WestJet Rewards - Sean Durfy resigns; Gregg Saretsky replaces him

Sean Durfy announces resignation from WestJet
Gregg Saretsky appointed new President and CEO

CALGARY, March 15 /CNW/ - WestJet today announced the resignation of President and CEO Sean Durfy effective April 1, 2010. Mr. Durfy will also resign from the board of directors at that time. Mr. Durfy has cited personal reasons for his departure.

"This was a very difficult decision for me; however, after careful consideration, I have decided that this is best for me and my family," said Sean Durfy. "Those things I set out to accomplish at WestJet have now been achieved and I believe this is an appropriate time to allow others to carry the torch while I spend more time with my young family."

Sean Durfy joined WestJet in 2004 as an Executive Vice-President responsible for overseeing all aspects of the company's marketing, sales and airport operations functions and leading the introduction of the successful WestJet owner's communications platform. In September 2006, he was appointed President and assumed the role of CEO in September 2007. He spearheaded the company's long-term strategic growth initiatives, which led to the successful launch of WestJet Vacations and, most recently, the implementation of two new reservation systems, airline partnerships and the WestJet reward programs.

Sean Durfy commented, "I am immensely proud of all we have accomplished together. I am most proud of the fact that I leave with WestJet's renowned culture stronger than ever and that the 'little airline that could' is positioned to accomplish the vision we have put forth - to be one of the most successful international airlines in the world by 2016."

Clive Beddoe, WestJet Chairman, added, "We will miss Sean's passion and leadership at the executive and board level and we sincerely thank him for his tremendous contributions to WestJet over the past several years."

A special committee of the board undertook a process to manage the selection of a new President and CEO.

"After a search for the most suitable candidate capable of supporting our planned growth, extending our brand strength and leading our award-winning culture, I am pleased to announce the appointment of Gregg Saretsky as President and CEO of WestJet effective April 1, 2010," commented Clive Beddoe.

Gregg Saretsky joined WestJet in June 2009 as Vice-President, WestJet Vacations, before assuming the role of Executive Vice-President, Operations, in October 2009.

"As a 25-year airline industry veteran, Gregg has been a valuable member of WestJet's executive team. He brings a wealth of knowledge and experience to the President and CEO role and we are confident his background will provide the leadership and experience required to achieve our strategic plans," continued Clive Beddoe.

Gregg Saretsky began his career in the airline industry in 1985 with Canadian Airlines. While at Canadian, he held a number of operations and marketing roles, including Vice-President, Airports, and Vice-President, Passenger Marketing. Following his departure from Canadian in 1998, Gregg joined Seattle-based Alaska Airlines as Executive Vice-President, Marketing and Planning. In December 2008, he left Alaska as Executive Vice-President, Flight and Marketing. With his combined tenure as a seasoned airline executive, Gregg has extensive experience successfully operating within one of the most competitive airline markets in the world and an impressive track record on the commercial and operations sides of the business.

His many accomplishments at Alaska include establishing airline alliances; he developed one of the most effective networks of partners among U.S. airlines, which supported the airline's rapid growth and profitability. In addition, he developed new ancillary revenue streams, including an award-winning reward program. Gregg was also instrumental in the establishment of many cost-saving initiatives, making Alaska one of the most efficient airlines in North America.

"These qualifications along with his demonstrated ability to lead a guest-focused culture are ideal for charting and executing our flight path ahead," said Clive Beddoe.

"I'm absolutely delighted by this new opportunity," said Gregg Saretsky. "WestJet has been the envy of the airline industry for a number of years. As a proud Canadian, I am amazed by what this organization has achieved in its 14-year history. I am also honoured to be associated with, and leading a team of, exceptional WestJetters who have created a remarkable company culture, a renowned brand and a formidable airline. I look forward to the many opportunities we have in front of us to continue to profitably grow our airline and fulfil our vision."

Sean Durfy has agreed to remain with WestJet until September 1, 2010, and will assist the company with the transition. An executive search to replace Mr. Saretsky's Executive Vice-President, Operations, role will commence immediately.

This marks a pretty significant shift in Westjet's management mode. I am guessing that there will be much more aggressive moves to get those long promised code sharing and other alliances going forward, which Westjet has so far not managed very well. There should be some interesting times ahead. I wonder how much of this has to do with the problems that the change over to Sabre caused, which surely harmed the brand?

