WestJet Announcement.

[goingmissed]

Could also be that they realise that half of Encore's pilots are getting ready to leave, and if they don't bring more capacity to yyc they might lose their regional presence there with limited ability to back up attrition with mainline might.

I doubt it. I can't imagine anyone in management being so clueless that they don't realize that the loss of pilots is due to lack of pay, lack of career progression, and loss of affordable commuting. Management may not be in my good books right now, but I am confident that they have an understanding of why people are upset and are trying to juggle the pilots with the business.

[flyinhigh]

Could also be that they realise that half of Encore's pilots are getting ready to leave, and if they don't bring more capacity to yyc they might lose their regional presence there with limited ability to back up attrition with mainline might.

Simple question. Are Encore planes parked due to pilot staffing on a daily basis? I'm not saying a cancelled flight here and there, I mean is a plane parked, not flying due to pilots leaving.

If not, then there is ZERO issue from a management perspective. Are they aware of the ongoings? you can bet your arse they are but there is zero issues when the planes are in the air, whether from no shortage, or pilots accepting OT, etc.

[Airbrake]

Could also be that they realise that half of Encore's pilots are getting ready to leave, and if they don't bring more capacity to yyc they might lose their regional presence there with limited ability to back up attrition with mainline might.

Simple question. Are Encore planes parked due to pilot staffing on a daily basis? I'm not saying a cancelled flight here and there, I mean is a plane parked, not flying due to pilots leaving.

If not, then there is ZERO issue from a management perspective. Are they aware of the ongoings? you can bet your arse they are but there is zero issues when the planes are in the air, whether from no shortage, or pilots accepting OT, etc.

Yes, 10 Q’s are not flying due to lack of crew. There are 37 operating of the 47.

[rudder]

Sort of looks like WS is running away from the impending fight with Porter out east as the latter gets jets. Let big red take them on head to head. Let Sunwing do battle with Transat (and profit from both), and let Swoop compete with Flair and Lynx. It feels like Westjet had crossed a bridge too far and finally realised it.

Could also be that they realise that half of Encore's pilots are getting ready to leave, and if they don't bring more capacity to yyc they might lose their regional presence there with limited ability to back up attrition with mainline might.

There is an axiom in the industry that if you are not growing, then you are dying.

Without revenue growth, unit cost increases as a function of time and employee tenure.

Will be interesting to see where this plan takes WJ. At first glance, it appears to be about getting out costs and eliminating operations that are not breaking even.

[Canadaflyer46]

Could also be that they realise that half of Encore's pilots are getting ready to leave, and if they don't bring more capacity to yyc they might lose their regional presence there with limited ability to back up attrition with mainline might.

I doubt it. I can't imagine anyone in management being so clueless that they don't realize that the loss of pilots is due to lack of pay, lack of career progression, and loss of affordable commuting. Management may not be in my good books right now, but I am confident that they have an understanding of why people are upset and are trying to juggle the pilots with the business.

Management knows full well why Encore pilots are leaving. They wouldn't even have to increase the pay to get most guys to stay, just offer YOS finally like every regional in the US now offers. Unfortunately with the current management they'd rather lose all the pilots and shut the company down than be willing to offer any incentives before the next CA.

[goingmissed]

I don't want to have to work two jobs to be able to pay rent and eat. There are far too many of us who are working every day, spending our "off days" from flying doing a second job.

[Canadaflyer46]

I don't want to have to work two jobs to be able to pay rent and eat. There are far too many of us who are working every day, spending our "off days" from flying doing a second job.

That was the norm south of the border for regional FOs until the 1500 hour rule was implemented. Unfortunately only one way to get that

[fish4life]

I don't want to have to work two jobs to be able to pay rent and eat. There are far too many of us who are working every day, spending our "off days" from flying doing a second job.

That was the norm south of the border for regional FOs until the 1500 hour rule was implemented. Unfortunately only one way to get that

Agreed sadly it’s going to cost the lives of 70+ people until TC realized a 1500 cpt and 250 hour FO shouldn’t be allowed in a 705 machine

[newlygrounded]

I don't want to have to work two jobs to be able to pay rent and eat. There are far too many of us who are working every day, spending our "off days" from flying doing a second job.

That was the norm south of the border for regional FOs until the 1500 hour rule was implemented. Unfortunately only one way to get that

Both colgan guys had over 1500 hours? don't see your point

[goingmissed]

Both colgan guys had over 1500 hours? don't see your point

Both pilots at Colgan were suffering from fatigue that could have been solved by paying them what they're worth so that they could afford a hotel room with a bed.

