WestJet statement on Goverment funding for AC
Posted: Mon Apr 12, 2021 5:49 pm
Too busy eating AC’s lunch I guess. Maybe it gave him heartburn?
I just think coming out right away saying that after months of playing the sympathy card while making permanent reductions isn’t needed.Launchpad1 wrote: ↑Tue Apr 13, 2021 5:33 pm I don't see any issue with that. It's just a statement of fact.
I think the thing is that Onex has cash and access to cash at better rates than the Federal program offers. They don't want to have to do things like guarantee service to money losing routes, or guarantee employment numbers, or do anything that will take control away and reduce their competitiveness... or cap Schwartz's salary...redbusdriver wrote: ↑Wed Apr 14, 2021 1:39 pm wait for westjet to soon get a gov't loan, and release a statement saying "we didn't need it, but we'll take it anyways"
good pointaltiplano wrote: ↑Wed Apr 14, 2021 3:33 pmI think the thing is that Onex has cash and access to cash at better rates than the Federal program offers. They don't want to have to do things like guarantee service to money losing routes, or guarantee employment numbers, or do anything that will take control away and reduce their competitiveness... or cap Schwartz's salary...redbusdriver wrote: ↑Wed Apr 14, 2021 1:39 pm wait for westjet to soon get a gov't loan, and release a statement saying "we didn't need it, but we'll take it anyways"
They would take direct subsidy, or free cash bailout, but why take money they have to pay back when they can get it without the strings attached for less of they need it.
Air Canada was offered a line of credit. If WestJet gets a similar offer, why would they refuse it?altiplano wrote: ↑Wed Apr 14, 2021 3:33 pmI think the thing is that Onex has cash and access to cash at better rates than the Federal program offers. They don't want to have to do things like guarantee service to money losing routes, or guarantee employment numbers, or do anything that will take control away and reduce their competitiveness... or cap Schwartz's salary...redbusdriver wrote: ↑Wed Apr 14, 2021 1:39 pm wait for westjet to soon get a gov't loan, and release a statement saying "we didn't need it, but we'll take it anyways"
They would take direct subsidy, or free cash bailout, but why take money they have to pay back when they can get it without the strings attached for less of they need it.
Because it came with a 15% equity stake and other strings attached.notwhoyouthinkIam wrote: ↑Thu Apr 15, 2021 7:34 amAir Canada was offered a line of credit. If WestJet gets a similar offer, why would they refuse it?altiplano wrote: ↑Wed Apr 14, 2021 3:33 pmI think the thing is that Onex has cash and access to cash at better rates than the Federal program offers. They don't want to have to do things like guarantee service to money losing routes, or guarantee employment numbers, or do anything that will take control away and reduce their competitiveness... or cap Schwartz's salary...redbusdriver wrote: ↑Wed Apr 14, 2021 1:39 pm wait for westjet to soon get a gov't loan, and release a statement saying "we didn't need it, but we'll take it anyways"
They would take direct subsidy, or free cash bailout, but why take money they have to pay back when they can get it without the strings attached for less of they need it.
Having access to cash (that they're not forced to draw from) is something that they would be dumb to refuse, unless it had some concessions that would make it more costly.
I think I said why they might refuse it.notwhoyouthinkIam wrote: ↑Thu Apr 15, 2021 7:34 amAir Canada was offered a line of credit. If WestJet gets a similar offer, why would they refuse it?altiplano wrote: ↑Wed Apr 14, 2021 3:33 pmI think the thing is that Onex has cash and access to cash at better rates than the Federal program offers. They don't want to have to do things like guarantee service to money losing routes, or guarantee employment numbers, or do anything that will take control away and reduce their competitiveness... or cap Schwartz's salary...redbusdriver wrote: ↑Wed Apr 14, 2021 1:39 pm wait for westjet to soon get a gov't loan, and release a statement saying "we didn't need it, but we'll take it anyways"
They would take direct subsidy, or free cash bailout, but why take money they have to pay back when they can get it without the strings attached for less of they need it.
Having access to cash (that they're not forced to draw from) is something that they would be dumb to refuse, unless it had some concessions that would make it more costly.