With Westjet’s recent decision to offer flights to Europe, Air Canada will be forced into higher competition across Canada. In a Maclean’s blog by Chris Sorensen, he discusses the new options for Westjet flights, specifically in travelling to Europe and offering different fare classes for customers. Originally with the intention to keep their flights small and stay within under-utilized airports to cut costs and maximize profits, Westjet has now swayed from their business plan to keep up with competitors like Air Canada and beat out other competition at a higher level. With this expansion, Westjet will be able to broaden and develop the company further to increase their brand awareness globally as well as their overall revenue. As they now offer more options for flights, this can only help them gain a larger customer base as it appeals to more customers who are looking for the cheapest flight between competitors. As Air Canada will now experience competition for trips to Europe, Westjet will offer different price fare classes in order to get customers to choose them over their original competition. Although Air Canada has been flying to Europe far before Westjet, the entrance of this new rival into the plane market will allow for more options for consumers and a new Westjet value proposition for existing customers as well as the addition of new customers seeking their new service.
Chris Sorensen: http://www2.macleans.ca/2013/11/15/westjet-bound-for-europe/