MD2

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MD2 last won the day on April 14 2018

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About MD2

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  1. In the fine tradition of Air Canada Employee website, focus on the messenger, rather than the message! All noise aside, do those A320s have GPS now? Speak to that or other technical upgrades Air Canada has done recently.
  2. Did Air Canada's last merger make it profitable? As I recall it filed for bankruptcy and cancelled all its shares. Few years later, it almost went bankrupt again! It seems that mergers don't necessarily make companies profitable, sound business plans do. I can't say with any certainty which route would be better for Transat, but judging by recent comments, and considering the "Quebec factor", I'd say a deal that has the government of Quebec invested in it and supposedly keeps the jobs in Quebec will garner more support.
  3. Just stating facts ace! Since you are so interested I'll make it even more plain for you. I guess it's surprising to the people on Air Canada Employee web site to hear anything but Air Canada's praises, but the jest of it is that overall WestJet scores much higher in terms of customer service, Porter even higher. Check surveys. Secondly, in terms of aircraft technical, WestJet has pioneered RNP in Canada, and Porter invested in LPV that it can virtually fly a precision-like approach to any runway; in contrast Air Canada's A320 fleet didn't (or still doesn't?) have GPS that for instance once the NDB was decommissioned on RWY 32 in Halifax, it could not even fly an instrument approach to that runway. Again just stating facts...
  4. Quebec government will almost certainly want a part in a "Quebec company". They have already signalled their willingness to invest to keep the company and jobs in Quebec. The board will also likely endorse such a deal as it would have the provincial government "invested" in the success of the company. Most staff will also likely prefer this as it will transform Transat into a higher profile company with more funds to secure more assets and growth.
  5. Well, this will likely force Air Canada into a bidding war which is a lose-lose scenario. New bidders may yet emerge. If it does get Transat, likely it is at inflated prices which make no economical sense and then is busied for a decade merging the operations and losing money in the process. Likely it will come with restrictions from Competition Bureau too, complicating things further. If it does lose the deal, it serves a s a set-back while breathing new life into the new Transat and increasing competition against it. The latter is likely to happen though, because of the requirement for Quebec government involvement, which has already signaled its willingness. A deal that has the Quebec government "invested" will be more appealing for Transat and for Quebec because it is seen as a guarantee to secure those jobs and keep them in Quebec. Much like the Bombardier deal, the more entities involved and invested in the deal, the better it is for the company!
  6. Well that's definitely a first, calling WestJet "not good on customer side of the operation"! Most likely take WestJet for a friendly "guest" experience over Air Canada's "customers"! And it's not really about being a technogeek as you say, rather about allocating resources where most needed. For instance in an age when most carriers are maximizing safety and efficiency by utilizing LPV and RNP, it's simply out of step with modernity to conduct traditional NDB approaches in a jet transport aircraft!
  7. It has everything to do with a safe and efficient operation which is the most important thing for passengers. If a carrier is creative enough to surpass supposedly the national carrier in resources for operation, surely it can secure required human resources to handle passengers, disabled or otherwise. Also if Air Canada stranded ALL its passengers for over a day (including many disabled no doubt), one couple pales in comparison. These things happen, no big news. I would posit that the entire WestJet long haul operations does not hing on this one event.
  8. Considering that just recently AC stranded thousands of "customers" due to their system wide software issues, I'd say this is insignificant in the grand scheme of things. Besides, WestJet has always been very resourceful in its operation, for instance pioneering RNP in Canada, at a time when some AC aircraft didn't even have GPS!
  9. This is good news for people at WestJet Group, and the travelling public who will have more choices for travel to the Far East at competitive prices. Quite likely the options for the next 10 B787s will be exercised very soon, and won't be surprizing to see options for more. I suspect applications for Japan, Australia and Brazil will follow.
  10. Considering the sizeable market share of each of these carriers over the Atlantic and Sun destinations, Competition Bureau likely requires considerable divesture of assets and routes to protect Canadian consumers. It may even look into Aeroplan again with some recommendations and restrictions. For its part, Air Canada may eliminate certain aircraft types and consolidate certain routes. It has already generated some spicy exchange on the issue of merging seniority lists, especially with Transat being fairly old and last of the "charter" airlines. They will likely demand to maintain their YUL base and fly their WB aircraft. It will be interesting and likely take a few years to sort out. As long as the economy and expansion holds, it might work out, otherwise it could translate into overleveraging (with foreign carriers) again. Although there seems to be ample cash reserves, an airline of that size, especially before operations are merged and streamlined, could eat through cash very quickly. This is why this deal, even though much cheaper, bears greater risk. The advantage in this deal is that it will likely expedite applications of other airlines for Atlantic and Pacific routes, which will be good for consumers. WestJet/Onex deal in contrast is much more straight forward and is simply a change of ownership to one that has more than enough cash and is eager to grow the business. With some discussions on their plans mainly no reduction in service or workforce, rather quite possibly an expansion in both; government agencies will be happy to endorse the deal. It will also be good for consumers who will have more choices in travel at a reduced price, particularly on many transborder city pairs.
  11. MD2