Dear Mr. Saretsky,

Please join oneworld, purchase some widebodies and dump the Southwest codeshare.

Sincerely, TheGreatestX

In addition to new alliances, I wonder if it will lead to a frequent flier programme as well.

Why OneWorld. It appears SkyTeam would be a better fit.

Durfy really must have pissed off Clive somehow.

Why OneWorld. It appears SkyTeam would be a better fit.

I think the Alaska model would be best, which multiple partners with increased flexibility.

Looking forward to seeing where this could lead to. I think its fair to say a change was needed (esp with the Sabre switch-over and the initial launch of the frequent flyer programme)

I wonder if there is more to the story (not that there is in this case). Whenever I hear about a top executive quitting I always think that another shoe is about to drop.

Why OneWorld. It appears SkyTeam would be a better fit.

Agreed. To me it seems like WS is much further along the line of partnering with Skyteam carriers than Oneworld (notwithstanding previous media articles regarding BA, etc. when BA started flying to YYC).

http://www.flyertalk.com/forum/westjet-frequent-guest/918238-westjet-air-france-klm-announce-signing-memorandum-understanding.html

A few months ago a co-worker of mine had a ticket from YEG to europe that was for WS and KLM. As far as I know it was a single ticket, and I have not heard of WS doing full interline with other airlines.

I think the Alaska model would be best, which multiple partners with increased flexibility.

Looking forward to seeing where this could lead to. I think its fair to say a change was needed (esp with the Sabre switch-over and the initial launch of the frequent flyer programme)

Gregg Saretsky came from Alaska Airlines airlines; I could easily see him trying to adopt similar practives with WS.

Well, as a WS employee, I am shocked to learn of this, but also not surprised. Some time ago, Mr. Durfy's wife was seriously ill and perhaps his resignation has something to do with that. I wish him and his family all the best!

Dear Mr. Saretsky,

Please join oneworld, purchase some widebodies and dump the Southwest codeshare.

Sincerely, TheGreatestX

Dump something that never got off the ground? :confused:

When I read this I was a bit :eek: and I can't help but wonder if the "personal reasons" and speedy exit is code for pushed out.

A few months ago a co-worker of mine had a ticket from YEG to europe that was for WS and KLM. As far as I know it was a single ticket, and I have not heard of WS doing full interline with other airlines.





I noticed too recently that one could book what appeared to be a single ticket (I never completed the booking so do not know for sure) from YQR-AMS via YYC on the KLM site (in any case, it was book-able off the site). Westjet, of course, flying the first and last segments. Until recently, the KLM site would push one through MSP on NW for this booking.

It will be interesting to see whether or not the change at the top accelerates such partnerships. More competition for TATL with through service to or from more Canadian cities would be a good thing.

Wow, this is great news. Mr. Durfy was thinking too "small-potatoes". Hopefully, Mr. Saretsky has a more strategic vision.

Please join oneworld, purchase some widebodies and dump the Southwest codeshare.

It would be absolutely wonderful it those two happened. While I can't see any widebodies in WS' immediate future, they better be nothing less than 787's when the time comes.

I wonder if it will lead to a frequent flier programme as well.

I'm wondering the same thing. Their current program is pathetic and fails to appeal to any business pax. I would even say it drives revenue away.

Why OneWorld. It appears SkyTeam would be a better fit.

By which measurement do you come to that conclusion?


I think the Alaska model would be best, which multiple partners with increased flexibility.

AS has a niche market(pacific-northwest) that gives their network value to other airlines. I see very little in the WS network that AC fails to cover as well.

I was fairly certain that we wouldn't see WestJet joining any alliance, now I'm CERTAIN of it.

WestJet has frequently denied interest in paying huge sums of money to join these networks, and would rather partner with airlines outside of these alliances and thus enable us to work with everyone! With Saretsky at the helm this is certainly not going to happen.

Even after frequently denying they'll be be buddying up with OneWorld or Skyteam, people here keep harping on about which one they'll join!

Why pay truckloads to help market one set of airlines (for little benefit to an airline like WestJet), when for next to nothing you can forge your own set of partnerships with ALL of them and have THEM working for YOU?

Also, KLM has been selling WS sectors for a while now though sales ramped up a lot since WS switched to SABRE. All tickets are issued on KL ticket stock and can only be purchased through KLM channels. Bags are thru checked to final destination but right now pax must check in and receive a boarding pass from the operating carrier BUT this is going to change in the coming weeks. Right now its only for KL flights to/from YVR and YYC and I believe only to WS destinations of YVR/ YYC & YEG but this also will change soon. It will be extended out East and include Air France flights.

