WestJet flight reduction

[goleafsgo]

https://globalnews.ca/news/4404161/west ... -capacity/

[goingnowherefast]

WJ reduction, Swoop expansion, who saw this coming...

[HansDietrich]

I was going to say the same thing. It's a little odd that WJ is cutting flights while expanding Swoop. Maybe it's a coincidence. Airlines have losses. It happens, but cutting flights right away seems like a knee jerk reaction. Then again, what do I know about running an airline? (no sarcasm). Not much. Being a pilot doesn't qualify me to accurately comment on these things.

[RILEY]

In addition to the above comments, I believe a major factor in Q2 losses was the potential pilot strike & the effect it had on filling seats while not changing operations.
Seems odd that this isn’t noted when it clearly had an impact.

[Zaibatsu]

Frank Lorenzo would be proud.

[Heliian]

That's how you keep your numbers up for the investors. Westjet is trying to save itself from a looming financial crisis. The root cause being poor management.

[rookiepilot]

How can you lose any money during an absolutely booming North American economy?

They are not the only ones.

Management bears 100% responsibility.

[flyinhigh]

In addition to the above comments, I believe a major factor in Q2 losses was the potential pilot strike & the effect it had on filling seats while not changing operations.
Seems odd that this isn’t noted when it clearly had an impact.

mmmm, it had a small impact, but if you believe that potential labour strife caused that windfall you need to read the financials. Well before the labour action threat, WestJet was already showing signs of a loss. Just look at the year over year numbers.

Now if they didn't start to build a new hanger, start an airline, launch a CPA operation, and pay out a hefty severance to Saretsky, I'd bet the profit would have been quite large. If one labour group caused that much of an issue to them, than anyone with funds in the WJA better pull out as the next couple years are going to be absolutely horrendous with all the other unions coming in.

[RILEY]

In addition to the above comments, I believe a major factor in Q2 losses was the potential pilot strike & the effect it had on filling seats while not changing operations.
Seems odd that this isn’t noted when it clearly had an impact.

mmmm, it had a small impact, but if you believe that potential labour strife caused that windfall you need to read the financials. Well before the labour action threat, WestJet was already showing signs of a loss. Just look at the year over year numbers.

Now if they didn't start to build a new hanger, start an airline, launch a CPA operation, and pay out a hefty severance to Saretsky, I'd bet the profit would have been quite large. If one labour group caused that much of an issue to them, than anyone with funds in the WJA better pull out as the next couple years are going to be absolutely horrendous with all the other unions coming in.

Even if I didn’t note the financials I am
Receptive to the conditions that have led to the bold strategy outlined. I agree , however an operation of this size would have to incorporate some sort of contingency fund into it’s financials to account for a downfall. At the end of the day it’s a cost saving strategy that should hopefully put westjet back on the path to success.

They do say however when you try to do too much... well you can fill in the blanks.

[Bede]

In addition to the above comments, I believe a major factor in Q2 losses was the potential pilot strike & the effect it had on filling seats while not changing operations.
Seems odd that this isn’t noted when it clearly had an impact.

That's what management was saying but RASM was up year over year. Pilot strike was a convenient excuse.

[TheStig]

"Your Honour, as you can see we're in no position to give the pilots a raise as we already loosing money and cutting back our network."

[rookiepilot]

I'm a capitalist -- but at the bottom end of this kind of discussion, I find this sort of thing disgusting. It's wage suppression. It's wrong.
And I disagree with any airline being allowed to shrink mainline to rehire at their ULCC at a lower wage, too.
I'd strike over it.

https://nationalpost.com/pmn/life-pmn/f ... agreements

[Zaibatsu]

"The union strike action has hurt our bottom line, we need to lock out pilots and seek protection from our creditors."

Like I said, Frank Lorenzo would be proud.

[Arnie Pye]

Every time a pilot group is negotiating a contract companies end up in the red. It is as universal as death and taxes. Accounting isn't a science and certain items can either be taken as a loss all in one quarter or spread out over time. Guess what is more convenient to the narrative right now.

I wouldn't be surprised if the hangar went over budget last quarter and the contractors ran into some "trouble" and needed a balloon payment for some unforeseen difficulty. There was probably a payment or two due on the shiny new toys that will start showing up in a few months. Maybe accounting negotiated a slightly discounted total cost for a higher upfront payment.

This tactic goes right back to the Wright brothers. Orville asked for a raise and Wilber told him they couldn't afford one as America was in a time of economic uncertainty and with war coming, they would need a strategic cash reserve to effectively compete with other carriers that would soon be producing and flying aircraft internationally.