While the Colgan Air crash was the catalyst in the 1500 hour rule, the rule itself would likely not have changed the outcome of the event. The point that was made by CanadaFlyer is that our society is unable to make positive changes until it takes hundreds of lives or not doing so would cost a few more dollars.

[rudder]

Sort of looks like WS is running away from the impending fight with Porter out east as the latter gets jets. Let big red take them on head to head. Let Sunwing do battle with Transat (and profit from both), and let Swoop compete with Flair and Lynx. It feels like Westjet had crossed a bridge too far and finally realised it.

Could also be that they realise that half of Encore's pilots are getting ready to leave, and if they don't bring more capacity to yyc they might lose their regional presence there with limited ability to back up attrition with mainline might.

There is an axiom in the industry that if you are not growing, then you are dying.

Without revenue growth, unit cost increases as a function of time and employee tenure.

Will be interesting to see where this plan takes WJ. At first glance, it appears to be about getting out costs and eliminating operations that are not breaking even.

Looks like there is a plan:


The WestJet Group’s strategic path forward for our guests, employees and the communities we serve

The WestJet Group yesterday brought together leaders, representing all parts of the operations and business, to hear directly from Chief Executive Officer (CEO), Alexis von Hoensbroech, as he shared plans for growth into the COVID recovery, and the airline’s commitment to embracing its cost-conscious roots in service of affordable air travel for Canadians.

“The immediate priority is to ensure we are ready for the high volume of pent-up travel demand this summer,” said Alexis von Hoensbroech, CEO of the WestJet Group. “Equally important is charting a path that continues to grow WestJet as the friendly, reliable and affordable airline our guests know and love.”

Since arriving on February 15, 2022, von Hoensbroech spent his first 100 days getting to know the airline’s people, guests and network. Joining at a critical inflection point as the WestJet Group emerges from the pandemic, the executive team around von Hoensbroech and WestJet’s board of directors undertook a strategic review to determine the best course for sustained future success for the airline and its people.

“WestJet is strong foundationally, having weathered the pandemic as perhaps the world’s only airline of scale that did not accept sector-specific government funding or issue any new equity or debt. We’re now at an exciting and pivotal moment for the industry and our airline,” continued von Hoensbroech. “As we emerge from the pandemic, the world around us is changing with rising inflation and instability from the war in Ukraine. We are also facing industry-specific challenges, including spiking oil prices and staffing shortages at airports.”

The WestJet Group’s strategic growth plans

Through the strategic review, the airline looked to historical strengths to secure future success, honing in on a focused network and strategy; an unrelenting cost commitment; and a consistent, superior guest experience.

To build upon the reasons why guests choose WestJet and drive future growth, WestJet will renew its focus on:

Growth as a low-cost carrier that is friendly, reliable and modern
Shifting resources to significantly grow its presence and network in the West, fostering its undisputed status as the home-team carrier of Western Canada offering more direct, non-stop flights to communities
Investing further in leisure and sun flying as a priority across Canada, including through the acquisition of Sunwing, following regulatory approval
Investing in technology and radical digitalization to improve guest experience and simplify internal processes to ensure meaningful and engaging jobs for its people
Redoubling efforts to maintain its successful and highly productive low-cost structure and culture, to ensure relentless competitiveness and affordability for guests
To match its commercial strategies, the airline will centre its existing widebody 787 Dreamliner fleet around Western Canada and, for the time being, pause further investment into incremental Dreamliners to focus instead on additional narrowbody growth. In addition to the more than 30 Boeing 737 MAX aircraft that the airline will receive over the coming years, including 15 in 2022 alone, WestJet is working towards a substantial additional narrow body order.

The airline will maintain its current premium offerings, with a focus on strengthening its premium leisure segment and corporate premium in the West. The focus of WestJet’s regional fleet of De Haviland Q400 aircraft will be shifted and rightsized to focus on Western Canada, removing complexity from operations, and prioritizing the airline’s commitment to enhance Western Canada’s connectivity.

Network changes are complex and will be phased in over an extended period of time. The airline is committed to engaging with communities and stakeholders in these plans. Guests can anticipate seeing changes gradually implemented by summer 2023.

“We will deploy our aircraft where they can be of greatest service to Canadians,” explained von Hoensbroech. “While we will be investing the majority of our fleet in the West, as a national airline we will maintain a significant presence in the Eastern provinces, primarily through direct connections to our Western cities, while significantly enhancing our network to leisure and sun destinations, including through our acquisition of Sunwing.”

