Does Westjet meet the current threshold for foreign investment?
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Does Westjet meet the current threshold for foreign investment?
Westjet. Private. We don't see the books.
Air Canada, Transat; Publicly Traded. Duty to shareholders to disclose.
US counterparts -> publicly traded.
As we know, no bailouts are coming. But given the enormous debt that AC has raised, (share offerings, lease buybacks, etc), what is the mechanism of Transport Canada verifying that Westjet is STILL in compliance with domestic laws that limit foreign investment? (P.S. and fully taking advantage of CEWS, taxpayer funded. At which point does it tip the scales?).
Thoughts?
Air Canada, Transat; Publicly Traded. Duty to shareholders to disclose.
US counterparts -> publicly traded.
As we know, no bailouts are coming. But given the enormous debt that AC has raised, (share offerings, lease buybacks, etc), what is the mechanism of Transport Canada verifying that Westjet is STILL in compliance with domestic laws that limit foreign investment? (P.S. and fully taking advantage of CEWS, taxpayer funded. At which point does it tip the scales?).
Thoughts?
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Re: Does Westjet meet the current threshold for foreign investment?
While Westjet is private and there’s little to no way for average Joes like us to see foreign ownership, I’m sure it’s a different story for the government especially when they already had to verify and approve foreign ownership levels during the sale/privatization. Also, Onex has done fairly well throughout the pandemic with its other ventures, posting 500+million profit last quarter even with WestJet’s cash burn.
Re: Does Westjet meet the current threshold for foreign investment?
The CEWS does nothing to change the ownership percentage.
As long as a Canadian is the CEO of Onex it doesn’t matter where the money comes from as I believe it’s related to foreign ownership control not who is funding it.
As long as a Canadian is the CEO of Onex it doesn’t matter where the money comes from as I believe it’s related to foreign ownership control not who is funding it.
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Re: Does Westjet meet the current threshold for foreign investment?
CEWS goes to the employees not the company, how would it change the level of ownership? Confused.
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Re: Does Westjet meet the current threshold for foreign investment?
But this is what I mean, Onex is not a subsidiary of Westjet, Westjet is a subsidiary of Kestrel Bidco, of which Onex is one of the shareholders (most visible). The aspect of foreign ownership in Westjet has not been disclosed, but was approved by the Canadian Transportation Agency upon acquisition.Yycjetdriver wrote: ↑Wed Dec 30, 2020 6:40 am While Westjet is private and there’s little to no way for average Joes like us to see foreign ownership, I’m sure it’s a different story for the government especially when they already had to verify and approve foreign ownership levels during the sale/privatization. Also, Onex has done fairly well throughout the pandemic with its other ventures, posting 500+million profit last quarter even with WestJet’s cash burn.
I’m asking about whether is a continual requirement to review that Westjet, is in fact, majority Canadian owned. Given the pandemic, there has been ample fundraising by airlines in general - Air Canada has issued shares, sold aircraft, etc. Westjet/Onex has been silent. How is Westjet weathering the pandemic? Did it sell equity to one of its foreign partners in holding companies to skirt regulations? Issue bonds? We don’t know. For sure, there has been no government help as of today.
Therefore, Onex would have to loan money to Westjet (and disclose it to their shareholders). This has not been disclosed as I can research.
CEWS would not change the ownership structure, I was pointing out the irony that if Westjet is “now” majority foreign owned, we’d be subsidizing foreign investors on the back of the Canadian taxpayer. Ie. they’re able to forego full layoffs and avoid restructuring (where the real cost is) off the backs of the Canadian taxpayer. I’m not saying this is the case.
I’m asking, is there a continual requirement to verify foreign ownership for a private airline in Canada?
Re: Does Westjet meet the current threshold for foreign investment?
We subsidized airlines like Air China, China Southern, Cathay, Emirates, Qatar, KLM and more through CEWS.
Not to mention foreign owned, including government owned giants like the the Bank of China and others... They must be having a good laugh as they lend Canadians money to pay them back in subsidues they collect.
Not to mention foreign owned, including government owned giants like the the Bank of China and others... They must be having a good laugh as they lend Canadians money to pay them back in subsidues they collect.
Re: Does Westjet meet the current threshold for foreign investment?
That's the beauty of going private.alkaseltzer wrote: ↑Fri Jan 01, 2021 10:10 pmBut this is what I mean, Onex is not a subsidiary of Westjet, Westjet is a subsidiary of Kestrel Bidco, of which Onex is one of the shareholders (most visible). The aspect of foreign ownership in Westjet has not been disclosed, but was approved by the Canadian Transportation Agency upon acquisition.Yycjetdriver wrote: ↑Wed Dec 30, 2020 6:40 am While Westjet is private and there’s little to no way for average Joes like us to see foreign ownership, I’m sure it’s a different story for the government especially when they already had to verify and approve foreign ownership levels during the sale/privatization. Also, Onex has done fairly well throughout the pandemic with its other ventures, posting 500+million profit last quarter even with WestJet’s cash burn.
I’m asking about whether is a continual requirement to review that Westjet, is in fact, majority Canadian owned. Given the pandemic, there has been ample fundraising by airlines in general - Air Canada has issued shares, sold aircraft, etc. Westjet/Onex has been silent. How is Westjet weathering the pandemic? Did it sell equity to one of its foreign partners in holding companies to skirt regulations? Issue bonds? We don’t know. For sure, there has been no government help as of today.
