Industry watchers expect WestJet to remove routes from the Toronto-Montreal-Ottawa triangle as part of the airlineB次元官网网址檚 new strategy to focus future growth on Western Canada.
But far from being a downsizing, experts say WestJetB次元官网网址檚 latest move is actually a B次元官网网址済rowth storyB次元官网网址 that will see the Calgary-based airline bulk up its fleet and add service to more communities across the West.
On Thursday, the WestJet Group B次元官网网址 which is owned by Onex Corp. B次元官网网址 announced a plan to shift its resources in the wake of a strategic review of the companyB次元官网网址檚 operations.
Chief executive Alexis von Hoensbroech, a former Austrian Airlines CEO who assumed the helm at WestJet in February, said the airline is at a turning point as it grapples with pent-up travel demand in the wake of the COVID-19 pandemic, inflation, spiking oil prices and staffing shortages at airports.
Von Hoensbroech said to ensure its future success, WestJet has decided to focus its future investments on Western Canada, where it has a large portion of the market share and enjoys a reputation as the B次元官网网址渉ome-team carrier.B次元官网网址
B次元官网网址淲e will deploy our aircraft where they can be of greatest service to Canadians,B次元官网网址 von Hoensbroech said in a release. B次元官网网址淲hile we will be investing the majority of our fleet in the West, as a national airline we will maintain a significant presence in the Eastern provinces, primarily through direct connections to our Western cities.B次元官网网址
The announcement comes after WestJet has spent more than a decade adding routes to central and Atlantic Canada in an effort to go head-to-head with Montreal-based Air Canada.
WestJet also went from a single-ticket class, budget airline to one that offers business travel options and B次元官网网址減remium economyB次元官网网址 fares as well as long-haul, trans-Atlantic service with its fleet of Boeing 787 Dreamliners.
But in an interview, Calgary-based independent aviation analyst Rick Erickson said trying to compete with Air Canada by emulating it may have proved too challenging.
B次元官网网址淚 think what theyB次元官网网址檝e bumped up against is, Air Canada is a juggernaut. ThereB次元官网网址檚 no ifs, ands or buts about it,B次元官网网址 Erickson said.
Air Canada has a B次元官网网址渧ice-like gripB次元官网网址 on Eastern Canada, Erickson said, adding he expects to see WestJet B次元官网网址渢runcateB次元官网网址 the number of routes it offers out of Toronto, Montreal and Ottawa, while bulking up its offerings out of cities such as Calgary, Vancouver and Winnipeg.
B次元官网网址淭heyB次元官网网址檝e taken a very pragmatic approach, and theyB次元官网网址檝e said B次元官网网址榣ook, letB次元官网网址檚 go back to our roots, letB次元官网网址檚 go back to what our strengths are,B次元官网网址 B次元官网网址 he said. B次元官网网址淚 think theyB次元官网网址檙e going to attempt to build a fortress in the West.B次元官网网址
WestJet is not going to be pulling out of eastern Canada, simply adopting a philosophy of B次元官网网址渨in where you can win,B次元官网网址 said Robert Kokonis, president and managing partner of Toronto-based aviation consultancy AirTrav Inc.
He pointed out that WestJetB次元官网网址檚 announcement doesnB次元官网网址檛 mean a shrinking of CanadaB次元官网网址檚 second-largest airline. In fact, he said it could pave the way for future growth, noting that WestJet also said Thursday it is planning a B次元官网网址渟ignificantB次元官网网址 additional order of narrow-body aircraft beyond the 30 new Boeing Max airplanes the company is already slated to take delivery off over the next few years.
B次元官网网址淚 also think this is very good news for Alberta, as it really helps to reinforce AlbertaB次元官网网址檚 growth as a real aviation, business and economic centre,B次元官网网址 Kokonis said.
WestJet said Thursday it will maintain its current premium offerings, with a focus on strengthening its premium leisure segment and corporate premium in the West. The focus of WestJetB次元官网网址檚 regional fleet of De Haviland Q400 aircraft will be shifted and rightsized to focus on Western Canada.
The airline will also pause further investments in its wide-body fleet of Dreamliners for now. It said route and network changes as a result of ThursdayB次元官网网址檚 announcement will be phased in over time, with most taking effect by next summer.
WestJetB次元官网网址檚 acquisition of Sunwing Airlines, which is still pending, is expected to help the company enhance its leisure and vacation offerings.
Karl Moore, associate professor with the Desautels Faculty of Management at McGill University in Montreal, said WestJetB次元官网网址檚 strategy shift is the result of a new CEO who is looking at the companyB次元官网网址檚 operations B次元官网网址渨ith fresh eyesB次元官网网址 and questioning why WestJet is trying to compete on routes that are essentially locked up by Air Canada.
B次元官网网址淚 think he (von Hoensbroech) is looking at B次元官网网址榳hat are our strengths, what are their strengths,B次元官网网址 and heB次元官网网址檚 made some guesses about it,B次元官网网址 Moore said.
B次元官网网址淚 think heB次元官网网址檚 made the right guess B次元官网网址 but again, we donB次元官网网址檛 know what the future holds until it unfolds.B次元官网网址
B次元官网网址 Amanda Stephenson, The Canadian Press