But for right now, best wishes to Durf and congrats to Saretsky.

I was fairly certain that we wouldn't see WestJet joining any alliance, now I'm CERTAIN of it.

WestJet has frequently denied interest in paying huge sums of money to join these networks, and would rather partner with airlines outside of these alliances and thus enable us to work with everyone! With Saretsky at the helm this is certainly not going to happen.

Even after frequently denying they'll be be buddying up with OneWorld or Skyteam, people here keep harping on about which one they'll join!

Why pay truckloads to help market one set of airlines (for little benefit to an airline like WestJet), when for next to nothing you can forge your own set of partnerships with ALL of them and have THEM working for YOU?

Also, KLM has been selling WS sectors for a while now though sales ramped up a lot since WS switched to SABRE. All tickets are issued on KL ticket stock and can only be purchased through KLM channels. Bags are thru checked to final destination but right now pax must check in and receive a boarding pass from the operating carrier BUT this is going to change in the coming weeks. Right now its only for KL flights to/from YVR and YYC and I believe only to WS destinations of YVR/ YYC & YEG but this also will change soon. It will be extended out East and include Air France flights.

But for right now, best wishes to Durf and congrats to Saretsky.

I don't get why people think WS is going to join Oneworld. The wheels are already in motion for WS to interline/codeshare with KLM/Air France, British Airways, Cathay, and Southwest and NOT join an alliance. You're correct in your last paragraph, though. ^

Wow, this is great news. Mr. Durfy was thinking too "small-potatoes". Hopefully, Mr. Saretsky has a more strategic vision.

I'm wondering the same thing. Their current program is pathetic and fails to appeal to any business pax. I would even say it drives revenue away.

Continuous growth is what Durf did well, the same philosophy Clive had, keeping the airline profitable in all economic climates. I don't think you'll see a "bet the farm" attitude from Gregg either. Durf has proven to be one of the best airline CEOs of current times. Durf's strategic outlook has always been at least 10 years, better than the average CEO.

The Rewards / Frequent Guest program was launched less than 2 weeks ago and in it's very early days has hit the right target from a take-up perspective (the target is not the very frequent business traveler). Durf's grooming of Gregg for the CEO position likely started in the interview process last year and certainly didn't happen overnight. There isn't the slightest link between Durf's resignation and the Rewards program. The news release says it all - he needs to spend time with his wife and young 3 and 7 year old kids, that the rapid pace of the job has left little time for over the past few years.

Durf's grooming of Gregg for the CEO position likely started in the interview process last year and certainly didn't happen overnight.

Gregg was hired on as VP of WJ Vacations - a far cry from next in line for CEO. I think it would have been in june, when he was promoted to COO that he would maybe have known.

I also think over the last 6 months, Durf has been working CRAZY hours with all of the mishaps with Sabre, and he wasn't getting much lovin from his wife.

Gregg was hired on as VP of WJ Vacations - a far cry from next in line for CEO. I think it would have been in june, when he was promoted to COO that he would maybe have known.

I also think over the last 6 months, Durf has been working CRAZY hours with all of the mishaps with Sabre, and he wasn't getting much lovin from his wife.
At the time Gregg was hired as VP of WVI, it seemed strange that he would move down from EVP at Alaska to the VP position at WS (after leaving when a new President was appointed, perhaps a job that he failed to win). Getting someone in with the right experience, then waiting for an opening (Ken's position in this case), would seem like a good plan from an accession perspective. Who knows?

I like that he comes from Alaska. I think this is a good fit for WS.

...
The Rewards / Frequent Guest program was launched less than 2 weeks ago and in it's very early days has hit the right target from a take-up perspective (the target is not the very frequent business traveler).

...


Hmm, couldn't disagree more. If the "take-up pespective" refers to people registering, there's no cost, so that doesn't say much.

As a Westjet loyalist until this year (and now flying out of YLW, where Westjet was more convenient), the current program has entrenched my move to Air Canada.

The reality is very few non-business travelers will hit even the lowest level in the Westjet program, and on any comparison I've seen, any traveler that hits the higher levels would be better off with AC.

