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WestJet refrains from full assault on Air Canada with Encore’s Q400 launch

Analysis

Canada's WestJet appears to be taking a predictably measured approach with the debut of its new regional subsidiary Encore in Jun-2013, keeping the majority of the new carrier's operations close to its Calgary base until its calculus for the 78-seat Bombardier Q400 is proven out. As expected, WestJet is heightening competition with Air Canada in some of the small markets where it plans to deploy Encore's turboprops, but is also introducing new points from some of those airports.

WestJet is also not ignoring mainline expansion, reflected in the launch during 2H2013 of two new US markets - the Dallas hub of partner American Airlines and Myrtle Beach, South Carolina.

WestJet has moved quickly in its development of Encore, disclosing plans to expand into the regional market in early 2012. After unveiling its desire to create a new carrier WestJet's management worked to attain employee approval for the establishment of Encore, ordered 20 78-seat Bombardier Q400s and determined that Calgary (WestJet's headquarters location) would serve as the initial base for the new carrier.

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