WestJet Rewards - WestJet mulls regional airline for 2013

http://business.financialpost.com/2012/01/16/westjet-mulls-launching-new-regional-airline-in-2013/

Not sure how I feel about this. If I have to fly to YYC I like a jet as opposed to AC's props. Great for smaller communities that would now get a choice. I could see Westjet offering some additional Okanagan service from YEG and YYC and perhaps YVR. On the other hand YQR and YXE would likely get propped to a large degree. Might see SEA from YYC and YEG too but not sure there is enough O&D traffic there.

WS realize that there's money in it;

I think (by quite a large margin) YVR-YYJ is the biggest market they're not in (QK operate what, 16x/daily?)

Brandon, MB would like to see WestJet return:

http://winnipeg.ctv.ca/servlet/an/local/CTVNews/20120116/wpg_westjet_brandon_120116/20120116/?hub=WinnipegHome

WestJet used to serve Brandon with 737s at a time when there weren't too many connections available. I would guess service with a turboprop and the possibility of connections all over North America could make this more viable now.

On the other hand YQR and YXE would likely get propped to a large degree.

It's possible on some routes, but on the other hand it may actually allow for the resumption of YXE/YQR-YWG service.

What domestic routes or destinations would you like to see Westjet add to a network served by this regional airline?

Nanaimo, Lethbridge, Cranbrook,Toronto City Centre are destinations that I would to see added and YXE/YQR-YWG, YDF-YYT are routes I'd like to see added.

It's possible on some routes, but on the other hand it may actually allow for the resumption of YXE/YQR-YWG service.

It would be like returning to the past... I remember riding on CP's turboprops YWG-YXE back in the mid-90s. I don't fly this route these days, but I do know a couple of other people who would appreciate having an option.

The folks in Brandon are pretty excited about the possibility of YBR-YYC runs. There is some potential for that to happen given the size of the market combined with the oil and gas growth in the SW corner of the province with ties to Alberta-based energy companies, but if I were a Brandonite I wouldn't hold my breath. Like YQF, Brandon might be just a little too small and a little too close to a major airport.

FWIW I would love to have even turboprop service YWG-MSP. With the codeshare agreements WJ is coming up with, I think that a fair number of YWG travellers would use this alternative to DL (or going to YYZ) as a gateway to the US or beyond.

I'd personally rather that WestJet used smaller regional jets than turboprop planes (E145s or E175s would be great and far more comfortable than most turboprops) but I've heard decent things about the Bombardier Q400s. If this is the aircraft that WestJet has in mind, it might not be too bad.

I think YQR/YXE-YYC is a pretty good route for WestJet so downgrading it might not make sense, unless the idea is to increase frequency. I agree that YQR/YXE-YWG might make a lot of sense, or increasing frequency on YQR/YXE-YEG and -YVR might be easier with regional aircraft.

United's snatched a lot of traffic from Air Canada thanks to its ORD and DEN flights from both YXE and YQR, all on RJs (mostly CRJ-200s) so there might be opportunity for WestJet there, too. Delta doesn't fly to SLC from either city; could WestJet, to take advantage of the DL hub there? Where does American hub?

WS realize that there's money in it;

I think (by quite a large margin) YVR-YYJ is the biggest market they're not in (QK operate what, 16x/daily?)

I'm guessing 90% of those pax are on connecting flights.
Most of the real market is served by Helijet and Harbour Air.

I interpreted from the article “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” to mean once we figure out if our employees are willing to take a pay cut to work at a regional carrier. ;)

Assuming they go with a prop plane for the regional carrier, I wonder what the regional carrier would be?

Some suggestions:


WestProp
WestJet Express
WestJet Blues/Reggae/Folk/Some other sort of music :D

with 40 planes coming its going to add a lot of feeder traffic to West Jet, and steal a lot of traffic from AC.

Where is WestJet going to get the DH-400s for 2013?
There is a lag time between ordering and delivery.

Is Porter in the picture?

2013 is a long ways away.
Wouldn't be hard to get one from a leasing company or another carrier that has too many.
I'm sure this isn't the first time BBD has of Westjet's plans. There may be a few special spots saved on the delivery line.

