All valid points, but what is the data you would use to put forward an alternative interpretation and outcome and what is that alternative? Don’t overestimate the effect of WS on Onex in general it is only about 8% of their portfolio holding at it’s pre-Covid valuation, probably about 4% now and one that isn’t generating any of their profits by the looks of it at the moment.Mostly Harmless wrote: ↑Wed Feb 15, 2023 4:20 pm Issues with the economic analysis presented here:
Information is dated. 3, and now pushing 4, years out of date.
Assumptions based on growing uncertainty in the absence of real time data.
Changes in corporate structure and costs since you left/covid. IE: There are a lot less office staff, no ground handlers, etc.
The assets "sold" by the company remain within control of the Onex operation. So, those lease payments from one division go to another division but remain within the organization... great tax avoidance potential and income stream.
Forward ticket sales used by Onex to fund other operations and investments... again, the great accounting shell game of money flowing around the same organization but remaining within the overarching corporate structure.
The eventual return of the company to Public status, a company that will be beholden to Onex for Leases, Services and Financing for decades after the company goes Public once again.
WJ is a cash machine for Onex. One that would be difficult to shut down because they have a flow of income combined with a tax write-off.
BTW, the video is interesting, but the frequent flyer program at WS is not strong enough or broad enough to have the sort of impact that it has at legacy carriers, one of the impacts of having a quite limited business offering overall.