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parnel

WETJET not winning the battle for business travellers

20 posts in this topic

WestJet Airlines Ltd. is mulling over installing a section of “premium economy” seats as part of its strategy to make itself more attractive to business travellers and increase firepower against Air Canada.

Calgary-based WestJet, which has stuck with a single-class cabin since launching in 1996, is exploring ways to improve revenue from corporate customers, as well as passengers transferring from foreign carriers

“There has been a trend in the industry with other low-cost carriers that have created a premium-coach product in the economy cabin,” WestJet chief executive officer Gregg Saretsky said Thursday, after WestJet reported that higher airfares helped lift its second-quarter profit to $25.6-million from $6.8-million.

Premium economy seats offer more legroom than economy. “We’re looking at whether or not that might make sense for WestJet, but today, we’re not prepared to make any announcements in that regard,” Mr. Saretsky said.

WestJet has already rejected the idea of introducing a middle seat that folds down and the armrests form a table. The carrier has also dismissed going head-to-head against Air Canada’s business-class cabin, a section that got hit hard in the recession.

“All the math that we’ve done that looks at the revenue per square foot that we can generate on board the aircraft suggests that a business-class cabin doesn’t help us,” Mr. Saretsky said during a conference call with industry analysts.

He was responding to question from Cormark Securities Inc. analyst David Newman, who wondered whether WestJet might “change the make-up of the cabin at some point to appeal to the business traveller.”

Over the past 18 months, the carrier has unveiled a frequent-flier plan and loyalty credit card program to help lure corporate passengers

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Over the past 18 months, the carrier has unveiled a frequent-flier plan and loyalty credit card program to help lure corporate passengers

These two items are certainly not going to win any corporate clients or many business travellers.

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Yawn.....

Seems like they are doing just fine to me.....and 2Q is typically WJ's worst quarter...

8)

Operating margin, (including interest as an expense)

ALGT: 9.22%

SAVE: 9.16%

UAL: 5.7%

WJA: 4.8%

LUV: 3.8%

JBLU: 3.7%

ALK: 3.4%

LCC: 2.8%

DAL: 2.7%

AVG: 2.2%

AC: -0.2%

PNCL: -.09%

HA: -1.3%

RJET: -3.1%

AMR: -4.8%

Break-even load factor

WJA: 74.4%

PNCL: 77.8%

SAVE: 78.0%

JBLU: 78.5%

UAL: 78.7%

LUV: 79.2%

ALGT: 80.7%

Industry Avg: 81.3%

ALK: 81.4%

LCC: 81.5%

DAL: 81.5%

AC: 83.0%

RJET: 84.3%

HA: 85.0%

AMR: 86.9%

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There is a dentist who comes into my dentist's office every Friday to do extractions. I'm sure he makes a profit. Doesn't make me want to be his customer.

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No premium revenues equals no real growth...you know that but are your usual humble self

Zzzzzzzzz.....still looking for the bones in ice cream, eh Parny?

YoY yield per rpm up 13.4%

YoY RASM up 10.8%.

YoY CASM up 7.8%

System capacity up 9.3%, trailing only Alaska and Hawaiian in North America amongst major airlines

Net profit in Q2 of $284,466 a day, up from Q2 2010's $75,922 a day the previous year

Top 5 in North America for OTP

189,000 more segment guests than the previous year

...all after beefing up triangle flying and being Canada's acknowledged long haul sched passenger leader, with a fleet of 96 B737 jets.

Like shooting fish in a barrel......

8)

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Keep the charade up Rosey... no premium seats no more alliances= a revenue hit

Naturally, 'ol Parny fails to notice that the most consistently profitable airlines in North America and Europe are the ones that aren't part of any alliance. He can't seem to get his head around that.

Seems like WJ code share arrangements are being announced fairly regularly....and the modest, yet ever increasing incremental code share revenues will only add to WJ's already near industry leading bottom line results.

That drives Parny out of his mind, but he still plays with his WJ voodoo doll as vigoriously today as he was 5 years ago when he was predicting WJ's imminent demise.....or was that 10 years ago?

Keep up the good work Parny!

8)

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Well, what do you know, Mark Hill ("I'm not that guy, no really, I'm just an accountant who flies AC when the opportunity arises") is once again talking CASM and RASM in a thread whose subject is not CASM and RASM.

Quelle surprise.

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Keep the charade up Rosey... no premium seats no more alliances= a revenue hit

If by revenue hit you mean revenues not increasing as rapidly as in the early days, sure, but then again what is better, consistent profitability with lower revenue growth or inconsistent profitability with larger revenue growth. The latter leads to repeat trips to restructuring.