West Jet can get some Q400 in 2013, i just read that in the paper last week Bombardier does not have a huge order book for the planes. Also West Jet like anyone will phase the planes in.

Is Porter in the picture?

Porter is asking too much - Westjet isn't interested.

I interpreted from the article “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” to mean once we figure out if our employees are willing to take a pay cut to work at a regional carrier.

I like the approach the WestJet Executive is taking. They want employees to be engaged and they want to know the good, the bad, and the ugly. Employees vote on the proposal and needs 50%+1 to pass, although I would be surprised if it were less than 70%. I'm not sure why you think Westjet employees would be taking a pay cut other than to be a dick?

Assuming they go with a prop plane for the regional carrier, I wonder what the regional carrier would be?

Some suggestions:


WestProp
WestJet Express
WestJet Blues/Reggae/Folk/Some other sort of music :D


WestJet X

WestJet Connect

WestJet X

Ted :D

I like the approach the WestJet Executive is taking. They want employees to be engaged and they want to know the good, the bad, and the ugly. Employees vote on the proposal and needs 50%+1 to pass, although I would be surprised if it were less than 70%. I'm not sure why you think Westjet employees would be taking a pay cut other than to be a dick?

This is a mixed message to me. Management probably knows what they want to do, they should just do it.

If the concept fails, who is accountable? Management? or are they off the hook because employees voted for it too?

cheers

I'm not sure why you think Westjet employees would be taking a pay cut other than to be a dick?
Who is the dick now? ;)

"WestJet Airlines Ltd. (WJA-T11.53-0.13-1.11%) is seeking to expand operations under a two-tier structure, gambling on maintaining labour harmony by giving its non-union pilots veto power over the carrier’s bold plans to launch a regional service that will pay reduced wages."

http://www.theglobeandmail.com/globe-investor/westjet-seeks-pilots-blessing-for-proposed-regional-carrier/article2305963/

I was just pointing out the reality of bringing in a second much smaller turboprop into the fleet. Did you think they were going to introduce the aircraft and pay the pilots double what they would earn at Jazz? (and yes I understand that existing pilots will almost certainly be "grandfathered" and not have to take pay cuts, but new hires will come it at much lower salaries)

This is a mixed message to me. Management probably knows what they want to do, they should just do it.
Look what happened to AC when they tried to "just do it" with a LCC to vacation destinations. It caused all kinds of labour problems for them and is still not off the ground.

WS has a much smarter approach to introducing controversial new measures - it works hard to get staff buy-in first (which is much easier when you don't have to negotiate it through a union).

This is a mixed message to me. Management probably knows what they want to do, they should just do it.

If the concept fails, who is accountable? Management? or are they off the hook because employees voted for it too?

cheers

Employees are also owners.

Employees are also owners.

thats a valid point, however, no mention of running this concept by the owners, just the employees? even worse, is management off the hook because some employee owners voted for it?

cheers

thats a valid point, however, no mention of running this concept by the owners, just the employees? even worse, is management off the hook because some employee owners voted for it?

cheers
Without being inside WestJet, you won't have an understanding of the culture. Management is not trying to to either be "on the hook" or "off the hook". They believe this is the best way forward for the company and are trying to convince all employees this is the way to go. Employees have input on this major decision.

Perhaps if you understand a few other cultural things, this may make more sense:

- All of the company executive get to park in the general parking lots together with most other employees. Employees who are disabled, receive Kudos, or pay for parking after winning spots in an annual lottery, are the ones you will find parking inside the building.

- At corporate events senior management will be found at the back of the buffet line, not at the front.

- All senior managers are expected to help groom aircraft (along with all other employees) when they fly, whether it is for business or pleasure.

- On the intranet site (WestNet) any idea, comment or discussion from anyone (Gregg, the Board of Directors, EVPs or call centre agents, it doesn't matter) can be discussed and voted on by every employee.

- Gregg, the EVPs or other figureheads within the company continually interact with any employees in the company, they will talk to them, have lunch with them or generally interact with them as colleagues.

- When the new building was designed, only VPs and above were assigned offices due to the need for private discussions, but their offices are in the core of the building, all other employees get the window seats and the "right to light".

