Loading

WestJet looks to prove in its high stakes gambles with widebody expansion and ULCC ambitions

Canadian airline WestJet is showing no lack of ambition in 2017, revealing plans to launch a new ultra low cost airline, and placing an order for ten new Boeing 787-9 widebodies in the span of two weeks. The moves are triggering market concern about WestJet’s ability to manage such large scale projects simultaneously as its returns are falling below the company’s targeted range.

Following the debut of WestJet’s yet to be named ULCC in early 2018, the company plans to induct the 787 fleet during 2019. It will presumably unveil new long haul markets before the first widebody delivery, which means WestJet will be squarely under way in maturing its new ultra low cost product while embarking on new widebody routes.

WestJet references the successful launch and growth of its regional subsidiary Encore as proof that the company can handle ambitious undertakings. But straddling two major business model changes poses greater risks than simply adding a sub fleet of turboprops for operation on regional routes.

This CAPA Premium Analysis article is 1,744 words.

To access CAPA Premium Analysis you need a CAPA Membership

Your window into the latest insights

CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.

Big picture strategic view

Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.

Global intelligence

The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.

Customise your Alerts

CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.

I'm very impressed by the factual and detailed analysis CAPA is always doing.

- CEO, Airline Member
To learn more, contact us:
Phone: +61 2 9241 3200 | Email: membership@centreforaviation.com