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.