I'm guessing 90% of those pax are on connecting flights.
Most of the real market is served by Helijet and Harbour Air.

Exactly it's connecting traffic. YYJ-YVR-LAX YYJ-YVR-SNA YYJ-YVR-SFO YYJ-YVR-PSP YYJ-YVR-YXS YYJ-YVR-OGG YYJ-YVR-YKA are all possible YYJ connections on WS mainline unserved direct from YYJ.

As for your 'real market' comment, yes, the O&D tends to go downtown-downtown; but YYJ is a significant destination within Canada, in a large part due to teh fact it may be only 30 miles from YVR-YYJ, but it's a 4 hour journey by boat/road

It should be interesting to see what comes of this? Destinations etc. I think it's a good idea in just that, I think the prop type planes are possibly a bad idea though, which are the first to get cancelled in a BAD WX days... not the jets...Jazz's small planes are usually the first to get CXL'D and then everyone runs over to the WJ counter!!!

I would like to see WJ connect more of Canada with the US Destinations just across the boarder..Seattle etc.... and within Canada to the smaller cities... Might free up some of the Jets 6, 7 & 800's to better further away US destinations and International ones.^

As for the the regional airline I think it will be under WJ but it's own entity by the sounds of it, some things would bridge between (sharing roles, like the CSA's, Ambas....) however the FA's & Pilots I think would be separate otherwise a whole whack of new training would need to be done for the existing ones to the new types and sizes of AC.... that would make sense?!

Who is the dick now? ;)

"WestJet Airlines Ltd. (WJA-T11.53-0.13-1.11%) is seeking to expand operations under a two-tier structure, gambling on maintaining labour harmony by giving its non-union pilots veto power over the carrier’s bold plans to launch a regional service that will pay reduced wages."

http://www.theglobeandmail.com/globe-investor/westjet-seeks-pilots-blessing-for-proposed-regional-carrier/article2305963/

I was just pointing out the reality of bringing in a second much smaller turboprop into the fleet. Did you think they were going to introduce the aircraft and pay the pilots double what they would earn at Jazz? (and yes I understand that existing pilots will almost certainly be "grandfathered" and not have to take pay cuts, but new hires will come it at much lower salaries)

Either you insinuated that Westjet employees would be getting a pay cut or you misunderstood the fact that new Westjet REGIONAL employees would be paid on a different scale. For example, if a new Westjet Regional city is opened (i.e. Cranbrook) it would be staffed by Westjet Regional employees on the Regional pay scale. Current cities with a mix of WestJet and WestJet Regional would be staffed by Westjet employees - except, I'm assuming, flight crew (FA and pilots) - on the Westjet pay scale. I don't know what would happen if a Westjet city moved to a Westjet Regional city, but in Westjet fashion I'm sure they would do what they always do when a base closes or downsizes and give the employees good options (move to city of choice, grandfather pay, etc.). Obviously my examples are not without errors and more questions but I disagree with your statement that Westjet employees are going to take a pay cut.

Either you insinuated that Westjet employees would be getting a pay cut or you misunderstood the fact that new Westjet REGIONAL employees would be paid on a different scale. For example, if a new Westjet Regional city is opened (i.e. Cranbrook) it would be staffed by Westjet Regional employees on the Regional pay scale. Current cities with a mix of WestJet and WestJet Regional would be staffed by Westjet employees - except, I'm assuming, flight crew (FA and pilots) - on the Westjet pay scale. I don't know what would happen if a Westjet city moved to a Westjet Regional city, but in Westjet fashion I'm sure they would do what they always do when a base closes or downsizes and give the employees good options (move to city of choice, grandfather pay, etc.). Obviously my examples are not without errors and more questions but I disagree with your statement that Westjet employees are going to take a pay cut.

The I'm seeing expressed by WS employees on another forum is that the new entity will take up some of the 'mainline' flying and thus there will be a slowdown of more 737 expansion. Quite a few current FOs will have to wait even longer to upgrade to captain. That's a pay cut for them, unless captains on the new entity will earn more than FOs on the 737. Does it mean a pay cut across the board? No, of course not.

