Westjet’s New Way

Since the company’s first flight in 1996, Westjet had been adhered to the single fleet strategy, using only Boeing 737s for their flights. For a long time, this was considered the most cost efficient way to run the company, as it saved on maintenance and staff training. Since the planes were the same, mechanical parts were easy to have on hand, and mechanics pilots were very familiar with the aircraft. However, problems began to arise when Westjet expanded their flight plans out of western Canada. The 737 was usually overbooked on routes such as Calgary-Hawaii and underbooked on routes like Toronto-Ottawa. Prices had to be raised on underbooked flights to make up for lack of passengers, and other customers looked to different companies when they could not get a Westjet flight to popular tourist destinations. In 2012, the company moved away from the single fleet strategy and launched a fleet of smaller Bombardier turbo prop planes for short domestic flights. This way, they could optimize flight capacity, as well as cut down on prices as the smaller planes can land in different airports and sacrifice less landing fees. Westjet is also looking to launch a fleet of larger planes like the Boeing 767 in the near future for long range flights, which means Westjet can expand further into Asia and Europe.

http://www.theglobeandmail.com/globe-investor/westjet-plan-a-new-threat-to-air-canada/article1358800/

http://business.financialpost.com/2013/08/29/westjet-airlines-ltd-pens-deal-to-buy-65-of-boeings-new-737-max-planes/

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