WestJet will also continue to significantly scale other areas of the business that remain critical, namely WestJet Cargo, Loyalty, WestJet Vacations and Swoop, it’s ultra-low-cost carrier. The acquisition of Sunwing will facilitate the scaling of WestJet Vacations and Swoop.

“Swoop is an important part of our strategy with a tremendous cost structure, and we still have plenty of room to grow and bring lower fares to our guests,” added von Hoensbroech. “WestJet and Swoop will run more complementary networks and collectively meet the demand of leisure travellers.”

Strengthening the airline’s leadership team, the WestJet Group announced the addition of Bob Cummings as President of Swoop on April 13, along with Kirsten de Bruijn, Executive Vice-President, Cargo on April 5 and Karl Schuster, Executive Vice-President and Chief Loyalty Officer late last year.

“WestJet’s low-cost roots have been the foundation of the historical success of our company. As we realize our ambitious growth plans, we will bring more air service to Canadian communities and connect more people to what matters most, through friendly and affordable air travel,” concluded von Hoensbroech.

Strengthening the airline’s senior leadership team

To support the fulfillment of its strategic direction, the airline has further strengthened its senior leadership team with a number of new appointments:

Angela Avery, Group EVP and Chief People, Corporate & Sustainability Officer

Angela Avery joined WestJet in February 2020 as General Counsel and Corporate Secretary. In her newly expanded role, she brings together complementary teams including People and Culture, Communications, Legal, Government, Regulatory, Community Investment, and Environment, Social and Governance (ESG). Avery will be leading an inclusive, engaged and purpose-led team focused on supporting all aspects of WestJet’s business and meeting the needs of the communities that the WestJet Group serves.

With more than 25 years of legal and commercial leadership experience across multiple industries, Avery has led transactions totalling more than $25 billion and has an extensive regulatory and compliance background. Avery joined WestJet from Athabasca Oil Corporation where she was responsible for legal, business development, human resources as well as marketing and transportation. Her international experience includes an appointment to litigate war reparations at the United Nations. She is called to the bar in New York and Alberta and received a Queen’s Counsel designation in 2022.

Christian Novosel, Chief Digital Officer

Christian Novosel will join the executive leadership team in August. Responsible for Digital Technology Delivery, Data Analytics and Business Intelligence and the Group Project Management Office, he will be integral to the ongoing development and delivery of WestJet’s enterprise-wide digital transformation for both its guests and people.

Novosel joins WestJet with almost 20 years of aviation experience most recently serving as Head of Corporate Development and Chief Data Officer for Austrian Airlines. In this role, he established the airline’s centralized digital team and led several strategic and innovating processes to implement digital solutions across the organization.

Natalie Farand, Chief Experience Officer

Natalie Farand will take on the newly created role of Chief Experience Officer (CXO). Led by Farand, the CXO team will define WestJet’s value proposition and enable WestJet to successfully engage stakeholders to activate a guest-centric vision and strategy.

In her eight years with WestJet, and most recently as WestJet’s Vice-President Guest Experience, Farand has led many digital functions from eCommerce, User Experience, Digital Marketing and Analytics. Farand introduced the User Experience discipline within WestJet, putting focus on the voice of the guest, and was responsible for the Digital Channel and Product strategic roadmaps and operations at WestJet, including the website, mobile app, chatbot, inflight entertainment system and eCommerce platforms.

Jeff Hagen, Vice-President Strategy and Fleet

Jeff Hagen, already part of the WestJet leadership team, will take on a new role as Vice-President, Strategy and Fleet. Responsible for leading WestJet’s strategic transformation to a low-cost carrier, the strategy team will also encompass the office of the CEO, enterprise strategy and fleet.

Hagen has been with WestJet for more than eight years and has held a variety of roles in that time including corporate development and planning, and head of investor relations. During this time, he played key roles in important company milestones including the airline’s purchase by Onex and the current Sunwing acquisition, awaiting regulatory approvals.

[Mostly Harmless]

Here's how I read the plan from listening to the plan and reading the press releases:

The WestJet Group’s strategic path forward for our guests, employees and the communities we serve

The WestJet Group yesterday brought together leaders, representing all parts of the operations and business, to hear directly from Chief Executive Officer (CEO), Alexis von Hoensbroech, as he shared plans for growth into the COVID recovery, and the airline’s commitment to embracing its cost-conscious roots in service of affordable air travel for Canadians.