The other concern is that WS is doing just fine with its current model, so why mess with it and try to be more. From an investor and business perspective, I see the point. If you're profitable, why change the model? I do think they're hitting a growth ceiling unless they change up what they do, but will it cost them profits? Only time will tell.

The I'm seeing expressed by WS employees on another forum is that the new entity will take up some of the 'mainline' flying and thus there will be a slowdown of more 737 expansion. Quite a few current FOs will have to wait even longer to upgrade to captain. That's a pay cut for them, unless captains on the new entity will earn more than FOs on the 737. Does it mean a pay cut across the board? No, of course not.

The other concern is that WS is doing just fine with its current model, so why mess with it and try to be more. From an investor and business perspective, I see the point. If you're profitable, why change the model? I do think they're hitting a growth ceiling unless they change up what they do, but will it cost them profits? Only time will tell.

Yea, some 737 flying will be transferred to the Q400. We have 38 new aircraft on order and the ability to return up to 32 between 2012-2018. I understand there are concerns form the pilot group and they have every right to that. They should also get that the Q400's will fly more people from more destinations to the "mainline", which will give those 38 aircraft places to fly. We will continue to grow our codeshares and interlines, which will also give those 737's a place to fly. Growing new cities with a chance to "upgrade" to 737 service will give those 737's a place to fly.

Fast forward 5+ years and what if we're adding widebody aircraft? What will that do for the growth prospects of the Regional and mainline operation? Provide more opportunity. I have no doubt that the pilots are looking at that very scenario and that they'll put rules and provisions in place to make sure things are done right with the Regional airline so that future (potential) growth flows up the same way as it will with the Regional to Mainline.

WestJet is doing just fine with its current model. The thing is we are running out of places to fly domestically and if we stop growing we open the doors to new competitors. In this industry if you don't evolve, you die. Just look at Westjet: 737-200's to a fleet of 737NG's. 97 of them. Launched in Western Canada and now flies all across Canada, the USA, and the Caribbean. Westjet Vacations. No frills to LiveTV and buy onboard products. All of that has been done - much to the chagrin of the naysayers - while still maintaining a 30% cost advantage over its main competition.

If we sit and say "Yup, everything is good" we loose sight of what could happen. What if a new operator swoops in and starts a no frills LCC? What if Porter launches in Western Canada? What if, what if, what if. Just because you're profitable doesn't mean you will be forever. Even Southwest has broken away from the "Southwest model". If WestJet does one thing well it's adapt and evolve. It's worked for years, and I believe that launching a Regional carrier will be the next (profitable) step.

But at the end of the day, you're right - time will tell. I don't know what the future holds but I do know that WestJet does a lot of things right. Engaging its employees is key and the employees are loud and clear with their concerns: we don't want an us vs. them relationship? Our Executive would be suicidal to think ignoring that will be of any benefit to WestJet or WestJet Regional. They have the background and the history to know that the poisonous environments of Air Canada, Jazz, it's former Regionals, and many of the other now-defunct or merged airlines cannot happen at Westjet/Westjet Regional.

http://www.businessweek.com/news/2012-01-20/westjet-sees-1-98-billion-market-for-proposed-regional-unit.html

Jan. 19 (Bloomberg) -- WestJet Airlines Ltd.’s proposed regional unit would tap a $1.98 billion market by using turboprop planes to serve airports with runways too small for the company’s Boeing Co. jets, its finance chief said.

-------------------

Hamzah Mazari, a Credit Suisse analyst in New York, said Bombardier Inc. is the favorite to build turboprops for WestJet because of the unit’s proposed 2013 start date. Montreal-based Bombardier’s French competitor, Avions de Transport Regional, has sold out its production for about three years, he said.

“The only issue hindering a Bombardier order is if WestJet starts a low-cost airline,” Mazari wrote in a note to clients today. “Discussions with Bombardier are likely in advanced stages given an order would have to be placed this year for delivery in 2013 if the airline is approved.”

i like the news that business class might be coming,



Culmone also said WestJet will consider introducing more comfortable “premium” seats “at some point.” No decision has been made, though “the economics of premium seating are fairly enticing,” he said.

