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Old Jun 16, 10, 6:14 pm   #1
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WestJet visibility poor in Eastern Canada

http://www.theglobeandmail.com/globe...rticle1606567/

WestJet Airlines Ltd. (WJA-T12.43-0.11-0.88%) is red-faced about its lagging market share in the lucrative Toronto-Ottawa-Montreal corridor and is vowing to strike back against upstart Porter Airlines Inc. with a new emphasis on the business traveller.

After 14 years of playing the role of underdog against much larger Air Canada, WestJet finds itself in the unusual position of trying to win back market share in Eastern Canada against a small, feisty competitor that has yet to celebrate its fourth birthday.

“I’m almost embarrassed to say that in the Toronto market, we have lower brand awareness than does Porter, a company with 20 small planes versus a company with almost 90 large planes,” WestJet chief executive officer Gregg Saretsky said Wednesday during an investment webcast from New York, organized by Merrill Lynch.

Calgary-based WestJet, founded in 1996, is “very much a Western Canada-focused company and so we have a much stronger presence there. We do suffer in Eastern Canada from a low top-of-mind awareness,” Mr. Saretsky said. He is counting on a new frequent-flier program, bundled fares and a loyalty credit card co-branded with RBC MasterCard to help woo key corporate customers.
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Old Jun 16, 10, 10:42 pm   #2
 
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Originally Posted by tcook052 View Post
http://www.theglobeandmail.com/globe...rticle1606567/

WestJet Airlines Ltd. (WJA-T12.43-0.11-0.88%) is red-faced about its lagging market share in the lucrative Toronto-Ottawa-Montreal corridor and is vowing to strike back against upstart Porter Airlines Inc. with a new emphasis on the business traveller.

After 14 years of playing the role of underdog against much larger Air Canada, WestJet finds itself in the unusual position of trying to win back market share in Eastern Canada against a small, feisty competitor that has yet to celebrate its fourth birthday.

“I’m almost embarrassed to say that in the Toronto market, we have lower brand awareness than does Porter, a company with 20 small planes versus a company with almost 90 large planes,” WestJet chief executive officer Gregg Saretsky said Wednesday during an investment webcast from New York, organized by Merrill Lynch.

Calgary-based WestJet, founded in 1996, is “very much a Western Canada-focused company and so we have a much stronger presence there. We do suffer in Eastern Canada from a low top-of-mind awareness,” Mr. Saretsky said. He is counting on a new frequent-flier program, bundled fares and a loyalty credit card co-branded with RBC MasterCard to help woo key corporate customers.
Porter has high visibility, but has lost $40M being so visible! Jetsgo was very visible too when they had those Fokkers flying ever hour on the hour!

I'd rather be invisible and very profitable than visible and losing money all the time!

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Old Jun 17, 10, 12:49 pm   #3
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Porter has high visibility, but has lost $40M being so visible!
I thought Porter was a private company and as such wasn't required to divulged its earnings or losses so where did this number come from? Just a rumour?
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Old Jun 17, 10, 1:42 pm   #4
 
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It was part of the IPO prospectus.
I don't know the exact number, but it did come out that PD isn't profitable.
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Old Jun 17, 10, 3:08 pm   #5
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Quote:
Originally Posted by HangTen View Post
Porter has high visibility, but has lost $40M being so visible! Jetsgo was very visible too when they had those Fokkers flying ever hour on the hour!

I'd rather be invisible and very profitable than visible and losing money all the time!

I dont think West Jet is making money from Eastern Canada either.. Its all but shut down Hamilton its YYZ flights are a joke... its flights yyz-YUL are $29 and empty. Its trying London Ont and Kitchener but if they cant make hamilton work???
West Jet at some time is going to have to get YYZ to work for them. However its nice to have west jet lose money in YYZ so we get some of our western oil money back
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Old Jun 18, 10, 11:30 am   #6
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I thought Porter was a private company and as such wasn't required to divulged its earnings or losses so where did this number come from? Just a rumour?
You can go to sedar.com and do a search under Porter. All the relevant documents will be shown relating to the aborted IPO.

Interesting strategy for WS. It works for Walmart, but will it work for air travel. If Saretsky is indeed signalling AC about seat sales, perhaps WS is finally moving into its mature company stage, where profits won't be driven solely by rapid expanison.
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