Paging Captain Norma Rae. Pilots might strike May 19.
May 26, 2018, 7:23 pm
#136
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Join Date: Jul 2001
Location: YYC
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The business plan for Swoop is a return to fundamentals when WestJet first started. Basically when WS first started the staff was brand new, the back office systems were cheap and easy to operate, and the organization was small enough there was no need for large number of middle managers or complex processes.
The second part of the business plan is to allow WS to alter their product and pricing to ULCC standards while not affecting the core market. Eg charge for carry on, use it or lose it ticketing, no connections.
Jun 11, 2018, 11:11 am
#137
Join Date: Dec 2002
Posts: 8,009
WestJet, ALPA agree to federal mediation, late June settlement | Labor content from ATWOnline
Following personal intervention by the Canadian government’s labor minister, WestJet management and its pilots, as represented by the Air Line Pilots Association (ALPA), agreed May 25 to federal mediation of the two sides’ heated contract negotiations, averting pilot strike action.
Following personal intervention by the Canadian government’s labor minister, WestJet management and its pilots, as represented by the Air Line Pilots Association (ALPA), agreed May 25 to federal mediation of the two sides’ heated contract negotiations, averting pilot strike action.
Jun 13, 2018, 3:28 pm
#138
Join Date: Apr 2009
Location: YYC / random hotel in YYZ
Programs: Back of the bus
Posts: 922
WestJet has to be careful about having Business Plans that are solely designed for uncompetitive reasons. The Competition Beaureau kept good notes during the tribunals where WestJet accused AC of doing the same when Tango and Zip were created.
The business plan for Swoop is a return to fundamentals when WestJet first started. Basically when WS first started the staff was brand new, the back office systems were cheap and easy to operate, and the organization was small enough there was no need for large number of middle managers or complex processes.
The second part of the business plan is to allow WS to alter their product and pricing to ULCC standards while not affecting the core market. Eg charge for carry on, use it or lose it ticketing, no connections.
Now WJ is a full fledged domestic carrier, transitioning into one that goes TATL and TPAC with a ballooning and close to AC mainline cost base as it expands. Swoop was simply (in m opinion) Clive's attempt at union busting at all costs and trying to stop other market entrants packaged to look like a Rouge 2.0 minus the cheesy hats and uniforms.
Can't be a mainline carrier, an LC, and a ULCC at the same time under your own terms without pissing off one segment of the workforce, especially when they're arguing they are below industry standard. Unfortunately this was a pissing match between a big baby who was willing to shutdown the company at all costs / a board with no spine, and a pilots union ready to fight.
Will be interesting to see how the new contract ends up. All the talk over at the avcanada boards is all over the place.
Jun 13, 2018, 11:37 pm
#139
Join Date: Mar 2010
Location: Calgary
Posts: 1,444
Yes, and with no unions things were fine. Costs were low, jets were added as needed, WJ was able to be nimble and then only add routes as it made sense. Travel on WJ in the 90's was alot of stops, but they made money. Send planes full from Vancouver to Winnipeg, with 3 stops on the way for the same or less than AC and build up a loyal clientele.
Now WJ is a full fledged domestic carrier, transitioning into one that goes TATL and TPAC with a ballooning and close to AC mainline cost base as it expands. Swoop was simply (in m opinion) Clive's attempt at union busting at all costs and trying to stop other market entrants packaged to look like a Rouge 2.0 minus the cheesy hats and uniforms.
Can't be a mainline carrier, an LC, and a ULCC at the same time under your own terms without pissing off one segment of the workforce, especially when they're arguing they are below industry standard. Unfortunately this was a pissing match between a big baby who was willing to shutdown the company at all costs / a board with no spine, and a pilots union ready to fight.
Will be interesting to see how the new contract ends up. All the talk over at the avcanada boards is all over the place.
Now WJ is a full fledged domestic carrier, transitioning into one that goes TATL and TPAC with a ballooning and close to AC mainline cost base as it expands. Swoop was simply (in m opinion) Clive's attempt at union busting at all costs and trying to stop other market entrants packaged to look like a Rouge 2.0 minus the cheesy hats and uniforms.
Can't be a mainline carrier, an LC, and a ULCC at the same time under your own terms without pissing off one segment of the workforce, especially when they're arguing they are below industry standard. Unfortunately this was a pissing match between a big baby who was willing to shutdown the company at all costs / a board with no spine, and a pilots union ready to fight.