I'd like to see more connections from YHZ to the US: Boston (Boston/Portland/Manchester) and/or LGA. Nice routes for a Q400.

There used to be a ferry and a bus connection to Maine. Both are gone, flights are extremely expensive. This has hurt tourism in Nova Scotia.

[QUOTE=PhotoJim;17825672]I'd personally rather that WestJet used smaller regional jets than turboprop planes (E145s or E175s would be great and far more comfortable than most turboprops) but I've heard decent things about the Bombardier Q400s. If this is the aircraft that WestJet has in mind, it might not be too bad.
/QUOTE]

The RJ's are notoriously fuel-inefficient.

http://www.canadianbusiness.com/article/69086--westjet-says-regional-carrier-will-operate-separately-from-main-airline

CALGARY - The new short-haul carrier WestJet Airlines Ltd. is considering would operate separately from the main airline, but help draw more traffic into its network, CEO Gregg Saretsky said Thursday.

"This will be a wholly owned subsidiary with a single fleet of turbo-props, where the operations, the maintenance, the in-flight, the airport and the pilots are part of a separate company, but owned by the same parent," he told an investor conference in New York.

The move would benefit the main network, though, as it would draw more passengers from smaller destinations into major hubs, such as Calgary, he told the conference, sponsored by the Raymond James brokerage.

The Calgary company (TSX:WJA) announced last month it is considering a regional carrier that would give it a presence in smaller markets where competitor Air Canada (TSX:AC.B) is currently the only game in town.

It got a 91% approval from employees.

http://www.cbc.ca/news/business/story/2012/02/08/biz-westjet-regional-airline.html

http://www.calgaryherald.com/business/Bombardier+pitches+planes+WestJet+cost+airline/6262786/story.html


Bombardier Aerospace is flying its Q400 NextGen aircraft into WestJet's backyard today in a bid to sell the Calgary-based carrier on its Canadian-built jets.

The visit by Bombardier follows WestJet's recently announced plans to acquire up to 40 turboprop planes for a new, low-cost regional airline that would compete with Air Canada in the country's smaller markets. Today, WestJet employees will view the aircraft, with about 50 given a demonstration flight.

The list price for the plane is about $30 million US each.

WELLINGTON: About 3,000 people in New Zealand had their travel plans disrupted Sunday when Air New Zealand grounded 11 aircraft after cracks were found around the cockpit windows of one plane.

The aircraft were all ATRs -- propeller-driven 68-seaters operated by Air New Zealand subsidiary Mt Cook Airlines on regional services.

About 60 flights were cancelled after hairline cracks were found in an aircraft during a routine overnight check.

Mount Cook general manager Sarah Williamson said they expected to operate approximately two-thirds of their normal seat capacity on Monday as the ATR fleet was checked and returned to service.

The inspections were being conducted in conjunction with aircraft manufacturer ATR.

"We are making good progress. Of our fleet of 11 aircraft, we expect two aircraft to be operating tomorrow; three others require closer examination and five are well advanced in the inspection process," she said.

Mt Cook has used the ATR-500 aircraft since 1999 and the average age of the current fleet is 10.9 years old

Of the two aircraft types that Westjet is considering, one is the Bombardier Q400 NG and the other is the ATR72-600. The -500 series is an older model.

Of the two aircraft types that Westjet is considering, one is the Bombardier Q400 NG and the other is the ATR72-600. The -500 series is an older model.

And since:

1. WestJet is a Canadian airline, and Bombardier is a Canadian airline manufacturer;
2. Bombardier could deliver Q400s in 2013; ATR could not deliver ATR72-600s until at least 2014;
3. Bombardier has slack capacity so has incentive to cut WestJet a deal;

WestJet is almost certain to adopt the Q400. The only reason ATR is in the conversation is to ensure that Bombardier stays honest in coming up with its best terms for the deal.

And since:

1. WestJet is a Canadian airline, and Bombardier is a Canadian airline manufacturer;
2. Bombardier could deliver Q400s in 2013; ATR could not deliver ATR72-600s until at least 2014;
3. Bombardier has slack capacity so has incentive to cut WestJet a deal;

WestJet is almost certain to adopt the Q400. The only reason ATR is in the conversation is to ensure that Bombardier stays honest in coming up with its best terms for the deal.

