Originally Posted by
tracon
WO was designed to compete with/slow the expansion of RV, Y9 & F8.
WS would have been happy to make most of it's fleet pink if wages could have been kept low enough.
Most airlines within an airline don't last very long. RV being an exception.
Totally agreed.
Except on RV ... it's turned into a weird outlier in the aviation world. AC started it as an 'airline within an airline' - separate business entity, separate identity, separate marketing, its short-lived attempt to offer unique service with their Disney service training, flippant on-board announcements, jaunty hats. Now, they're really nothing more than an aircraft type that's assigned to specific routes with the AC network, all flying under "AC" flight numbers, all sold as AC flights. Mainline A320s and Rouge A320s really just function as different aircraft types now, not different airlines ... aimed at routes where customers either won't notice or won't care that it's a diminished experience. For passengers, the visible difference is that they'll see the word "Rouge" painted underneath "Air Canada" on the outside and they'll experience horrendous seat pitch (and virtually zero 'Preferred' seats with better legroom available) on the inside. For Air Canada they'll enjoy lower labour costs and more seats on those routes. One airline, but with two seating configurations on the same aircraft type.
That's all pretty different than Swoop that really did function as a totally separate, distinct airline in every way. It just happened to be owned by WestJet.
I agree that WS would have preferred to keep Swoop in order to keep the ULCCs in check. This line from their Swoop press release:
“The WestJet Group is confident in the outcome of this negotiated decision and the path forward to integrate Swoop into WestJet’s operations,” continued von Hoensbroech. “We continue our strategy toward providing reliable, affordable travel across the WestJet Group, leveraging the valuable experiences and learnings from the Swoop business model. This integration will enhance our ability to serve a broader spectrum of guests. Instead of only 16 aircraft serving the ultra-low-cost market, each aircraft, in our 180-strong fleet, will offer ultra-affordable travel options through to a premium inflight experience.”
... indicates that they're now going to try to combat the ULCCs with mainline WestJet. Which seems reminiscent of when Air Canada turned Tango from a separate airline to a fare class on mainline AC.
My hunch: Basic fares on mainline WS will become the new ULCC weapon, at least on routes where WS and a ULCC compete. That may mean Basic fares go lower ... which would probably also mean that the features (and restrictions) of Basic undergo a corresponding shift.