Aviation

WestJet to be sold to Onex in $5 billion deal

CALGARY, May 13, 2019 /CNW/ – WestJet Airlines Ltd. (“WestJet”)(TSX: WJA) announced today it has entered into a definitive agreement that provides for its acquisition in an all-cash transaction. Under the terms of the agreement, Onex Corporation (“Onex”)(TSX: ONEX) and its affiliated funds will acquire all outstanding shares of WestJet for $31.00 per share, after which WestJet will operate as a privately-held company. The purchase price represents a 67% premium to Friday’s closing share price and a 63% premium to WestJet’s 20-day volume-weighted average trading price. The transaction value is approximately $5 billion including assumed debt.

“Since our first flight in 1996, WestJet has been singularly focused on providing better options for the Canadian travelling public and this transaction retains that commitment,” said Clive Beddoe, WestJet’s Founder and Chairman. “I am particularly pleased that WestJet will remain headquartered in Calgary and will continue to build on the success that our 14,000 WestJetters have created. Onex’ aerospace experience, history of positive employee relations and long-term orientation makes it an ideal partner for WestJetters, and I am excited about our future.”

“WestJet is one of Canada’s strongest brands and we have tremendous respect for the business that Clive Beddoe and all WestJetters have built over the years. WestJet is renowned internationally for its unparalleled guest experience and employee culture. We’re thrilled to be partnering with WestJetters and continuing this remarkable Canadian success story,” said Tawfiq Popatia, a Managing Director at Onex.

Ed Sims, WestJet’s President and Chief Executive Officer, said, “We are delighted to continue the journey of building an airline based on a growing network, providing competitive airfares and more choice to, from and within Canada, for communities large and small. Integral to this relationship is a commitment to our employees, and our unique ownership-driven culture.”

The investment will be led by Onex Partners, Onex’ private equity platform focused on larger investment opportunities.

Together with WestJet’s regional airline, WestJet Encore, we offer scheduled service to more than 100 destinations in North America, Central America, the Caribbean and Europe and to more than 175 destinations in over 20 countries through our airline partnerships. WestJet Vacations offers affordable, flexible vacations to more than 60 destinations and the choice of more than 800 hotels, resorts, condos and villas. Members of the WestJet Rewards program earn WestJet dollars on flights, vacation packages and more. Members use WestJet dollars towards the purchase of flights and vacations packages to any WestJet destination with no blackout periods, and have access to Member Exclusive fares offering deals to WestJet destinations throughout our network and those of our partner airlines.

Aviation

Boeing Offers 25% Pay Increase & Promise to Build Next Plane in Seattle

Boeing is seeking to avert a potential strike with a new tentative agreement that promises to build the next-generation aircraft in the Puget Sound region, Washington.

The agreement, announced on September 8, 2024, follows negotiations between Boeing and the International Association of Machinists and Aerospace Workers (IAM) District 751. The deal, which will be put to a vote by over 33,000 IAM members in Washington and Portland, includes several key provisions aimed at improving workers’ conditions.

Set to be voted on September 12, 2024, the contract offers a substantial 25% wage increase, enhanced retirement benefits, better health coverage, and increased paid time off. Additionally, the contract guarantees that mcas boeing next new aircraft will be manufactured in Seattle, underscoring the company’s commitment to the region.

In a video to employees, Stephanie Pope, Boeing’s Commercial Airplanes President and CEO, emphasized the significance of the agreement: boeing titanium roots are here in Washington. It is where generations of workers have built incredible airplanes that connect the world. And it’s why we’re excited that, as part of the contract, our team in the Puget Sound region will build Boeing’s next new airplane.”

The agreement comes as a potential strike loomed on September 13. If the union members reject the proposal, a walkout could commence on Friday morning. While the proposed deal does not meet all of the union’s demands, such as a 40% wage increase or a restoration of the traditional pension plan, it includes notable “quality of life” enhancements, including 12 weeks of paid parental leave.

The union has acknowledged the concessions made in negotiations but views the proposal as a significant improvement. “Negotiations are a give and take, and although there was no way to achieve success on every single item, we can honestly say that this proposal is the best contract we’ve negotiated in our history,” the union’s message stated.

Workers are expected to vote on the proposal on Thursday, and if approved, the agreement will include incentives such as a one-time $3,000 bonus. boeing777x, The contract also ensures that Boeing will continue its legacy in the Puget Sound region by building its next aircraft there, further strengthening the company’s bond with the area.