“The immediate priority is to ensure we are ready for the high volume of pent-up travel demand this summer,” said Alexis von Hoensbroech, CEO of the WestJet Group. “Equally important is charting a path that continues to grow WestJet as the friendly, reliable and affordable airline our guests know and love.”

Since arriving on February 15, 2022, von Hoensbroech spent his first 100 days getting to know the airline’s people, guests and network. Joining at a critical inflection point as the WestJet Group emerges from the pandemic, the executive team around von Hoensbroech and WestJet’s board of directors undertook a strategic review to determine the best course for sustained future success for the airline and its people.

“WestJet is strong foundationally, having weathered the pandemic as perhaps the world’s only airline of scale that did not accept sector-specific government funding or issue any new equity or debt. We’re now at an exciting and pivotal moment for the industry and our airline,” continued von Hoensbroech. “As we emerge from the pandemic, the world around us is changing with rising inflation and instability from the war in Ukraine. We are also facing industry-specific challenges, including spiking oil prices and staffing shortages at airports.” - We had enough money to make it through the pandemic on our own, we had enough money to buy another airline, we don't have enough money to pay competitive wages to our employees.

The WestJet Group’s strategic growth plans

Through the strategic review, the airline looked to historical strengths to secure future success, honing in on a focused network and strategy; an unrelenting cost commitment; and a consistent, superior guest experience.

To build upon the reasons why guests choose WestJet and drive future growth, WestJet will renew its focus on:

Growth as a low-cost carrier that is friendly, reliable and modern
Shifting resources to significantly grow its presence and network in the West, fostering its undisputed status as the home-team carrier of Western Canada offering more direct, non-stop flights to communities
Investing further in leisure and sun flying as a priority across Canada, including through the acquisition of Sunwing, following regulatory approval
Investing in technology and radical digitalization to improve guest experience and simplify internal processes to ensure meaningful and engaging jobs for its people
Redoubling efforts to maintain its successful and highly productive low-cost structure and culture, to ensure relentless competitiveness and affordability for guests
To match its commercial strategies, the airline will centre its existing widebody 787 Dreamliner fleet around Western Canada and, for the time being, pause further investment into incremental Dreamliners to focus instead on additional narrowbody growth. In addition to the more than 30 Boeing 737 MAX aircraft that the airline will receive over the coming years, including 15 in 2022 alone, WestJet is working towards a substantial additional narrow body order. - Many, and I mean many, emails and videos have gone out over the last several years referring to WJ as the premium brand, and swoop as the low cost brand. When they say further investment in leisure brands and only mention swoop and sunwing combined with the "pause" in the 787 program it's not difficult to see where all future growth in the company will be and where no growth will occur. So, the order of 30 Max aircraft is pointless as that order is divided among 2 and possible 3 airlines without context to how many NG aircraft are going to be retired during the same period.

The airline will maintain its current premium offerings, with a focus on strengthening its premium leisure segment and corporate premium in the West. The focus of WestJet’s regional fleet of De Haviland Q400 aircraft will be shifted and rightsized to focus on Western Canada, removing complexity from operations, and prioritizing the airline’s commitment to enhance Western Canada’s connectivity. - We won't shrink WJ (well seat wise, the Max has more seats than the NG so possibly less tails) but we aren't going to grow it. The attempt to move flying to our lower cost regional airline and force passengers on to Dash 8-Q's was soundly rejected by the traveling public and we are unable to staff the regional any more as everyone is leaving for better opportunities.

Network changes are complex and will be phased in over an extended period of time. The airline is committed to engaging with communities and stakeholders in these plans. Guests can anticipate seeing changes gradually implemented by summer 2023.

“We will deploy our aircraft where they can be of greatest service to Canadians,” explained von Hoensbroech. “While we will be investing the majority of our fleet in the West, as a national airline we will maintain a significant presence in the Eastern provinces, primarily through direct connections to our Western cities, while significantly enhancing our network to leisure and sun destinations, including through our acquisition of Sunwing.” - Again, sunwing's name prominently mentioned and WJ's name noticeably absent.

WestJet will also continue to significantly scale other areas of the business that remain critical, namely WestJet Cargo, Loyalty, WestJet Vacations and Swoop, it’s ultra-low-cost carrier. The acquisition of Sunwing will facilitate the scaling of WestJet Vacations and Swoop. - Once again, swoop and sungwing growth highlighted and WJ will scale in other areas but not grow within the WestJet Group of companies.

