WHAT HAPPENED TO WESTJET?

WestJet copied the successful business model of Southwest Airlines. But Gucci shoe clad airline executives hated the model. Southwest flies only one airplane – the Boeing 737. It isn’t big and it isn’t sexy. But only one plane means only one set of parts and one training program for air and ground crews. WestJet shareholders fought off the Guccis for some years. And WestJetgrew and grew. Then the Guccis took over. Big airliners. Expensive ground facilities. And it’s shown. The profit shareholders make from Southwest is almost twice as high as what shareholders make from WestJet (a price/earnings ratio of 12.12 versus 22.49). West Jet should be worth 5 Billion Dollars – a hedge fund is picking it up for only 3.5 Billion.

Vulture Kapiitalsm – Bay Street  hedge fund – AKA “Private Equity Firm” –   wants to buy Calgary’s battered WestJet – worth $5 Billion  for only $3.5 Billion  – West Jet Board  wants to sell!!!The Toronto Wheeler Dealer behind West Jet takeover

Lord Strathcona — He drove the last spike

 

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