Onex Signs Agreement to Buy WestJet in $5B Acquisition

Real World Aviation
#1

WestJet have officially been taken private by Onex Corp. in a CAD$5B deal including assumed debt. Shareholders will receive $31 per share as a result of the acquisition, a 67% premium over the last closing price. This comes after WestJet’s rough start to 2019 largely affected by the grounding of the 737MAX, which caused WestJet to suspend their yearly outlook. WestJet currently operate 13 MAX 8 aircraft, with orders for 9 more, as well as orders for 22 MAX 7s and 12 MAX 10 aircraft. WestJet operate an ever-expanding all Boeing fleet currently consisting of 122 737s, 4 767s, and 3 787s. Here’s the link to the full article: https://beta.ctvnews.ca/national/business/2019/5/13/1_4419643.html

What’s your opinion on this? Personally, as a big fan and frequent flyer of WestJet, the deal partially makes me nervous. I’m undoubtedly excited that WestJet are getting the investment they need in order to take the next step in their growth, but I really hope it doesn’t come at a cost to what makes WestJet so great; their impeccable customer service, low prices, fantastic safety record, and unrivalled experience.

4 Likes
#2

woah. that’s very weird but if it helps them its ok. tbh idk if its good thing or a bad thing :/

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#3

I know it will help them financially, I just hope they don’t suffer elsewhere. The good news is their headquarters are remaining at CYYC, so we aren’t losing our hometown airline. I just hope they don’t lose their identity.

#4

Same here. Happy that they are staying in Calgary but I don’t really want WestJet to be the Next Frontier Airlines.

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#5

The part that makes me nervous is the fact they’re going private. Part of what makes WestJet so great is the every WestJet employee is a shareholder in the company, so they genuinely care about customer experience (hence the old
‘Owners Care’ slogan). By going private, that will no longer be the case. I’m praying it doesn’t affect the care factor of the airline.

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#6

Another great point.

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#7

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