WestJet’s plan to launch a regional carrier shows growing maturity of its network

WestJet's decision to push into new, less-dense domestic Canadian markets through the establishment of a new regional subsidiary reflects the 16-year-old carrier's maturity in markets served by its Boeing 737 narrowbodies, but also shows a certain agility WestJet enjoys that allows it to execute new strategies quickly.

The carrier exhibited that agility last year when it bolstered its presence in the highly competitive Canadian eastern triangle (Toronto-Montreal-Ottawa) to build up its base of higher-yield business travellers and intensify competition with Air Canada and Porter Airlines.

But WestJet's decision to add a second fleet type to penetrate markets not viable for its fleet of 737s also reflects the realities of the Canadian commercial air transport market, the finite possibilities of exclusively operating narrowbodies and the genuine opportunities for higher-margin regional flying.