Loosing more then itself...

Blastor · Post by **Blastor** » Sat Oct 14, 2006 12:39 pm

Ongoing executive changes at WestJet raise worries

BRENT JANG

TRANSPORTATION REPORTER

WestJet Airlines Ltd. is trying to weather management turnover that is disrupting succession planning, a leading industry analyst said yesterday.

Institutional shareholders are growing increasingly anxious about how Calgary-based WestJet will cope with an ever-changing executive suite, Raymond James Ltd. analyst Ben Cherniavsky said in an interview after issuing a research report on the airline.

Five key WestJet executive vice-presidents are relative newcomers with two years or less experience at the discount carrier. The airline is also hunting for a new chief financial officer.

The bench strength in middle management and supervisory roles also has been eroded, he said. For instance, two recent WestJet departures were Rosanna Imbrogno, vice-president of guest services, and Leslie Roll, who ran the airline's "customer caregiver" program that included responding to in-flight emergencies. They are both between jobs. Ms. Roll won the "2004 WestJetter of the Year" award.

Those two resignations come on top of high-profile departures in the past three years. Thomas (Tim) Morgan, a WestJet co-founder, resigned a year ago. Former CFO Alexander (Sandy) Campbell, who joined WestJet just three months after its creation in 1996, stepped down in June.

"We would have preferred to see a succession plan that featured a more balanced mix of new and old blood," Mr. Cherniavsky said in his report. "Much of the old blood at WestJet is getting thinner."

He said that in some cases, the turnover reflects disagreements over corporate strategy, including the addition of leather seats, satellite TV, a vacation division and international expansion -- all seen by some observers as too far removed from WestJet's low-cost roots.

Despite "growing pains," WestJet is a strong airline that will benefit from softening oil prices, he noted.

Clive Beddoe, WestJet's chairman and chief executive officer, gave up his president's title last month to Sean Durfy, who joined WestJet in late 2004. Mr. Cherniavsky said Mr. Durfy "may well turn out to be one of the shrewdest airline managers around. But from where we sit today, he is generally perceived by investors as yet another unknown variable in the WestJet equation."

In a statement yesterday released in response to the analyst's report, WestJet said it enjoys a foundation of solid management.

"The new executive appointments at WestJet, which were announced last month, have demonstrated that this team of highly qualified specialists will contribute greatly to the future success of this company. They have been promoted from within the company along with Sean Durfy as president, and have worked together as a team for almost two years."

Other WestJet appointments last month included: Bob Cummings as executive vice-president of guest experience and marketing; Hugh Dunleavy as executive vice-president of commercial distribution; and Ken McKenzie as executive vice-president of operations.

"These individuals joining the executive team have a proven track record with WestJet, as well as significant airline expertise and strategic marketing abilities for our future growth," WestJet said.

Best of luck to Roe and Leslie

CanadaEH · Post by **CanadaEH** » Sat Oct 14, 2006 3:22 pm

WestJet Airlines Ltd. is trying to weather management turnover that is disrupting succession planning, a leading industry analyst said yesterday.

Institutional shareholders are growing increasingly anxious about how Calgary-based WestJet will cope with an ever-changing executive suite, Raymond James Ltd. analyst Ben Cherniavsky said in an interview after issuing a research report on the airline.

Five key WestJet executive vice-presidents are relative newcomers with two years or less experience at the discount carrier. The airline is also hunting for a new chief financial officer.

The bench strength in middle management and supervisory roles also has been eroded, he said. For instance, two recent WestJet departures were Rosanna Imbrogno, vice-president of guest services, and Leslie Roll, who ran the airline's "customer caregiver" program that included responding to in-flight emergencies. They are both between jobs. Ms. Roll won the "2004 WestJetter of the Year" award.

Those two resignations come on top of high-profile departures in the past three years. Thomas (Tim) Morgan, a WestJet co-founder, resigned a year ago. Former CFO Alexander (Sandy) Campbell, who joined WestJet just three months after its creation in 1996, stepped down in June.

"We would have preferred to see a succession plan that featured a more balanced mix of new and old blood," Mr. Cherniavsky said in his report. "Much of the old blood at WestJet is getting thinner."

They are all valid points, from out outsiders perspective. I share some of the concerns but the rest is speculation.

