WestJet Group Hiring Freeze

[rudder]

The only reason that AC would be adding a 787 is to replace another WB. Is AC looking at reducing/exiting the 777 platform?

It is unlikely that ONEX has already influenced the business plan at WJ to the extent that the overseas initiative will be terminated. However, it is certainly possible that it may be an opportunity to early exit the 767 fleet.

The layoff announcement is very sad news for WJ Pilots. And a reality check for any other large pilot group that imagines itself somehow immune to both the immediate and longer term impact on passenger travel volume of the COVID crisis. The peak of global travel volume was reached in the summer of 2019. Most optimistic predictions coming from CEO’s and analysts are summer 2021 capacity at 80% of 2019. And not back to 2019 levels until 2022 or even 2023.

[Yycjetdriver]

I’ve heard plans of returning with only 39-737’s and 22-Q400’s. What are the plans for the 787’s and the 767’s? Initially parking or any being returned ?
Good luck to all, hope for a quick return.

TS

The plan was/is to operate one 787, that may have changed slightly with cargo demand. The 767’s are done, this was the plan for this coming fall anyways it just helped speed up the process. The 67’s require significant investments in the form of scheduled maintenance in order to keep them flying, WestJet wasn’t planning on making those investments and certainly isn’t now. Its rumoured they have a cargo operator who has agreed to buy them, maybe PrimeAir.

[Daniel Cooper]

I’ve heard plans of returning with only 39-737’s and 22-Q400’s. What are the plans for the 787’s and the 767’s? Initially parking or any being returned ?
Good luck to all, hope for a quick return.

TS

I think it's 17-737s and 22-Q400s. 39 aircraft total.

[RippleRock]

A fleet reduction post sound like trolling if you don't identify a source.

The WestJet guys and gals don't need unverified nonsense right now.

Very disrespectful in light of the layoff news. Isn't it bad enough?

[sanjet]

F*cking brutal. I really hope its only few months.

[Old fella]

Terrible news, hopefully everyone stays together. There will be recovery at some point and for what it is worth if I hear of acquaintances bragging to me about heading to US to get cheap fares instead of utilizing our Canadian carriers, I will tear a strip off their arses. Where I live being close to USA, such happens and I hear about it. Guys/gals at AC, WJ et al want and need their jobs back. I say same for using American carriers out of YHZ to connect points in US of A, use our airlines - period and full stop.

[airway]

Guys a lot of this rumour and speculation could be resolved by just reading the contract and PTA agreement.

There is no force majeure clause in the contract. There is something that sounds like a force majeure clause in the layoff section, but it only applies to notice of layoff timelines and layoff pay. That's it. If it applied to the whole contract it wouldn't specify the exact clauses it applies to! And it would live up in Scope or General or something, not buried in section 20 Layoffs. Even when that card is pulled (20.1.05) you still get layoff pay, but less.

As far as bumping to Encore, the PTA spells it out. If a mainline guy is gonna be on the street, he can bump into an Encore position. Period. "BUMP". Not "fill vacancy". When I bump you, you fall off your chair. That's the price the Encore guys (and company for recruitment carrots, remember when that was a thing? ) were willing to pay for getting a number on the WJ main list.

Please go read the contract and PTA. Then read it again for good measure. Then think about how bad it would look on WJ if they fu*&ed around with things and decide if they are willing to look like DBs to save a buck or 3, when every other airline is following the rules they agreed on.

The words "bump", "flush", and "vacancy" can all be interpreted in different ways by different people depending on what they want them to mean.
If they were used in any of your agreements, hopefully they were formally defined, with examples included.

BTW, I agree with your interpretation hurtin.

[Dry Guy]

Is it true there are pilots at WestJet in their 70's?

[altiplano]

Onex announces $500,000,000 share buyback.

https://www.globenewswire.com/news-rele ... r-Bid.html

All amounts in U.S. dollars unless otherwise stated

TORONTO, April 15, 2020 (GLOBE NEWSWIRE) -- Onex Corporation (“Onex”) (TSX: ONEX) announced today it has filed with the Toronto Stock Exchange, and the Exchange has accepted, a Notice of Intention to make a Normal Course Issuer Bid permitting Onex to purchase for cancellation up to 10% of the public float in its Subordinate Voting Shares, or 8,135,162 shares. There are 98,291,143 Subordinate Voting Shares issued and outstanding and the public float as at April 13, 2020 was 81,351,622 shares.