I've only flown Westjet 4 segments so from an air passenger perspective really dont' care, but from an investor perspective:

- Westjet = consistent profits, dividends and rising share value trend since the depths of the post-2008 financial crisis

- AC = inconsistent profits, no dividend, and stagnant share value trend

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Well, what do you know, Mark Hill ("I'm not that guy, no really, I'm just an accountant who flies AC when the opportunity arises") is once again talking CASM and RASM in a thread whose subject is not CASM and RASM.

Quelle surprise.

Any discussion of the airline business ultimately boils down to casm and rasm. Alas, our favorite anonymous poster, (after Parny), shows little understanding of anything to do with the business, other than how to acquire FFP's.

The bottom line is the bottom line.

:lol:

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Lots of people here know who I am, and unlike some, have never tried to deny it.

This topic is not a "discussion of the airline business", nor its profit or ranking vs other airlines.

It is to do with a topic of interest to flyers: WS offering or not offering J or premium economy type seats. Full stop.

A one-track record can only go on repeat, however.

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The bottom line is the bottom line.

:lol:

You keep on with the BS about the "bottom line being the bottom line" when you know full well the legacy hits AC takes to its bottom line. If wetjet makes it to year 70 in business, something I have my doubts about, they will have legacy issues.

I am in Europe now and have been for a couple of weeks and have been talking to people about discount/one service level airlines. Best answers I got is that this model is fleeting as the smaller airports are starting to rachet up the landing fees and thus the cost base could change dramtically. Wetjet is number 2 in a large sparsely populated land with the major competitor starting a LC division and having the ground troops to support it....think overhead reductions.

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You're not on the JB here, you know. :lol: Methinks you are reverting to your censor role in your response to Rosedale. :P

:roll:

Would you like every thread you start to be taken off-topic, by say, Parnel talking about the Habs?

All Rosedale ever needs to do is ctrl-C / ctrl-V.

Same deal.

p.s. Post-stalk much?

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Lots of people here know who I am, and unlike some, have never tried to deny it.

This topic is not a "discussion of the airline business", nor its profit or ranking vs other airlines.

It is to do with a topic of interest to flyers: WS offering or not offering J or premium economy type seats. Full stop.

A one-track record can only go on repeat, however.

The topic title and article quoted by the OP directly and indirectly implies that the entire discussion of WS offering premium service is about market-share, revenue, growth and profitability. (i.e. the overall airline business). Your identification of the "topic" is WRONG. Full stop.

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You're not on the JB here, you know. :lol: Methinks you are reverting to your censor role in your response to Rosedale. :P

:roll:

Would you like every thread you start to be taken off-topic, by say, Parnel talking about the Habs?

All Rosedale ever needs to do is ctrl-C / ctrl-V.

Same deal.

p.s. Post-stalk much?

No problem. I believe in freedom of speech! :D:lol:

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Lots of people here know who I am, and unlike some, have never tried to deny it.

This topic is not a "discussion of the airline business", nor its profit or ranking vs other airlines.

It is to do with a topic of interest to flyers: WS offering or not offering J or premium economy type seats. Full stop.

A one-track record can only go on repeat, however.

The topic title and article quoted by the OP directly and indirectly implies that the entire discussion of WS offering premium service is about market-share, revenue, growth and profitability. (i.e. the overall airline business). Your identification of the "topic" is WRONG. Full stop.

Clearly you read some other article to me.

The entire article is about the impact that business class or E+ seating might have on WS' uptake amongst business travellers, and the obvious impacts to the business.

It has nothing to do with:

ALGT: 9.22%

SAVE: 9.16%

UAL: 5.7%

WJA: 4.8%

...which is what Mr. Hill will crank out in any given thread, the classic being "AC launches YUL-DEN".

Simon

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Did you cut and paste your response from a posting 7 years ago?

A WJ competitor starting up a low cost division that's going to do a number on the dominant LCC in the marketplace?

Seems like we've heard that before, except the dominant LCC has almost 100 jets, more than double the size the last time this was tried.

I will say this, though. If I was JME, or Sunwing with long haul aspirations, I'd be concerned.

It's nice you're in Europe on your summer hol's reading news stories on the airline business in the local media.

But that's not where LCC growth is occuring......

BTW, If you are so keen on transparency and enjoy revealing who I am, why do you prefer to hide behind pseudonyms?

8)

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This is a very good point. Least they could do is to give access, even for limited time to lounges. Plaza Premium looks solid. Anyone have experience with them?

At least the travel perks on Westjet Mastercard World Elite credit card ave improved over the years. Looks like there are serious advantages, regardless of business or not.

250 WestJet welcome bonus
Earn WestJet dollars on purchases
Annual round trip companion voucher for anywhere they fly, plus your first checked bag is free on all WestJet flights

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