For the first time ever, this June, the skies over the Atlantic will be crowded with WestJet Airlines Ltd. planes. The company is just dipping its toes in the European market by only offering flights to Ireland, in order to get a better understanding of the European market without risking too much investment. The decision will increase the competition on Air Canada’s Canada-to-Ireland routes, but full-blown competition with Air Canada would require wider-bodied aircraft.

While WestJet does have potential for international expansion, is this the right financial decision for the company? If the flights run under capacity it will cost WestJet hundreds of thousands of dollars, since costs from operating the plane stay the same but less revenue is being generated from ticket sales. On the other hand, by having airplanes fly to other continents, WestJet’s brand recognition will finally burst outside of the North American bubble.

In agreement with Danielle Yalouz’s comment, “If West Jet is successful, they could create a whole new name for themselves and finally compete with the other international airline companies”, it seems that many are skeptical about WestJet’s return on investment from Europe. The skepticism will be answered come June.

Imbedded Blog: https://blogs.ubc.ca/danielleyallouz/2013/11/17/should-west-jet-travel-overseas/

Source: http://www.theglobeandmail.com/report-on-business/westjet-goes-trans-atlantic-with-new-dublin-flight/article15455464/#dashboard/follows/

Source: http://www2.macleans.ca/wp-content/uploads/2009/04/090422_westjet.jpg