Based on the blog post by MacLean’s Business Blog “WestJet bound for Europe”, I found out that the firm WestJet based in Calgary is going to introduce in the summer of 2014 its flight to Dublin. It will be their first time to cross the Atlantic. This will give their customers the opportunity of finding cheap connecting flights to European countries. The only other Canadian airline to do so is AirCanada, how will this affect their sales?

By AirCanada being the only other airline that flies to Europe, the introduction of another airline flying to Europe will mean that they will have another competitor and therefore their prices will be more competitive. Customers will now have the option of choosing between the two airlines and I believe they will base their decision on who has the lowest prices. Before, AirCanada had the freedom to establish a certain price to their Canada-Europe flights without them being concerned about any other competitive prices.

This decision will help WestJet since it will broaden their customer base. However, their costs will increase, because according to MacLean’s Business Blog, the airlines has few air planes able to fly such a distance, therefore they will have to purchase some other planes for the mission to be successful.

McLeans Business Blog: http://www2.macleans.ca/2013/11/15/westjet-bound-for-europe/

Sources: http://www.cbc.ca/news/canada/calgary/westjet-to-go-transatlantic-with-flights-to-dublin-1.2427850