There are always lessors with aircraft looking for home. They would probably prefer to send their aircraft to WestJet who always make money than send them to some horrible third world outfit.

I am pretty sure that Westjet will pick the aircraft that best meets their requirements.

Westjet always makes money because it does stuff that makes business sense, and buying an airplane solely because it is made in Canada is not good business sense.

:)

Westjet always makes money because it does stuff that makes business sense, and buying an airplane solely because it is made in Canada is not good business sense.:)

Buying an airplane because you get it one to two years sooner, and it fits your business plan, however, does make a lot of business sense.

Not to mention, there are a lot of operators of Q400s in North America already, making maintenance an easy thing. I am not aware of any ATR operators here - if there are any, the count is not very high.

Not to mention, there are a lot of operators of Q400s in North America already, making maintenance an easy thing. I am not aware of any ATR operators here - if there are any, the count is not very high.

Yeah this is a huge factor if they want to buy new turboprops. ATRs are good planes but they're just not that popular in NA. It's easy to find parts, shops and qualified mechanics for Q400s all over North America.

Buying an airplane because you get it one to two years sooner, and it fits your business plan, however, does make a lot of business sense.

Not to mention, there are a lot of operators of Q400s in North America already, making maintenance an easy thing. I am not aware of any ATR operators here - if there are any, the count is not very high.

American Eagle, and First Air jump to mind as operators of the ATR72. I also seem to remember that the ATR72's operating cost is somewhat lower than a DH8D.

also, aren't Eagle are looking to sell a bunch??

I had expected West Jet to announce its new planes by now?

If I'm not mistaken, the RFP process is still underway.

If I'm not mistaken, the RFP process is still underway.

two RFP are being done...... one for Wide body aircraft also. ;)

i like the news that business class might be coming,


Lets wait and see. They didn't actually say "Business class". Premium seats, per their wording, can just as well mean Y seats with extra pitch.

Lets wait and see. They didn't actually say "Business class". Premium seats, per their wording, can just as well mean Y seats with extra pitch.

more than enough to compete with AC's Business class.^

There are always lessors with aircraft looking for home.
The ATR72-600 only began being delivered to customers in 2011. Not likely to be many in lessors's hands looking for homes right now.

more than enough to compete with AC's Business class.^
why fly, if you seriously believe that a "premium economy" product with somewhat enhanced seat pitch (think E+) would successfully compete directly with AC's Business Class, your hate-on for AC has made you delusional.

At least they can then offer a perk to their best customers. Not sure how much longer AC customers will pick AC with a shot at a J upgrade but also a decent shot at being stranded due to labour issues or otherwise experience sub par service.

Will be interesting to see what strategy WS take with the first regional aircraft... sticking to smaller markets in their home turf in Western Canada (Okanagan, YYJ, Brandon, Peace River, Lethbridge etc), or further expanding from Eastern Canada into business markets that might be marginal with a 737, like Toronto/Montreal/Ottawa-transborder, intra-maritimes etc. Definitely lots of options.

I also wonder if they are giving any thought at all to putting IFE systems into these new aircraft. Not something that's done on regional carriers for the most part at all, but it would definitely differentiate them from their competitors and ensure a consistent product offering.

I also wonder if they are giving any thought at all to putting IFE systems into these new aircraft. Not something that's done on regional carriers for the most part at all, but it would definitely differentiate them from their competitors and ensure a consistent product offering.

There was a news story the other day that stated that WestJet has decided not to put IFE into four 737s they're getting this year. Instead they'll have tablets loaded with video and audio content, which will be provided if a small fee is paid. I think that makes it extremely likely that there will be no IFE on the regional flights. (Since they're competing against ACX which has no IFE either, that won't put them at a disadvantage.)

(Since they're competing against ACX which has no IFE either, that won't put them at a disadvantage.)