    Westjet

    The Onex deal very likely would have been better for the industry, consumers, and Canadian Airlines (which would have included Air Canada), because it wasn't so leveraged. But it had a problem, it didn't include Milton and his team! Onex made another attempt in acquiring a major airline, but to their credit, they were disciplined in not overpaying in a multiple offer frenzy. With WestJet, they seem to have taken all the right steps and it is a cooperative deal, and frankly for anything under $40, it is a bargain and leaves lots of room for cash infusion for further expansion.
  12. I don't believe it, it's all Onex propaganda!! There, the sarcastic remark! I wonder what happened. It is sad to see people languishing around the terminal so long to get on a short flight.
  13. MD2

    Westjet

    In spite of the usual biased remarks, the WestJet/Onex deal will prove very successful. Will not be surprising to see a new face join Onex BoD either. In time, WestJet long haul program, Swoop, vacations and loyalty program will be the focus of rapid growth in making WestJet even a stronger brand. Loyalty alone could be worth almost 5 billions! AC's hasty offer to buy Transat was because it thought WestJet was going to do it; or was it??!! Corporate acquisition chess game is never what it seems! With such large market shares for each carrier over the Atlantic and sun destinations, it is unlikely that the AC deal will pass the competition bureau's probe. Won't be surprising then if Transat goes back to WestJet to renew the talks! With such deep pockets and as a private owner, Onex will have much latitude in making WestJet aspirations in becoming a global carrier a reality in a relatively short time.
  14. MD2

    Westjet

    Why is it so pressing for "you" to know the financials of a company? It matters not what "you" think, only the stakeholder, namely Onex. And they seem to be happy with what they see and if they find a way to run the business and unlock its true potential and value, good for them! WestJet had recently faced too many obstacles in its path to becoming a global carrier that they had envisioned. Be it labour turmoil, be it probing "analysts", all of which no longer matter as with the (financial) help of Onex that espouses the same ideals and plans, it can grow the business and unfold its plans, likely more quickly, and then in the fullness of time when it's ready, possibly do another IPO. By then more than likely there will be other big name stakeholders involved too. This has happened in other industries where large companies have bought all shares to go private, unfold their vision of growth and possibly someday come back to the market. DH and DELL are two names that readily come to mind. This is very smart, and very humble of WestJet leadership, unlike Milton that nearly destroyed Canadian/Air Canada for his vanity. The same can be said about Porter. When its plans for expansion were delayed, it wisely shelved its IPO plans which allowed it to pursue alternate plans and unlock value in other areas, the largest of which was the terminal. It put it in an enviable position that for instance it could purchase Transat if it wished without any interference.
  15. MD2

    Westjet

    This transaction bodes well for Onex and WestJet group, all of WestJet group. Private equity firms are very misunderstood, but their value in their investment is not increased by shrinking the business, especially Onex. Onex has been interested in getting involved with a large carrier for some time first with Canadian and then with Qantas, and now it has that opportunity. It has a plan and vision and they seem to coincide with that of WestJet. It's not going to blow it. Likely its involvement will see its investment triple in about 8 to 10 years by which point they may have already sold part of the business to another invested party, some in an IPO, and may hold a small long term interest in a global airline. WestJet shares had been undervalued for sometime and Onex recognized this opportunity. Even at 31 it is bargain and leaves room for more investment to grow the business. Onex is very good at building synergy and increasing value and growth in quite a few areas of the business including Swoop. And this deal may not even be complete yet. There could likely other parties emerge in this deal in the weeks and months ahead. And likely Delta will become more involved.