** Analyst David Ocampo from Cormark Securities says the grounding of Boeing’s 737 Max operations will have a short-term negative impact on Air Canada and WestJet Airlines
** “We believe there will be a negative impact in Q1 and Q2 from the cost associated with rebooking delays and the lost capacity,” says Ocampo on Boeing groundings
** So far, WestJet Airlines and Air Canada have suspended 2019 forecasts after Boeing groundings
** Ocampo resumes coverage on Air Canada with ‘Buy’ rating and C$47 target and WestJet with ‘Market Perform’ rating and C$21 target
** Ocampo says conditions look favourable for airlines operating in Canada and expects market to remain balanced till 2020
** Broker believes Air Canada provides “best value” in the Canadian airline space as all the drivers are in place for a strong 2019 and beyond
** Ocampo adds that WJA is likely going to have below-market fares, putting further pressure on already depressed results
** Expect more balanced supply-demand environment should allow both airlines to increase ticket prices in 2019 - Ocampo
** So far, this year, AC shares gained ~22 pct, much more than the 8 pct gain by WJA
Reporting by Karina Dsouza in Bengaluru
