritimes here. But it will not happen.
 
MattRB
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RE: CanJet WestJet Merger?

Thu Aug 31, 2006 10:56 pm

I actually speculated about this here: RE: Which Mergers Do You Forsee? (by MattRB Jul 6 2006 in Aviation Polls & Prefs)#ID92782

It would give each airline the market penetration they lack on the coasts.

Perhaps a codesharing arrangement would be a good first step, perhaps providing C6 with much needed revenue so they could start upgrading their fleet to the 73N.
Aviation is proof that, given the will, we have the capacity to achieve the impossible.
 
A332
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RE: CanJet WestJet Merger?

Thu Aug 31, 2006 11:06 pm

Quoting MattRB (Reply 8):
Perhaps a codesharing arrangement would be a good first step, perhaps providing C6 with much needed revenue so they could start upgrading their fleet to the 73N.

Won't happen. WestJet would gain nothing... they're already on the C6 route map and they offer a far better product.

The big competitor on the east coast network is Air Canada, not Canjet.
Bad spellers of the world... UNTIE!
 
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yyz717
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RE: CanJet WestJet Merger?

Fri Sep 01, 2006 1:38 am

I see no benefit to WS taking over C6. C6 has already given up on their foray into Western Canada and has retreated into their Atlantic base...which is a small market for WS, and low yielding.

WS would eliminate a small competitor with a C6 buyout but AC would gain just as much as WS, while WS would be left with the costs of integration including, as mentioned, a fleet of incompatiable 733/735 aircraft and a recently unionized FA workforce.

C6 has a loyal following among Maritimers. If WS bought out C6, that loyalty would not remain with WS and many pax would migrate to AC.

There is simply no benefit to a WS buy of C6. WS's strategy wrt C6 should be to keep C6 out of other WS markets, whether Western Canada or the YYZ/YUL/YOW triangle.
I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
richierich
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RE: CanJet WestJet Merger?

Fri Sep 01, 2006 1:50 am

What would their combined name be?

CanWestJet? WestCanJet? CanJetWest? CanWestJetJet?

"How Much West CanJet WestJet if a CanJet Could WestJet?"
None shall pass!!!!
 
drgmobile
Posts: 989
Joined: Tue Aug 29, 2006 3:06 am

RE: CanJet WestJet Merger?

Fri Sep 01, 2006 1:51 am

Is this post based on something substantive or just speculation?

As a private carrier, CanJet has no requirement (or desire, I'm sure) to post financials. Saying that, I have no reason to believe the company is doing badly. The management team in there has adopted a steady-as-you go approach to expansion and new service development and all indications to me are that it is an approach that is working just fine.

I thought taking on WestJet and Air Canada in the transcon runs was a mistake, but CanJet quickly adjusted itself there. I would not count out CanJet.
 
BA787
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RE: CanJet WestJet Merger?

Fri Sep 01, 2006 2:27 am

So does this mean Canjet would be inclkuded in the talks with oneworld?

Tom
 
MattRB
Posts: 1357
Joined: Wed Apr 27, 2005 4:49 am

RE: CanJet WestJet Merger?

Fri Sep 01, 2006 2:31 am

Quoting BA787 (Reply 13):
So does this mean Canjet would be inclkuded in the talks with oneworld?

No, as C6 is its own entity. This thread is nothing more than speculation/discussion/banter at this point.
Aviation is proof that, given the will, we have the capacity to achieve the impossible.
 
A332
Posts: 1421
Joined: Wed Feb 02, 2005 3:58 am

RE: CanJet WestJet Merger?

Fri Sep 01, 2006 3:13 am

Quoting Drgmobile (Reply 12):
As a private carrier, CanJet has no requirement (or desire, I'm sure) to post financials. Saying that, I have no reason to believe the company is doing badly.

That's what many people thought about Jetsgo too... perhaps their case was a little more extreme, but no one really believed that things could be as bad as they really were either.

Quoting Drgmobile (Reply 12):
I would not count out CanJet.

Unless Canjet is able to start offering a competitive product on par with WS/AC, I would not count them in for the long haul either.
Bad spellers of the world... UNTIE!

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