Maybe Durfy can go to AC after a brain break. :D

http://www.montrealgazette.com/business/fp/Turbulence+ahead+WestJet+after+resigns/2686191/story.html

"We expect this sudden news to create increased near‐term uncertainty about WestJetʹs outlook. We therefore continue to advise caution on WestJet shares and prefer OUTPERFORM‐rated Air Canada shares as a means of capitalizing on the incipient recovery in the global airline industry," he added.

I wonder if there is more to the story (not that there is in this case). Whenever I hear about a top executive quitting I always think that another shoe is about to drop.



Agreed. To me it seems like WS is much further along the line of partnering with Skyteam carriers than Oneworld (notwithstanding previous media articles regarding BA, etc. when BA started flying to YYC).

http://www.flyertalk.com/forum/westjet-frequent-guest/918238-westjet-air-france-klm-announce-signing-memorandum-understanding.html

A few months ago a co-worker of mine had a ticket from YEG to europe that was for WS and KLM. As far as I know it was a single ticket, and I have not heard of WS doing full interline with other airlines.



Gregg Saretsky came from Alaska Airlines airlines; I could easily see him trying to adopt similar practives with WS.

Great point. All they would really need is the DL/KLM/AF link plus Korean and Alitalia to feed their network. Only missing piece would be China and Japan.

Hmm, couldn't disagree more. If the "take-up pespective" refers to people registering, there's no cost, so that doesn't say much.

As a Westjet loyalist until this year (and now flying out of YLW, where Westjet was more convenient), the current program has entrenched my move to Air Canada.

The reality is very few non-business travelers will hit even the lowest level in the Westjet program, and on any comparison I've seen, any traveler that hits the higher levels would be better off with AC.
Time will tell in how successful the current program is and how it needs to be tweeked, there are specific targets to be hit. There is a fine line between liability in our cost base versus increased revenue from loyalty (no benefit in hammering yield). It is always easier to start thin and optimise up from there, not starting fat and trying to optimise down.

http://www.winnipegfreepress.com/canada/breakingnews/westjet-shares-fall-37-per-cent-after-sean-durfy-resigns-as-president-and-ceo-of-westjet-87791317.html

CALGARY - WestJet Airlines Ltd. will continue to press into international markets through deals with other carriers, the company's new incoming chief executive said Tuesday.

The Calgary-based discount airline (TSX:WJA) already has plans to roll out code-share deals with Air France, the Netherlands' KLM and Texas-based Southwest Airlines (NYSE:LUV).

Building on that, WestJet wants to see traffic from Asia, South America and elsewhere in Europe come to Canada on its network, Gregg Saretsky told a news conference, a day after the surprising resignation of Sean Durfy as president and CEO, effective April 1.

Gesturing to a model of the small Boeing 737 planes WestJet currently has in its fleet, Saretsky said: "I don't think you'll see this aircraft flying across the Pacific anytime soon."

So code-share arrangements - which allow passengers to seamlessly travel from one airline's network to another - are the only way to achieve that international growth.

"Our goal is to have good coverage on all continents," Saretsky said in an interview after the news conference.

"Because of our reputation we have lots of airlines beating a trail to our door. We're going to be pretty choosy. We're going to pick those that have the same service culture and a great reputation."

Time will tell in how successful the current program is and how it needs to be tweeked, there are specific targets to be hit. There is a fine line between liability in our cost base versus increased revenue from loyalty (no benefit in hammering yield). It is always easier to start thin and optimise up from there, not starting fat and trying to optimise down.
The problem is by aiming too thin, people learn from the start to ignore the program. You even drive some people away, as others have posted. As it currently stands, the only people who are going to use the program are people who would fly WestJet anyway, so you are essentially giving them a 2.5% discount for no net gain.

The problem is by aiming too thin, people learn from the start to ignore the program. You even drive some people away, as others have posted. As it currently stands, the only people who are going to use the program are people who would fly WestJet anyway, so you are essentially giving them a 2.5% discount for no net gain.

Bingo! I was looking forward to something more robust and move my business to a skyteam carrier that WS could be a domestic provider. The new program has nothing for to pull AC business away.

The Calgary-based discount airline (TSX:WJA) already has plans to roll out code-share deals with Air France, the Netherlands' KLM and Texas-based Southwest Airlines (NYSE:LUV).

...

"Because of our reputation we have lots of airlines beating a trail to our door. We're going to be pretty choosy. We're going to pick those that have the same service culture and a great reputation."
Hmmm ... "KLM" and "service culture" don't really go together very well. Not really Air France's strongpoint, either.