Therefore, Onex would have to loan money to Westjet (and disclose it to their shareholders). This has not been disclosed as I can research.
CEWS would not change the ownership structure, I was pointing out the irony that if Westjet is “now” majority foreign owned, we’d be subsidizing foreign investors on the back of the Canadian taxpayer. Ie. they’re able to forego full layoffs and avoid restructuring (where the real cost is) off the backs of the Canadian taxpayer. I’m not saying this is the case.
I’m asking, is there a continual requirement to verify foreign ownership for a private airline in Canada?
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Re: Does Westjet meet the current threshold for foreign investment?
That's not my question.brooks wrote: ↑Tue Jan 05, 2021 9:33 pmThat's the beauty of going private.alkaseltzer wrote: ↑Fri Jan 01, 2021 10:10 pmBut this is what I mean, Onex is not a subsidiary of Westjet, Westjet is a subsidiary of Kestrel Bidco, of which Onex is one of the shareholders (most visible). The aspect of foreign ownership in Westjet has not been disclosed, but was approved by the Canadian Transportation Agency upon acquisition.Yycjetdriver wrote: ↑Wed Dec 30, 2020 6:40 am While Westjet is private and there’s little to no way for average Joes like us to see foreign ownership, I’m sure it’s a different story for the government especially when they already had to verify and approve foreign ownership levels during the sale/privatization. Also, Onex has done fairly well throughout the pandemic with its other ventures, posting 500+million profit last quarter even with WestJet’s cash burn.
I’m asking about whether is a continual requirement to review that Westjet, is in fact, majority Canadian owned. Given the pandemic, there has been ample fundraising by airlines in general - Air Canada has issued shares, sold aircraft, etc. Westjet/Onex has been silent. How is Westjet weathering the pandemic? Did it sell equity to one of its foreign partners in holding companies to skirt regulations? Issue bonds? We don’t know. For sure, there has been no government help as of today.
Therefore, Onex would have to loan money to Westjet (and disclose it to their shareholders). This has not been disclosed as I can research.
CEWS would not change the ownership structure, I was pointing out the irony that if Westjet is “now” majority foreign owned, we’d be subsidizing foreign investors on the back of the Canadian taxpayer. Ie. they’re able to forego full layoffs and avoid restructuring (where the real cost is) off the backs of the Canadian taxpayer. I’m not saying this is the case.
I’m asking, is there a continual requirement to verify foreign ownership for a private airline in Canada?
Is there a continual requirement to verify foreign ownership percentage for a private airline in Canada? Not to the public, but to TC. Curious.
Re: Does Westjet meet the current threshold for foreign investment?
Foreign ownership voting interest, pretty sure the way I read it some Chinese company can own 99% of a Canadian airline if they have no voting interest and a Canadian guy owned 1% with all the voting rights for the shares.
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Re: Does Westjet meet the current threshold for foreign investment?
If you have the reference, that would be great.
Re: Does Westjet meet the current threshold for foreign investment?
Given the pandemic, the airlines as a whole have been able to raise enough money- Air Canada has issued shares, sold planes, and the like, Westjet/Onex has remained silent.
Re: Does Westjet meet the current threshold for foreign investment?
Probably because the entire time they (Onex) have been making money so I’m sure there is some inter company loans going on
https://www.nsnews.com/national-busines ... es-4750799
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Re: Does Westjet meet the current threshold for foreign investment?
Does Flair meet it either? What’s actual “ownership” in 2021? Office furniture to be owned but all aircraft leased by a foreign subsidiary?
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Re: Does Westjet meet the current threshold for foreign investment?
Last year was very difficult for the airline industry, but their shares are beginning to recover gradually. The growth was made possible by global vaccination and mitigation of the pandemic's impact on the economy through implementing incentive pacts. Nevertheless, it is not completely clear whether it is worth investing in airlines right now or is better to wait. I still haven't discussed this with my financial advisor from https://www.humaninvesting.com. Travel demand is recovering from the lows reached in April last year. American airlines have received billions of dollars in government aid.
Last edited by Allenhardy on Tue Oct 18, 2022 6:08 am, edited 1 time in total.
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Re: Does Westjet meet the current threshold for foreign investment?
It's too bad Westjet has reduced its so service so much out east. Eastern Canada will suffer with less choice & service
Re: Does Westjet meet the current threshold for foreign investment?
It looks like Air Transat and Porter are going to fill the void WestJet left … the east will be fine. Might even consider it an upgrade …noreasterYHZ wrote: ↑Sun Oct 16, 2022 6:01 am It's too bad Westjet has reduced its so service so much out east. Eastern Canada will suffer with less choice & service
Just poking the bear a little ..
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Re: Does Westjet meet the current threshold for foreign investment?
I've flown on all three. WestJet is supposed to be the best of the three according to management, but in reality its PD, TS, and then WS.Localizer wrote: ↑Wed Oct 26, 2022 8:10 amIt looks like Air Transat and Porter are going to fill the void WestJet left … the east will be fine. Might even consider it an upgrade …noreasterYHZ wrote: ↑Sun Oct 16, 2022 6:01 am It's too bad Westjet has reduced its so service so much out east. Eastern Canada will suffer with less choice & service
Just poking the bear a little ..
Re: Does Westjet meet the current threshold for foreign investment?
WJ raised money and stayed afloat by selling their aircraft and leasing them back.
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Re: Does Westjet meet the current threshold for foreign investment?
And didn't pay a penny on salaries the entire time the federal government had the CEWS program in place.