WestJet Monopolizing Western Canadian Travel - Page 2 - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

Slava · 06-20-2011, 04:06 PM

Quote:

Originally Posted by Bigtime

I wouldn't touch airline stock with a ten foot pole.

Coming from a guy like you that is definitely saying something!

Sliver · 06-20-2011, 04:07 PM

Quote:

Originally Posted by TheFlamesBoeing

Hi All,

Whenever I look above to the sound of an airplane's engines, at least 90% of the time its a Westjet 737. They've got more routes in Western Canada than any other airline.

Does anybody invest in Westjet? Would it be a good choice?

Any airline is a high-risk investment. What do you like about the stock?

ricosuave · 06-20-2011, 06:00 PM

Invest in an airline? ha sure. If you like throwing money away.

When the price of oil hits $100 and above again (and it will), you can bet that the airlines will suffer.

Five-hole · 06-20-2011, 06:21 PM

I'm just waiting for the green airline that uses airplanes powered by hopes and dreams. And kittens. I'll invest in that.

TheFlamesBoeing · 06-20-2011, 08:20 PM

Quote:

Originally Posted by Sliver

Any airline is a high-risk investment. What do you like about the stock?

I have had great fortune off monopolies in the past, ie Microsoft before around 1998. And Motorola up until 2004. So I was just curious.

FlamesAddiction · 06-20-2011, 08:23 PM

I don't get the love affair with Westjet. I find their service is on par with Air Canada.

I travel a lot, and the only really horrible experience I have ever had with an airline was with Westjet as well. Now they are strictly my plan B.

Maritime Q-Scout · 06-20-2011, 08:27 PM

You know the quickest way to become a millionaire?

Start off a billionaire and buy an airline.

I love aviation, but there's not really any money in it.

Slava · 06-20-2011, 08:37 PM

Quote:

Originally Posted by TheFlamesBoeing

I have had great fortune off monopolies in the past, ie Microsoft before around 1998. And Motorola up until 2004. So I was just curious.

So can you just explain how they have a monopoly here? I think I missed that part.

sa226 · 06-20-2011, 08:53 PM

Quote:

Originally Posted by Bigtime

I wouldn't touch airline stock with a ten foot pole.

The original investors in Westjet laugh in your general direction while they swim in their mountains of money.

In short: No Westjet does not have a monopoly and any wise investor would probably not invest in an airline.

However if you had to choose an airline to invest in, Westjet should be numero uno.

I don't really follow airline stock and stuff like that, but I seem to remember that during the downturn, when airlines around the world were bleeding money as they usually do, Westjet still turned a modest profit. I could be wrong though.

Kjesse · 06-20-2011, 09:08 PM

Quote:

Originally Posted by Slava

So can you just explain how they have a monopoly here? I think I missed that part.

Customer Service.

Slava · 06-20-2011, 09:11 PM

Quote:

Originally Posted by sa226

The original investors in Westjet laugh in your general direction while they swim in their mountains of money.

In short: No Westjet does not have a monopoly and any wise investor would probably not invest in an airline.

However if you had to choose an airline to invest in, Westjet should be numero uno.

I don't really follow airline stock and stuff like that, but I seem to remember that during the downturn, when airlines around the world were bleeding money as they usually do, Westjet still turned a modest profit. I could be wrong though.

Just because someone can make money doing something or investing in something doesn't mean it's a good investment though. Common misconception of investing.

Shazam · 06-20-2011, 10:02 PM

Ludicrous high fixed costs, a massive dependance on cheap oil, high demand elasticity... I give them another 15 years before the whole airline industry collapses.

SebC · 06-20-2011, 10:16 PM

Quote:

Originally Posted by Slava

So can you just explain how they have a monopoly here? I think I missed that part.

Anecdotal evidence. The best kind of evidence!

bomber317 · 06-20-2011, 11:38 PM

Quote:

Originally Posted by Slava

Just because someone can make money doing something or investing in something doesn't mean it's a good investment though. Common misconception of investing.

Better questions would be...

What are Westjets margins vs AC?
How can Westjet improve their margins?
What is Westjet's market share vs AC?
What is the direction that Westjet's CEO is taking in growing the company?
What is the direction that AC's CEO is taking in growing the company?

A good move to increase margins would be business and executive class. Can they pull it off? Is it in their plans? I honestly do not know and just throwing that out there.

Saying a company "seems" to be doing well to legitimize a stock purchase is risky.

Shazam · 06-20-2011, 11:47 PM

AC and WJA both operate in a very protected market.

I've said for ages that the federalis should let any carrier fly any route. Then let's see what happens.

STeeLy · 06-21-2011, 12:01 AM

Quote:

Originally Posted by FlamesAddiction

I don't get the love affair with Westjet. I find their service is on par with Air Canada.

Currently, yes!

4 or 5 years ago... definitely not.

WestJet was much better than Air Canada 4 or 5 years ago in terms of service and prices.

Not to say that WestJet is getting worse, but Air Canada has caught up in terms of customer service and the prices are pretty damn close to WestJet.

Slava · 06-21-2011, 07:26 AM

Quote:

Originally Posted by Shazam

AC and WJA both operate in a very protected market.

I've said for ages that the federalis should let any carrier fly any route. Then let's see what happens.

That's pretty simple to predict though? The routes that are profitable see increased competition and lower prices, while the routes that are unprofitable see no competition and either lose some flights or lose service all together.

bizaro86 · 06-21-2011, 09:40 AM

Quote:

Originally Posted by Shazam

AC and WJA both operate in a very protected market.

I've said for ages that the federalis should let any carrier fly any route. Then let's see what happens.

??? I'm pretty sure if you started a new airline in Canada you could fly it to any airport you'd like. Foreign carriers can't fly domestically within Canada, but there aren't restrictions on where domestic airlines fly.

If Porter wanted to open up an operation in the Calgary-Vancouver-Edmonton triangle, they could.

Shazam · 06-21-2011, 09:51 AM

Quote:

Originally Posted by Slava

That's pretty simple to predict though? The routes that are profitable see increased competition and lower prices, while the routes that are unprofitable see no competition and either lose some flights or lose service all together.

AC is bound (as in, they have to) to fly some routes due to legislation.

Quote:

Originally Posted by bizaro86

??? I'm pretty sure if you started a new airline in Canada you could fly it to any airport you'd like. Foreign carriers can't fly domestically within Canada, but there aren't restrictions on where domestic airlines fly.

If Porter wanted to open up an operation in the Calgary-Vancouver-Edmonton triangle, they could.

That's the part that protects them.

bizaro86 · 06-21-2011, 09:53 AM

Quote:

Originally Posted by Shazam

That's the part that protects them.

Any time airline profits start getting high, someone starts a new airline. Every single time. It's an industry that people with money find romantic, so it keeps getting new capital.

If prices rise too much more, you'll start seeing new domestic entrants.