The 16 CRJ-705s have IFE and a decent C cabin. (way better than the UA CRJ-700 I rode in yesterday)

The 16 CRJ-705s have IFE and a decent C cabin. (way better than the UA CRJ-700 I rode in yesterday)

True, but although these are flown by QK, they are really on non-regional routes. e.g. here at YQR, we get them on YQR-YOW and from time to time on YQR-YYZ. I assume these are routes where WS would continue to fly a 737. (Turboprops like the Q400 WSX will likely fly are great for shorter routes but show a noticeable disadvantage in flying time on longer routes.)

Will be interesting to see what strategy WS take with the first regional aircraft... sticking to smaller markets in their home turf in Western Canada (Okanagan, YYJ, Brandon, Peace River, Lethbridge etc), or further expanding from Eastern Canada into business markets that might be marginal with a 737, like Toronto/Montreal/Ottawa-transborder, intra-maritimes etc. Definitely lots of options.

The big question is where does WS start first, YYC or YYZ.

If its YYC, then WS will use the turboprop to initiate a YEG-YYC shuttle, on some of the off peak YLW flights and to places like YKA. Also expect YEG-YMM to go 6 daily from current 3. They will find a way to get the aircraft out to YVR and do YVR-YYJ 6-8 times per day. In short don't expect a whole lot of differentiation or new routes that are not all ready flown by AC Express.

If its YYZ, expect Sault, Sudbury, Windsor, North Bay, Thunder Bay, And then a deeper push into Maritimes. About the most interesting play would be to buy their way into Billy Bushop and put Porter out of business.

The bigger question is what will happen with the existing 737 fleet. Possibilities include getting rid of the 600s or returning aircraft comming off lease to lessors as new 737s arrive. In short, WS does not require both a quick build turboprop fleet plus the 737 they have comming in the next 3-5 years, Something has to give. I am using a Greg Saretsky comment (as reason for a turboprop operation) that disclosed WS forsees hitting a wall of diminishing returns with continued expansion of the 737 fleet.

Hopefully they don't change all the YEG flights to props. Increased frequency is nice but I like a jet to YMM and in fact my return flight this Wed YMM-YEG is 100% full. I think they will start Penticton flights from YYC and possibly offer YXE/YQR to YWG service and maybe downgauge some of the Saskatchewan flights to Alberta. Hopefully they can use the jets for more longhaul non-stops from YEG, especially to the west coast US and perhaps ORD.

They have said the aircraft will be based in YYC and YYZ. With an aircraft based at YYC I can imagine a lot of non-YYC routes though, like

YYC-YQR-YWG-YXE-YEG vv or YYC-YLW-YVR-YYJ

They have said the aircraft will be based in YYC and YYZ. With an aircraft based at YYC I can imagine a lot of non-YYC routes though, like

YYC-YQR-YWG-YXE-YEG vv or YYC-YLW-YVR-YYJ

I think WJ will surprise people and go with the ATR72-600.

Bombardier says it can't operate in the mountains. If that were true, why would ATR even show up to the competitition?

The Q400 is a good substitute for the CRJ's flying an average of 375 to 550 miles but not a good substitute for turbo props that fly 250-300 mile average flights every day which is what Westjet wants it for. The Q400 simply guzzles gasoline, even if they fly it slower.

If Westjet tries to fly the Q400 on 600 mile flights, I am pretty sure Air Canada would up guage to a CRJ700/EMB70/EMB90 or even an A319. That is called checkmate and I don't think Westjet likes to play chess to go into a stalemate or to lose!

I know the ATR72 little slower, but on Calgary - Edmonton, it's all of 7 minutes and uses 50% less fuel than the Q400! When fuel is $100 a barrel and your #1 cost, that is a HUGE advantage.

I forgot that First Air operates ATR's in the arctic so that pretty much negates any comments about cold weather performance.

:)

No ATRs in our future:

@WestJet: We are excited to announce that we have selected the @Bombardier_Aero Q400 for our new regional airline. http://t.co/CGBsPmMX

About the most interesting play would be to buy their way into Billy Bushop and put Porter out of business.

I very much doubt this will happen. All of WS's operations are currently out of YYZ so doing YOW/YUL flying out of YTZ would make onward connections for guests very awkward, difficult and time consuming (navigating their way between YYZ and YTZ).