Had I just read the article by itself, I wouldn't have thought much of it Stuart. I recently tried to book a flight on Westjet foe my brother, from Vancouver to Detroit (he's going to Windsor) and was disappointed that Westjet didn't offer that service. Instead, I used (wasted) 50,000 aeroplan points to make the trip.

I don't know anything about the airline industry, but after reading your comments, it sounds like Westjet is about to step off the yellow brick rode on their way to see the wizard. And we all know what happens when Dorothy did that... ok, bad example.

So, what would your recommendation be for Westjet?

Thanks for the comment, Ben.

And that answer isn't one I'm going to be giving away for free :)

Good articles, Stuart.

First, let's really look deep into what made Westjet successful! LOW COST CARRIER, like most others, based on the Southwest model, which after 30+ years is STILL very successful.

Now, Westjet, like all previous Canadian based carriers, they enter small, bill themselves as the "underdog" to woo over customers. When they get their ducks in order, they want a bigger piece of the pie; which is fine, BUT when you change your operating model (which up to that point was VERY successful), to take on THE BIG GUY (Air Canada), things change.

Do they really think Air Canada would just roll over and play dead? Don't think so. They, fortunately for them, unfortunately for us, had the wisdom to change their operating model to reflect current economic/competitive conditions. Yes, they went through CCAA (who wouldn't after being forced to takeover their eternally (money) bleeding foe Canadian Airlines for a mere $98M only to get in return 1) old, battered mix mash of airplanes: DC-10 (gone), B737-200 dating back to the early days of PWA, EPA, CP AIR etc... (gone), B767-300's (who appear to have been purchased at fire sales when you look at the conditions of the cabins, layouts, with over 9 different types of configurations etc...) and equally tired A320's. OH, let's not forget, a whopping $2B+ debt.

Wow, that's a DEAL? NOT!

To top it all off, Westjet took advantage of this low point in the history of Air Canada to propel themselves to the forefront (albeit in Western Canada) and be much more affordable to the public than it's rival. They expanded, renewed their fleet, did a wonderful job of marketing themselves as THE best, lower cost alternative to AC. Their marketing department did a GREAT job of putting Westjet on many travelers mind, and convince them of by-passing the very expensive Air Canada network.

Today, Air Canada re-invented themselves after CCAA, and truly are giving Westjet a run for their money with "most of the time" lower ticket prices than Westjet. But many consumers STILL believe Westjet is the lower cost alternative, and don't even shop around. If they did, they most likely would have had a better deal with Air Canada by directly booking on the airline's web site than buying from Westjet. Their "lower price" branding still remains in the public's mind... for now, even though they are not anymore.

So, all was well... then someone decides to GO and try to knock down our national flag carrier which has been around for 70 years now. They (Westjet) broke their Southwest based Low Cost model by 1) moving operations from Hamilton to Pearson (the most expensive in the world), 2) start flying to destinations outside Canada, and now they're aiming for... The World??? They want to become a Top 5 worldwide carrier within 10 years! All I have to say to them is: Good Luck, you'll need it.

To achieve this, here's what's missing:
- First and/or Business Class
- a loyalty program (not Airmiles or the likes)
- their own premium flyer lounges (not shared no name space)
- a worldwide network to fly their customers to, unless they prefer to fork over money AND passengers to alliance/partner airlines who will reap the benefits
- a diversified fleet to be able to deploy market driven capacity demands, because single aircraft type may save you money in associated costs, but if you fly too small or large capacity aircraft on certain routes, you'll lose those synergy savings... and not the mention the range required for a specific route. Have you every tried to fly a B737 from Vancouver to Shangai??? It might make it if you remove all passenger seats and replace them with extra fuel tanks, but how much money would they earn doing that???

These are some of the chronic problems of "new entry" carriers in Canada, with the exception of a very few disciplined carriers... well, make that ONE carrier: Air Transat. They have never aimed at knocking down the big guy... instead, they go pretty much incognito and under the radar by the big guy(guys) by concentrating on "their own" niche markets. Over 20 years now.

A lesson or two could be learned by Westjet and other interested entrants from Air Transat.... Do your own thing, and don't aim to dethrone the dominant player. If they had stuck to the LCC model they had, I could see them being around for MANY years to come, but having jumped the fence from Low Cost Carrier model to that of the Full Service (Legacy) Carriers... they're entering a league for which they are ABSOLUTELY not ready for, and honestly I believe will be the start of the rapid decline for Westjet, which will make room for another new entrant (carrier) in Canada. They will do to Westjet, what Westjet did to Canadian, Air Canada, Canada 3000, Jetsgo, Royal, etc... they will undercut them, put the squeeze on them and show the Canadian travelling public that yes, there is room for a DISCIPLINED Low Cost Carrier in Canada. I'm sure they will be very successful as long as they show restraint and lots of discipline, and not be tempted like all predecessors to bring out their (water) guns and aim them at the big guy (guys). Otherwise, it will be history repeating itself over and over and over again.

When that happens, I'll be very much looking forward to new catchy Westjet commercials: "We WERE owners". LOL

Salutations,

Aviation Czar by Passion
from Calgary

Thanks for that, Czar. On the Transat point, I think you are right that they are often forgotten or overlooked, and that they have done a good job. But, it's worth remembering that their principle business is flying between France and Quebec, where they have been able to benefit from higher ex-Europe pricing and long-haul economics. They don't have to worry about things like schedule coordination, and - like all charter operators - can simply pull a route very quickly should they choose to.

In fact, on that last point, most major carriers could learn a thing or two from how quickly charter operators will react to softening numbers. Fast reactions aren't exactly their strong suit.

Thanks again for the comment - please come back again.

- Stuart