He said that in some cases, the turnover reflects disagreements over corporate strategy, including the addition of leather seats, satellite TV, a vacation division and international expansion -- all seen by some observers as too far removed from WestJet's low-cost roots.

What a pile of garbage. Who cares if WS isn't the same airline it was 10 years ago? The industry has changed and the competitive landscape has changed, and so too has our strategy. Westjet has recorded strong passenger growth, yield growth, and capacity growth in its three most recent quarters and we're posting industry leading margins to boot. If someone wants to have a hissy fit at us offering leather seats I say good riddance!!

leftyxl · Post by **leftyxl** » Sat Oct 14, 2006 4:31 pm

Hey Blastor:
Isn't that your mom calling you?

There are a whole pile of leaves for you to rake. The landlord said you need to to a better job this time and to spend less time on that
f&*kin computer. And for the love of gawd stop running all over the lawn with your arms out making airplane noise.

CrimsonSkies · Post by **CrimsonSkies** » Sat Oct 14, 2006 7:06 pm

or maybe its his "village" calling him.....they sure do miss their idiot.

CBGUY · Post by **CBGUY** » Sun Oct 15, 2006 5:31 am

Geez, in the last week first it's reported Westjet has Canada's most admired Corporate culture. Then analysts report Westjet's stock as a "buy" due to sustained profitability and favourable outlook.

And now Brent Jang's and the Globe & Mail's anti-western sentiment continues.

Westjet is making record profit, has an awesome employee culture and is continuously growing. I'd say if we're weathering a storm then they must be in one hell of a blizzard out east.

squawk · Post by **squawk** » Sun Oct 15, 2006 8:06 am

When will the globe and mail put a leash on Brent Jang and his biased reporting. I think Milty must be throughing him some passes. WJ is about to annonce a big Q3 profit. Brent Jang once again starts his propaganda. Better put a negative twist on things.Gotta keep that stock price down. Gotta keep those WJ owners down.

leftyxl · Post by **leftyxl** » Sun Oct 15, 2006 11:55 am

We don't need to worry about Mr. Jang.
He will be his own undoing. We will announce a big profit, people will have no choice but to put their money into WestJet and they will be rewarded handsomely. In the Mean time Brent will have a lot of egg on his face, as his credibility will be in the toilet. I am sure there is a spot for him as a food critic.
Keep up the hard work Westjetters.

P.S. Blastor those leaves aren't gong to rake themselves. Run along and let the adults talk.

invertedattitude · Post by **invertedattitude** » Sun Oct 15, 2006 6:12 pm

WestJet is anything but a LCC anymore.

In fact our nation doesn't have a LCC at this present time.

CanadaEH · Post by **CanadaEH** » Sun Oct 15, 2006 6:45 pm

WestJet is anything but a LCC anymore.

Really? The last time I checked Westjet's costs sure were low. I don't know about you but that consistutes a Low Cost Carrier, no?

invertedattitude · Post by **invertedattitude** » Sun Oct 15, 2006 7:43 pm

CanadaEH wrote:
WestJet is anything but a LCC anymore.
Really? The last time I checked Westjet's costs sure were low. I don't know about you but that consistutes a Low Cost Carrier, no?

Check again, a lot of WestJet's routes the prices are essentially matched with Air Canadas give or take 5 bucks. In some cases Air Canada can be cheaper, especially the Jazz brand (Which I know is AC's LCC)

That being said people who fly WestJet don't mind paying the extra cash when the fare is higher because of the quality of service, and I'm going to be honest myself, I hate flying as a passenger and the TV's make the trip much easier than listening to the din of an airplane cabin for 4 hours.

Ryan Coke2 · Post by **Ryan Coke2** » Sun Oct 15, 2006 8:11 pm

Soooo, because AC decides to match WestJet on price even though it means they lose money, then that means WestJet is no longer low cost?

Insightful logic.

CanadaEH · Post by **CanadaEH** » Mon Oct 16, 2006 5:11 am

Check again, a lot of WestJet's routes the prices are essentially matched with Air Canadas give or take 5 bucks. In some cases Air Canada can be cheaper, especially the Jazz brand (Which I know is AC's LCC)

Maybe you should re-read my last post. When I talk about costs I'm not talking about ticket prices; I'm talking about how much it costs Westjet to provide the service. The fact that Westjet and Air Canada are offering the same ticket price doesn't mean anything about overall costs. Westjet's margins have been at the top of the pack and second to only one carrier - Southwest - which has a fuel hedge keeping it profitable. Air Canada's margin's aren't anywhere near Westjet's. Why? Because it costs Westjet less money.

