Travel

Westjet slow death.

  • Last Updated:
  • Jan 12th, 2021 1:56 pm
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21 replies
Sr. Member
Mar 24, 2016
970 posts
1491 upvotes
scarborough
Scumbags owe me 10k for services not used. no refunds
Sr. Member
Aug 3, 2017
689 posts
505 upvotes
Things will have to get pretty bad for WS to not survive with the backing of Onex. The layoffs and cancellations this week are directly related to the latest travel restrictions put in place by the federal government.
Member
Nov 10, 2019
256 posts
177 upvotes
explorer11 wrote: Scumbags owe me 10k for services not used. no refunds
Greatest scam of the pandemic era and the government not doing anything about it is the real issue here
Deal Guru
User avatar
Jan 9, 2011
10692 posts
12972 upvotes
Vancouver
<shrug> There's a pandemic. It will be over eventually. Boom times ahead for airlines, coming very soon. Who cares if they go out of business now? The'll come roaring back bigger and richer than ever with throngs of people throwing money at them. I hear the ice cream truck business is in a slump right now too, with trucks parked and in storage. They'll be back as well, just watch.
Deal Addict
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Oct 13, 2007
3614 posts
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Edmonton
kimchibowl wrote: Greatest scam of the pandemic era and the government not doing anything about it is the real issue here
It's the re-set.

You (they) have the choice of war or pandemic.
Deal Expert
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May 10, 2005
36156 posts
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Ottawa
Westjet will not collapse.
All companies lay off workers when business is slow and Westjet is not different. Air Canada, United, Lufthansa and other airlines all laid off people. The air travel part of the business is terrible for ll airlines (and those businesses associated with the airlines) and have laid off workers. They have kept minimum workers the keep the business afloat (or in the air). No scam, they have no cash to give refunds to those that are asking. Those that are entitled, as a result of regulation and/or ticket purchace T&C's, got them. I got them for 3 trips and vouchers for one other trip.
Hopefully, the business and airlnes will recover after this pandemic is under control.
The Government cannot give to anybody anything that the Government does not first take from somebody else.
Deal Addict
Nov 24, 2013
1387 posts
738 upvotes
Toronto
I'm pretty sure WestJet will be around. Everyone recognizes the need for 2 airlines in Canada to provide the illusion of competition.
Deal Guru
User avatar
Mar 12, 2005
10053 posts
2011 upvotes
Victoria
I think it's like a lot of other things. All they have to do is weather out the storm. Once Covid is in the rearview, I'm pretty sure people are going travel again. In fact I'm guessing a few years of not travelling is going to make a lot of people jones to do so.

It's not like something, say like print media, that has a business model people aren't interested in. People aren't flying because of Covid19. Covid19 goes away, it resumes.

I sort of feel like this about small businesses too. IF there was demand for the thing before Covid19, they're probably will be afterwars. The hard part is weathering the storm. If lots of small businesses wind down, then I would gather we see an increase in the creation of them post covid19 when the demand for their goods/services comes back.
Deal Guru
Feb 9, 2009
11023 posts
9504 upvotes
they'll claim bankruptcy

clean up all the debt and blame covid.

and then emerge out of bankruptcy again. not like air canada hasnt done this before
Deal Expert
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May 10, 2005
36156 posts
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Ottawa
Sanyo wrote: they'll claim bankruptcy

clean up all the debt and blame covid.

and then emerge out of bankruptcy again. not like air canada hasnt done this before
For clarity and reality, Air Canada filed for bankruptcy protection, it did not declare bankruptcy. There were significant reasons for it, eerliy similar to todays situations for all airlines.

"On April 1, 2003, Air Canada filed for bankruptcy protection under the Company’s Creditors Arrangement Act. The company cited the economic slowdown, terrorism threats, higher fuel costs, and labor disputes as the reasons. Other reasons that made recovery difficult were the Iraq War and the SARS outbreak.

At the start of 2003, Air Canada was cash-strapped already following its US$295 million losses in 2002. The company was heavily indebted to the tune of $13 billion, while cash reserves were depleting. Similarly, competition from smaller airlines and negotiations with labour unions were simultaneously occurring.

