User-pay items may include satellite radio
Discount carrier WestJet Airlines Ltd. is seeking to add frills by bundling user-pay services aboard upgraded planes while still guarding its traditional strength in attracting budget travellers.
The Calgary-based airline, on the eve of celebrating its 10th anniversary next February, is considering a range of options to lure passengers willing to pay extra for everything from movies to Internet access to satellite radio.
Donald Bell, WestJet executive vice-president of customer service, said the strategy is designed to expand services for business and gadget-minded travellers without sacrificing the airline's appeal to budget-conscious consumers.
"This would be value-added stuff. You could buy different things," Mr. Bell said in an interview. "As we become a bigger and bigger player in Canada, we have to appeal to more and more people -- give them choices.
The carrier is looking at the feasibility of installing satellite radio channels on WestJet's fleet, as well as equipping planes to handle cellphones, text messaging, BlackBerrys and Internet access for laptops.
"Those are all future things that we're looking at in the next couple of years," he said. "It's something we're keeping a close eye on to see if it's technologically and economically viable."
In introducing new offerings, WestJet hopes to boost its revenue by charging for frills. One idea up for discussion is to bundle various services for a single fee, so that a passenger pays the basic ticket price but has the option of upgrading in advance to receive a sandwich, drink, higher-quality headset and movie. Advance seat selection is free for now, but could become a user-pay perk.
Another possibility for upgrades at some airports could be admission to common-use lounges.
A $2.7-million computer reservation system would help keep track of passengers ordering bundled services. WestJet announced the new computer installation in February, after technical glitches wreaked havoc on customer bookings last fall. When the installation is completed in November, the new booking system will also allow WestJet to join airline partnerships, said Mr. Bell, who declined to discuss potential alliances.
Hong Kong-based Cathay Pacific Airways Ltd. said last fall that it held preliminary talks with WestJet about a possible strategic alliance, but cautioned that it could take until late 2005 to implement.
The goal is to connect to Cathay seamlessly on one WestJet booking, with bags transferred, too.
WestJet's free LiveTV has been popular with passengers since being introduced in 39 Boeing 737 aircraft this past spring, Mr. Bell said.
He said initial "amplifier" problems with 26 antennas have been largely overcome by installing new components. There are now plans to enhance the programming offered on the LiveTV screens, which are built into the back of each leather seat. Bell ExpressVu LP supplies the live satellite feed.
Besides continuing with 24 LiveTV channels, WestJet is considering launching four channels with "first-run" movies made available to airlines after hitting theatres but before they are released on DVDs. WestJet may charge $5 to each passenger ordering a movie on a personal LiveTV screen.
Other new channels could feature prerecorded Treehouse programming for children and a WestJet promotional broadcast, with content originating from video servers aboard planes.
"We had a few issues crop up, but it's way better now," Mr. Bell said. "When you're moving a satellite receiver-antenna through the air at 800 kilometres an hour, and it's receiving 24 simultaneous channels from a satellite in space, there's a lot of technology involved."
David Newman, an analyst with National Bank Financial Inc., said business travellers are irked at having to pay "exorbitant rates to legacy airlines," so that leaves an opening for WestJet to outmanoeuvre rivals, notably Air Canada.
"Low-cost carriers, particularly WestJet, may be viewed more favourably by the corporate travel market, especially with improving service levels and perks," Mr. Newman said in a recent report.
Starting this fall, WestJet will offer higher-quality headsets for $2 or $3 apiece. Last month, WestJet began charging $1 for each basic headset.
"We encourage people to bring their own headset since we have a jack that's the same as your iPod, but if you don't have a headset, we'll sell you one," said Mr. Bell, who added that WestJet headsets left aboard planes get discarded in the garbage. "We hate throwing them out. Headsets are there for you to take and bring on your next flight."
WestJet aims to add extras -- for a price
Moderators: sky's the limit, sepia, Sulako, lilfssister, North Shore, I WAS Birddog
For @#$! sakes,
The only thing the business traveller wants is to go past the regular pax at check-in and get on and off before everyone else.
They want their luggage to be there waiting for them so they can grab it and run...
Jesus, they're paying some clown $XXX,000 a year to generate revenues...
$5, to only need to be 20 minutes early for the flight,
$5, to board and get off first.
$5, to have your luggage waiting for you.
Only problem that will occur is when everyone is willing to pay the $5.. =(
The only thing the business traveller wants is to go past the regular pax at check-in and get on and off before everyone else.
They want their luggage to be there waiting for them so they can grab it and run...
Jesus, they're paying some clown $XXX,000 a year to generate revenues...
$5, to only need to be 20 minutes early for the flight,
$5, to board and get off first.
$5, to have your luggage waiting for you.
Only problem that will occur is when everyone is willing to pay the $5.. =(
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Canus Chinookus
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