WestJet Confirms Regional Airline Start-up Study

Posted 17/01/2012

Canadian carrier WestJet has confirmed that it is considering the launch of a new short-haul, regional airline as early as 2013 using a fleet of approximately 40 smaller, turboprop aircraft.  The new carrier is likely to operate a fleet of 70-seat aircraft like the ATR 72 or locally-produced Bombardier Dash 8-Q400 to serve smaller communities within Canada and will help WestJet enhance its position in the domestic Canadian market. 

The airline is now in discussions with its staff and has said it will make a decision of the new business over the course of the following months.  “This is an exciting consideration for WestJetters,” said Gregg Saretsky, President and Chief Executive Officer, WestJet.  “Once our employees have had the opportunity to share their input, we will be in a better position to make a sound decision rooted in employee feedback and engagement.”

This is not the first occasion that WestJet has studied revising its business model and it has regularly evaluated this strategy in the past, but has never committed to this final stage in the start-up process and speaking to its employees.  WestJet’s development strategy is currently limited by the fact it operates just a single aircraft family, the Next-Generation Boeing 737, offering between 119 and 166-seats in the airline’s configuration.

The arrival of a sister carrier with a smaller aircraft will enable the company to serve many smaller Canadian communities; create new connections between existing WestJet markets; build additional feed to the carrier’s existing 71-city network and ultimately continue to profitably grow and add shareholder value.

“A short-haul aircraft combined with WestJet's brand, balance sheet strength and low-cost structure will allow WestJet to profitably accomplish these four main goals,” added Gregg Saretsky.  “This would be the natural evolution of our airline," concluded Gregg Saretsky. “We have built a powerful brand that has been embraced by the travelling public from the start.  Our goal now is to provide more Canadians with more access to lower fares and our friendly and caring guest experience.”

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