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Who's Who in Low Cost Aviation
| Carrier: | Westjet
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| Headquarters: | Canada
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| Founded: | 1996
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| Destinations: | 38
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| Bases: | Calgary, Vancouver, Toronto, Edmonton
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| Owners: | Public
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| Listed: | Yes
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| Online Booking: | Yes
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| Website: | www.westjet.com
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| Fleet | | Overview - Westjet WestJet - Canadian LCC shines
Canada’s new world carrier, WestJet, is among the stars of the LCC industry. From its humble 1996 beginnings operating a fleet of three B737-200s to connect home base Calgary with four cities, it has grown to be one of North Americas most profitable airlines, serving 38 destinations with 68 B737-NGs.
The company’s successful adherence to low cost principles – greatly aided by its non-unionised work force – allows it to profitably compete with any carrier on price. This ability has been the key to WestJets continuous move east and its success in competing with Air Canada, which had previously been able to crush any interlopers into its core territory, i.e., Canada.
Based on WestJet’s current growth strategy, the LCC could control as much as half of the domestic Canadian market by 2013. The carrier currently holds approximately 35% market share compared to Air Canada's 65%, and is currently achieving market share gains of 2-3 ppts p/a. WestJet expects a market share of 40-50% within five years, as capacity will be boosted with the arrival of 50 B737NGs in the next five years.
WestJet also hopes to double its share of the transborder US market by 2013 to 15% by expanding to US business destinations. It also plans to increase its presence in the Canada-Mexico and Canada-Caribbean markets from 1% currently to 10-20% over the next five years. This expansion in the transborder maket has occurred as the airline has taken advantage of the liberal US-Canada bilateral to launch services to ten US cities, and Caribbean destinations, including St Lucia, Montego Bay, Puerto Plata, Punta Cana, Mazatlan, Cabo San Lucas and Kona.
Now in its 11th year of operation, the profitable airline has carried over 9.4 million passengers.
Outlook bright for northern LCC prodigy
With its laser focus on costs and its success flying into the US, this carrier, which has recently added LiveTV to its offerings as its stage lengths have grown, has a bright future.
WestJet’s expansion plans include operating to over 60 destinations by 2013, with a fleet of 111 B737NGs.
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