keitherson

Is anyone else thinking they will introduce business class eventually, if not in their 2016 wide-body aircraft? Or start building airport lounges in key markets?

My thinking is that they are looking at Alaska and seeing what happens if you limit yourself to a comfortable profit serving markets with only 737s.

They know many AC premium fliers are upset and are stuck with AC, so there is definitely opportunity.

There's also the looming threat of Southwest as well, who are going to be flying up to Canada eventually.

TheGreatestX

I'd imagine they'll open their own lounges in YYC and YYZ eventually.

I also think they'll join oneworld eventually.

TehSuigi

They're slowly turning into Air Canada, which means at some point we'll all be in here kvetching about how hard it is to get upgraded into business class and how busy the Teal Lounges are.

That said, I think they'll be moving to join an alliance soon, and given how friendly they are with American, it'll be oneworld.

tracon

In no particular order or timeline, join an alliance, bankruptcy.

Or sell off WS Vacations, Encore, FFP and maintenance.
Let core airline restructure in bankruptcy.

Excuse my cynicism!

WR Cage

Regarding business class. While they will have separate front cabin, it will be more to the style of premium rouge on the 763 and will not be full business cabin like what is currently in mainline international airlines.

Symmetre

I would expect the product offering, if and when it happens, to be similar to domestic business class on European carriers like Lufthansa.

OnMedic

+1

sokolov

The problem with the disgruntled AC-fans is that WestJet has a pretty solid load factor. If they want to win those AC-folks over in significant numbers, WestJet would have to invest in quite a few more planes. But that takes time, and then the AC-fans may have settled with whatever they get from AC (or Porter). Also, the question would be if WestJet could fill those extra planes profitably.

WestJet has been fairing extremely well, financially, by growing step by step. The launch of WestJet Encore was a HUGE step for the company, and the rollout of Encore is still going on. Now they are going for Widebodies for trans-ocean-flights.

Adding a siginficant order of B737 on top of that, just to engage AC head on nationally, would increase the financial risk further.

TheGreatestX

They have 83 NG/MAX 737s on order.

sokolov

Yes, thank you for reminding me about that. (not sure if it is exactly 83, but i take your word for it *g*). This order actually deferred (!) delivery of some 737 NG which should have started to arrive next month.

The large MAX order will arrive 2017-2027. these planes will increase fleet size modestly to significantly, depending on what westjet does with currently leased planes.

Do you think that is good enough for the currently angry AC fans?

aerobod

Here is the official 737 fleet plan: http://www.westjet.com/pdf/ourFleet/...-fleetplan.pdf

sokolov

Thank you. The document tells us, that, this year, the 737-fleet is shrinking (-2). Next year, there will be moderate growth (+5, to take us to +3 vs 2013). On the other hand, there is the WestJet Encore fleet, and it is growing rapidly.

So what do you folks think: How much capacity is there for WestJet to win over a substantial number from the disgruntled AC-crowd (without losing a substantial number of passengers to AC and Porter at the same time)?

aerobod

That is only 2 more -700 to be sent to Southwest during the last quarter (the link shows the fleet status as of the end of Sept), the net fleet growth for 2014 was 3 aircraft, with 5 -800 also added to replace the 5 -700 sold to Southwest.

WestJet

One extra piece of info you should consider as you discuss (we've got the popcorn on!) is that the 136-seat aircraft we're selling to Southwest have been replaced with 174-seat 800s, adding capacity to a lot of flights.

~Darren

robsaw

At the end of the previous quarter:
AC load factor: 89.8%
Westjet load factor: 89.3%

Explain the problem with load factor????