That being said people who fly WestJet don't mind paying the extra cash when the fare is higher because of the quality of service, and I'm going to be honest myself, I hate flying as a passenger and the TV's make the trip much easier than listening to the din of an airplane cabin for 4 hours.

I remember flying YUL-YVR years ago before we installed LiveTV. I've got a mild case of ADD and I thought that was the longest flight of my life (being hungover from three days of drinking probably didn't help either). The last longhaul flight I took on Westjet was great - I got to watch a PPV movie, the 6:00 news, and a few episodes of Seinfeld. Time sure flies when you're focused on something other, as you said, the cabin noise.

Troubleshot · Post by **Troubleshot** » Mon Oct 16, 2006 5:45 am

you can say that again...I have to fly out west in a month and I never even looked at AC prices because I want the PTV for the long flight out.

Legacy · Post by **Legacy** » Mon Oct 16, 2006 9:33 am

Everyone seems to forget that if it wasn't for WJ, AC would still be charging 1500 to fly across the country. Why would you give your business to a company that would try and rip you off the first chance they get. They are forced to match WJ's prices. I give my loyalty to where it is deserved. Anyone that is a anti-WJer you better hope nothing ever happens to WJ. AC's prices will be right back up through the roof. Lets see how much you will "love" AC then.

Duster · Post by **Duster** » Mon Oct 16, 2006 10:16 am

In 85 my wife and I went YYC/YYJ return booked three months in advance for $800 return each on AC

1n 92 went YYC/YWG on AC 2 week advance booking for ONLY $1200

in 95 wife went YYC/YHZ return on bereavment fare for ONLY $1400

I get really sick and tired of the public and the media whining about the cost of air travel now - if you think its too much take the effing bus or the train.

neophyte · Post by **neophyte** » Mon Oct 16, 2006 11:46 am

Take the train???

To go from YHZ to YVR it will take you 4 days on 3 trains and run you a small fare of $2100!!!! That isn't even a sleeper car!

I will stick with the airlines.

N

invertedattitude · Post by **invertedattitude** » Mon Oct 16, 2006 2:50 pm

Well if both airlines consistantly offer the same prices on routings, regardless of the reasons why, then people aren't going to see WestJet as "Low-Cost" just, the better option.

As was mentioned in another thread however this new kick of trying to attract business travellers, they need to adjust some of the marketing and appearence for this to really work.

invertedattitude · Post by **invertedattitude** » Mon Oct 16, 2006 2:50 pm

neophyte wrote:Take the train???

To go from YHZ to YVR it will take you 4 days on 3 trains and run you a small fare of $2100!!!! That isn't even a sleeper car!

I will stick with the airlines.

N

Agreed, I don't know how VIA stays in business, it is 99% of the time CHEAPER to fly than take the train, and you save days off your travel.

leftyxl · Post by **leftyxl** » Mon Oct 16, 2006 3:03 pm

av8er:
What is your problem?
are you the same guy I met in the dispatch office in yyg in late may june?
I think you are
this means that you are a beginner in this business. did you finally get in in the right seat of that 99? or the right seat of the navajo?

is there a bitter guy sitting in the left seat beside you?
have you gotten discouraged by not getting ahead fast enough?

the tone of your posts is that of a guy who is either a veteran with an axe to grind or a neophyte talking through his hat either way not very becomming.

safe flying

Clint23 · Post by **Clint23** » Mon Oct 16, 2006 3:19 pm

av8rpei wrote:
neophyte wrote:Take the train???

To go from YHZ to YVR it will take you 4 days on 3 trains and run you a small fare of $2100!!!! That isn't even a sleeper car!

I will stick with the airlines.

N
Agreed, I don't know how VIA stays in business, it is 99% of the time CHEAPER to fly than take the train, and you save days off your travel.

the last I heard, VIA gets more money per available seat mile on the railway, from the government, than what WJ's Cost per Available Seat Mile is. Go figure, government at its best.

Cheers