Onex may buy back shares from time to time during the next twelve months. Any purchases made under the Normal Course Issuer Bid will be effected through the facilities of TSX or alternative Canadian trading systems. The number of shares Onex is permitted to purchase under the bid may be reduced by private acquisitions pursuant to issuer bid exemption orders issued by a securities regulatory authority or otherwise exempt from the issuer bid requirements of applicable law and/or by purchases of shares by certain Onex executives or employees under purchase programs administered by Onex. Any purchases made by way of private agreements under an issuer bid exemption order issued by a securities regulatory authority will be at a discount to the prevailing market price as provided in the exemption order. Subject to any discretionary relief provided by the TSX, Onex may purchase up to 48,768 Subordinate Voting Shares during any trading day, being 25% of its average daily trading volume of 195,072 Subordinate Voting Shares for the most recently completed six calendar months. Onex may also purchase Subordinate Voting Shares from time to time under the Exchange's block purchase exemption, if available.

Onex commenced a similar Normal Course Issuer Bid on April 18, 2019 (the “2019 Bid”). The 2019 Bid, which permitted the purchase of up to 8,213,787 Subordinate Voting Shares, expires on April 17, 2020. A total of 1,180,321 shares were purchased under the 2019 Bid as at March 31, 2020 at an average purchase price of C$55.24 per share. Onex may also purchase Subordinate Voting Shares from time to time under the Exchange's block purchase exemption, if available. All such purchases under the 2019 Bid occurred through the facilities of the TSX or the block purchase exemption in a private transaction pursuant to an issuer bid exemption order issued by a securities regulatory authority.

The Normal Course Issuer Bid is being renewed as it is Onex’ view it is advantageous to the company and its shareholders to continue to repurchase Subordinate Voting Shares, from time to time, when they are trading at prices that result in an attractive risk-adjusted return for the continuing shareholders.

The Normal Course Issuer Bid will commence on April 18, 2020 and will conclude on the earlier of the date on which purchases under the bid have been completed and April 17, 2021.

[Jean-Pierre]

Same day as massive layoff. Cold blooded. Either they already got the government bailout and it was no string attached or they do not care to try and get one.

[Hangry]

Any die hards like to chime in? Reality Chex? Cloak? Brooks?

[RRJetPilot]

Pretty sure they choked drinking too much koolaid. Onex Corp will slowly show its true colours.

[rudder]

The 2019 issuer bid was fairly lightly actioned (1.1 million shares repurchased vs 8.2 million share repurchase limit).

This is just a renewal of an expiring arrangement and will likely also be lightly actioned unless the ONEX share price drops dramatically over the course of the next 12 months.

[altiplano]

The 2019 issuer bid was fairly lightly actioned (1.1 million shares repurchased vs 8.2 million share repurchase limit).

This is just a renewal of an expiring arrangement and will likely also be lightly actioned unless the ONEX share price drops dramatically over the course of the next 12 months.

Just $100,000,000 or so on the low end then...

[Blue42]

I’ve heard plans of returning with only 39-737’s and 22-Q400’s. What are the plans for the 787’s and the 767’s? Initially parking or any being returned ?
Good luck to all, hope for a quick return.

TS

I think it's 17-737s and 22-Q400s. 39 aircraft total.

Plus 1 787....or maybe more depending on cargo charters.

[Yycjetdriver]

Same day as massive layoff. Cold blooded. Either they already got the government bailout and it was no string attached or they do not care to try and get one.

Onex doesn’t give a s#it about any WestJet employee. There hasn’t even been a single email from them to any of the employees outside of management since the deal went through. In fact it’s known that WJ ALPA approached Onex to schedule a face to face welcome after the acquisition closed. The response a stern thanks but no thanks.

[rudder]

What Westjetters will have to learn is that ONEX is not WJ. ONEX is the conglomerate that owns WJ. ONEX corporate actions are not centred on WJ. However, the cash that WJ burns is now ONEX cash. Hence the aggressive employee layoffs to cut payroll cost while revenues are virtually non-existent.

Having the backing of a massive and well capitalized holding company with significant access to cash and capital will be a good thing when times improve. But it also creates pressure to stop the hemorrhage during bad times.

[Blue42]

What Westjetters will have to learn is that ONEX is not WJ. ONEX is the conglomerate that owns WJ. ONEX corporate actions are not centred on WJ. However, the cash that WJ burns is now ONEX cash. Hence the aggressive employee layoffs to cut payroll cost while revenues are virtually non-existent.

Having the backing of a massive and well capitalized holding company with significant access to cash and capital will be a good thing when times improve. But it also creates pressure to stop the hemorrhage during bad times.

Exactly. Westjet is 5% of Onex holdings, operations within the company have not changed at all.

[flyer 1492]

Watching the Calgary CTV news @ 5, they reported that 1700 West Jet pilots are to be laid off.

[Old fella]

Here is an interesting read from way, way back on ONEX vs Air Canada. Note reference CAI and ONEX seemed to be out foxed by AC. I am not smart enough to figure any angles with ONEX/WJ and AC but there are always angles, always will be....

https://www.lexpert.ca/article/the-onex ... ecode=CCCA