Will be interesting to see how the new contract ends up. All the talk over at the avcanada boards is all over the place.
Swoop will not connect to mainline, mainline has to use the distribution hubs, so flying can’t just be swapped between the two. Swoop has been implemented with a reservation and departure control system that won’t take partner traffic to keep costs as low as possible. Bottom line, they have two different purposes and can’t be interchanged, not a good plan if you want to substitute Swoop for WestJet flying, as that has never been the aim with the exception of a few point to point routes that are not economic for WestJet to fly anymore. The business oriented strategy where WestJet is realigning is also totally at odds with using Swoop to “union bust”.
Avcanada is quite a biased source of info lately, due to a number of pro-union members who seem to have adopted it as a public complaints forum, there is a lot more information out there that can bring a more balanced view.
Change is hard, many employees struggle with it, time will tell if they will become happier in the future, but their happiness is still higher than average compared with most companies (even allowing for pilot discord), this is speaking from my recent employment before retirement.
PS, bragging rights to anyone who can tell me what is wrong with a photo in the Investor Day presentation that has been photoshopped, clue is Delta.
Last edited by aerobod; Jun 13, 2018 at 11:42 pm
Jun 14, 2018, 9:36 am
#140
Join Date: Apr 2009
Location: YYC / random hotel in YYZ
Programs: Back of the bus
Posts: 922
Keep in mind investors presentations will never hint to you that it's aimed at union busting, but you can read between the lines. If it wasn't aimed at Union busting, Clive would have offered WJ pilots the opportunity to fly the planes right from the start...he knew it was a negotiating ploy and he could use it to wring concessions elsewhere.
1) WJ wants to put a ULCC in place, with ULCC cost bases back like how WJ was started back in the 90's. Simple systems, simple back office, no need for middle management, etc. Not easy to do with a large company that's operating more and more like legacy carriers every day.
2) Clive has always been a his way or the highway guy. He runs a tight ship (to his credit) and would happily lockout the union if it served his purpose. His view is it's a priviledge to work for him and the pilots should be happy they have jobs (even if they are below market). Similar to Walmart (but we're the best, why don't you want to work for us?)
3) Yes, AVCan is tainted, but there are a few from the other side who shed light at what's going on. Sounds like similar struggles that AC has had. No surprise. Want to be a carrier with legacy reach? You're going to have to deal with that eventually.
Swoop ultimately was an attempt to ring more profit out of routes that ran tight (or at a loss) with a lower cost base, while keeping other entrants (ie Flair, New Leaf, etc) out as long as possible. We have big barriers to entry and the more the big two can control the market, the less competition.
1) WJ wants to put a ULCC in place, with ULCC cost bases back like how WJ was started back in the 90's. Simple systems, simple back office, no need for middle management, etc. Not easy to do with a large company that's operating more and more like legacy carriers every day.
2) Clive has always been a his way or the highway guy. He runs a tight ship (to his credit) and would happily lockout the union if it served his purpose. His view is it's a priviledge to work for him and the pilots should be happy they have jobs (even if they are below market). Similar to Walmart (but we're the best, why don't you want to work for us?)
3) Yes, AVCan is tainted, but there are a few from the other side who shed light at what's going on. Sounds like similar struggles that AC has had. No surprise. Want to be a carrier with legacy reach? You're going to have to deal with that eventually.
Swoop ultimately was an attempt to ring more profit out of routes that ran tight (or at a loss) with a lower cost base, while keeping other entrants (ie Flair, New Leaf, etc) out as long as possible. We have big barriers to entry and the more the big two can control the market, the less competition.
Jun 14, 2018, 10:28 am
#141
Join Date: Mar 2010
Location: Calgary
Posts: 1,444
Swoop ultimately was an attempt to ring more profit out of routes that ran tight (or at a loss) with a lower cost base, while keeping other entrants (ie Flair, New Leaf, etc) out as long as possible. We have big barriers to entry and the more the big two can control the market, the less competition.
Although the presentation I posted is aimed at investors, it is no different than what employees have been shown in town halls and is the core of why WestJet has to change, Swoop needs to exist and the driving forward of the two different product strategies, as Mainline doesn’t have the cost structure to meet the needs of the bottom end of the market. From the enthusiasm in the several town halls I attended most employees are totally onboard with this strategy, but a vocal minority of people who are change-challenged do not agree at all, this is where the morale problem exists.
Jun 14, 2018, 10:49 pm
#143
Join Date: Mar 2010
Location: Calgary
Posts: 1,444