The Toronto Stock Exchange (TSX) had to halt trading of Air Canada shares. Those were the series of unfortunate events that led to the airline company’s demise in 2003. Management did not seek federal assistance as it obtained $700 million in bridge financing in the U.S."
https://www.fool.ca/2020/07/17/in-2003- ... at-itself/
The Government cannot give to anybody anything that the Government does not first take from somebody else.
Penalty Box
Feb 22, 2016
4745 posts
4321 upvotes
Sanyo wrote: they'll claim bankruptcy
clean up all the debt and blame covid.
and then emerge out of bankruptcy again. not like air canada hasnt done this before
WestJet is trying to hold on until the government bailout comes in April. If they shut down now, no bailout.

Thing is, the government would rather have fewer airlines to bail out so they screwed over WestJet, Porter, and Transat with the new testing requirements dropped on them as a Christmas present.

There's a method to all this. There will only be Air Canada left to bail out when this is all over. As was the plan from day one.
Deal Addict
May 16, 2017
1594 posts
2015 upvotes
Pete_Coach wrote: For clarity and reality, Air Canada filed for bankruptcy protection, it did not declare bankruptcy. There were significant reasons for it, eerliy similar to todays situations for all airlines.

...
And - the situation is actually far worse now than back then. The difference is the probable <in>ability to attract any new investors to finance a restructure of AC (or WestJet) as a going concern.

The other difference for WestJet is that they are a privately held company now with existing investors (via Onex) not likely to accept have their capital wiped-out, which it would be, in a restructuring under creditor protection. Sure, if losses are eventually determined to outweigh any potential future gain - liquidation or sale of assets may be on the table.
Sr. Member
Aug 3, 2017
689 posts
505 upvotes
robsaw wrote: And - the situation is actually far worse now than back then. The difference is the probable <in>ability to attract any new investors to finance a restructure of AC (or WestJet) as a going concern.

The other difference for WestJet is that they are a privately held company now with existing investors (via Onex) not likely to accept have their capital wiped-out, which it would be, in a restructuring under creditor protection. Sure, if losses are eventually determined to outweigh any potential future gain - liquidation or sale of assets may be on the table.
On what basis do you say AC and WS are in worse shape than AC / Canadian Airlines back then?
Sr. Member
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Jul 30, 2015
774 posts
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Garneau being replaced tomorrow... good news? Maybe.
Never argue with stupid people, they will drag you down to their level and then beat you with experience.
Deal Addict
Dec 7, 2011
2351 posts
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Whitehorse
It is crazy that they were still flying all those international routes. There is not enough essential travel to justify them.
Deal Expert
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May 10, 2005
36156 posts
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Ottawa
dolfan1980 wrote: On what basis do you say AC and WS are in worse shape than AC / Canadian Airlines back then?
The travel restrictions are much more severe and much longer, hence worse.
Latitude57 wrote: Garneau being replaced tomorrow... good news? Maybe.
And insert another Trudeau puppet. Omar Alghabra???? Transprt Minister??
Loser Philippe Champagne goes from foreign affairs to minster of innovation.....can't get demoted any more than that LOL
sokolov wrote: It is crazy that they were still flying all those international routes. There is not enough essential travel to justify them.
Yes there is, not just business but cargo, mail, medicines, personal issue. Lots or reasons to keep flying into certain countries.
The amount of countries are limited though so, it is far from normal routes.
The Government cannot give to anybody anything that the Government does not first take from somebody else.
Sr. Member
Aug 3, 2017
689 posts
505 upvotes
Pete_Coach wrote: The travel restrictions are much more severe and much longer, hence worse.
Sure, but that doesn't equate to their balance sheets necessarily. AC was heavily in debt in the early 2000s and not nearly in as good of shape as it entered the pandemic. I do not disagree at all that this has turned the industry upside down, but I have not seen anything that says AC / WS are in any way in the same place AC/Canadian were back then....yet.

In the same post you managed to call people loser and puppet. I'm not sure how one has a conversation based on facts in that way.
Deal Expert
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May 10, 2005
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dolfan1980 wrote: .
In the same post you managed to call people loser and puppet. I'm not sure how one has a conversation based on facts in that way.

Political comment to Latitude57.
Puppet is all of Trudeau's people.
Not loser people, just one person, from a high level ministerial position to a zero spot.
Conversation? Facts?
The Government cannot give to anybody anything that the Government does not first take from somebody else.

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