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WestJet continues its hybrid evolution, watching costs as it weighs a potential widebody operation

Analysis

Canada's second largest carrier WestJet is adopting the strategy of many low-cost carriers worldwide through the creation of a hybrid model to bolster its share of the lucrative travel market. While in the short-term all the carrier's efforts are focused on the launch of its new regional carrier Encore in 2H2013, WestJet is examining several options beyond its five year plan, including the possible deployment of widebody aircraft.

If WestJet opts to seriously consider deploying aircraft into long-haul markets beyond its current transborder offerings, the carrier will unleash competition against rival Air Canada in one of its last protected business segments.

WestJet joins many low-cost carriers including its North American counterpart JetBlue that are transforming their business models from a pure low-cost structure to a hybrid model in order to expand their passenger base to capture lucrative corporate travellers.

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