WestJet statement on Goverment funding for AC
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Re: WestJet statement on Goverment funding for AC
Well if WJ isn’t interested in terms and conditions of taxpayer dollars and they(WJ) think there are better ways through their own resources, good on WJ I would venture. Let the chips fall where they may as time progresses.
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Re: WestJet statement on Goverment funding for AC
https://canadianaviationnews.wordpress. ... s-drag-on/WestJet CEO Ed Sims says the federal government’s aid package for Air Canada could be “problematic” unless his company gets equitable treatment, as talks over pandemic relief continue between Ottawa and Canadian carriers.
he's more indecisive than doug ford
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Re: WestJet statement on Goverment funding for AC
Indecisive in what way? If WestJet is going to receive government support, they will understandably want it to be on the same terms as Air Canada's deal. With the government set to take roughly a 10% stake in their main competitor, I'm sure that WestJet is concerned that they're going to be put in a position where they're competing with a now government-backed Air Canada, which controls nearly half of the domestic Canadian market share.redbusdriver wrote: ↑Thu Apr 15, 2021 2:54 pmhttps://canadianaviationnews.wordpress. ... s-drag-on/WestJet CEO Ed Sims says the federal government’s aid package for Air Canada could be “problematic” unless his company gets equitable treatment, as talks over pandemic relief continue between Ottawa and Canadian carriers.
he's more indecisive than doug ford
If I were in Ed Sims' shoes, I know that I'd want assurances that whatever aid WestJet was to receive would result in the government also taking a similar equity stake (assuming that were palatable to Onex), or granting some other type of offset in order to stop Air Canada from gaining an unfair competitive advantage.
Re: WestJet statement on Goverment funding for AC
Does WJ/ONEX have assets to put up for security? Does WJ/ONEX have the ability to offer an equity stake at a discount with upside potential for ROI?Cavalier44 wrote: ↑Thu Apr 15, 2021 3:26 pm
Indecisive in what way? If WestJet is going to receive government support, they will understandably want it to be on the same terms as Air Canada's deal. With the government set to take roughly a 10% stake in their main competitor, I'm sure that WestJet is concerned that they're going to be put in a position where they're competing with a now government-backed Air Canada, which controls nearly half of the domestic Canadian market share.
If I were in Ed Sims' shoes, I know that I'd want assurances that whatever aid WestJet was to receive would result in the government also taking a similar equity stake (assuming that were palatable to Onex), or granting some other type of offset in order to stop Air Canada from gaining an unfair competitive advantage.
I am certain an unsecured loan is available to offer ticket refunds on the same terms as AC. LEEFF loans are also available.
And don’t forget the restrictions on dividends, stock buy backs, and Executive compensation.
Have at ‘er.
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Re: WestJet statement on Goverment funding for AC
I don't have the answers to those questions, and I'm sure that WestJet and Onex are trying to determine the answer to each of those as well, and whether or not they would result in an acceptable deal for the company.rudder wrote: ↑Thu Apr 15, 2021 4:18 pmDoes WJ/ONEX have assets to put up for security? Does WJ/ONEX have the ability to offer an equity stake at a discount with upside potential for ROI?Cavalier44 wrote: ↑Thu Apr 15, 2021 3:26 pm
Indecisive in what way? If WestJet is going to receive government support, they will understandably want it to be on the same terms as Air Canada's deal. With the government set to take roughly a 10% stake in their main competitor, I'm sure that WestJet is concerned that they're going to be put in a position where they're competing with a now government-backed Air Canada, which controls nearly half of the domestic Canadian market share.
If I were in Ed Sims' shoes, I know that I'd want assurances that whatever aid WestJet was to receive would result in the government also taking a similar equity stake (assuming that were palatable to Onex), or granting some other type of offset in order to stop Air Canada from gaining an unfair competitive advantage.
I am certain an unsecured loan is available to offer ticket refunds on the same terms as AC. LEEFF loans are also available.
And don’t forget the restrictions on dividends, stock buy backs, and Executive compensation.
Have at ‘er.
My response was to the post above, where the poster claimed that Ed Sims was indecisive. On the contrary, I think that his public statement is understandable - he wants to be sure that there's going to be a level playing field going forward for all the airlines vis-a-vis their relationship with the government.
If anything, I think there's probably more of a "have your cake and eat it too" mentality at play here, which may explain why WJ/Onex have not yet secured a deal. They want to be sure that there are going to be comparable terms at the negotiating table, but on the other hand, as you say Rudder, what are they willing to offer up in return? Time will tell.
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Re: WestJet statement on Goverment funding for AC
I think it was a polite way of beating around the bush and say that WJ doesn't want the strings attached to those loans. Basically telling the government negotiators that they can take those conditions and shove it because they're better off alone.