“Swoop is an important part of our strategy with a tremendous cost structure, and we still have plenty of room to grow and bring lower fares to our guests,” added von Hoensbroech. “WestJet and Swoop will run more complementary networks and collectively meet the demand of leisure travellers.” Look who's being highlighted yet again. 2nd time in 2 paragraphs. I suspect more route cannibalization with swoop being the winner on that routing lottery. Continuous mention of how much cost advantage swoop has is indicative of where they want to place wages and working conditions.

Strengthening the airline’s leadership team, the WestJet Group announced the addition of Bob Cummings as President of Swoop on April 13, along with Kirsten de Bruijn, Executive Vice-President, Cargo on April 5 and Karl Schuster, Executive Vice-President and Chief Loyalty Officer late last year.

“WestJet’s low-cost roots have been the foundation of the historical success of our company. As we realize our ambitious growth plans, we will bring more air service to Canadian communities and connect more people to what matters most, through friendly and affordable air travel,” concluded von Hoensbroech.

New leadership team introductions... nothing to comment on there.

Essentially, my read on the plan is this: To turn WJ proper into a zombie company. Not dead but not alive either. Just a stagnant airline who will slowly wither and die as Max's replace NG's and the fleet size slowly dissipates over time. All future growth will happen at swoop and sunwing. Tails will be added to both airlines and all upgrades and hiring will be there including any flow from Encore. Scope is now the single most important part of our contact from a pilot's point of view.

That's my read on the plan, you may or may not agree but time will tell how it all unfolds.

Additional thoughts: Management repeatedly stated swoop was there to prevent others from entering the ULCC market. It did not succeed. It did destroy morale and culture, divided the work groups in the company and increase complexities and costs. The market reaction to this announcement has been to send Air Canada's stock up. Seems like the ghost of Clive is still alive and running the company.

[Launchpad1]

Yes it is.Looked south of the border lately? Been around in the late 70's and 80's? This is going to be quite a show with a completely out of touch fed govt denying that anything is wrong. Wowsers. To stabilise this situation, at some point interest rates must exceed inflation. Real inflation not the doctored govt numbers.That is exactly what happened last time we had inflation like this.Somebody had to step up to the plate and do the dirty work..But not before the economy took a real good kick in the teeth. And this time around people are far deeper in debt and far more illiterate when it comes to economics 101.
Sooooooooo......how do you think 20% interest rates will affect life? Yeah I thought so. Good luck.

Oh no don't get me wrong, I agree with you - especially on the interest rate having to get above inflation. Just wondering why you think it's going to wipe out the east and not the west.

[Tbayer2021]

Yes it is.Looked south of the border lately? Been around in the late 70's and 80's? This is going to be quite a show with a completely out of touch fed govt denying that anything is wrong. Wowsers. To stabilise this situation, at some point interest rates must exceed inflation. Real inflation not the doctored govt numbers.That is exactly what happened last time we had inflation like this.Somebody had to step up to the plate and do the dirty work..But not before the economy took a real good kick in the teeth. And this time around people are far deeper in debt and far more illiterate when it comes to economics 101.
Sooooooooo......how do you think 20% interest rates will affect life? Yeah I thought so. Good luck.

Oh no don't get me wrong, I agree with you - especially on the interest rate having to get above inflation. Just wondering why you think it's going to wipe out the east and not the west.

Because Westerners are much more financially conservative of course. What? You think those patch workers with the brand new lifted trucks, couple of quads or side-by-sides, sled, the Rubicon for the SAHM plus all the hunting gear are indebted up to their eyeballs? Think again!

/s just in case.

[flyinhigh]

Both colgan guys had over 1500 hours? don't see your point

Both pilots at Colgan were suffering from fatigue that could have been solved by paying them what they're worth so that they could afford a hotel room with a bed.

While I understand what your saying, I'd say the overall statement is not true. I personally know captains that have slept/sleep on the couch in the crew room to save a buck. Theory is right, but reality is not.

[727driver]

Anecdotal evidence to support your own personal opinion is common these days but highly inaccurate and bias. Seeing a captain sleeping on a couch in a crew room to save a buck or a ruff neck in his monster truck towing a bunch of quads down the highway and using that to support an opinion is weak at best. Data if collected properly harbour no bias and speak truth. Debt levels and delinquency rates are real data and cannot be massaged to support or discredited one’s opinion. Although debt levels have declined slightly in Alberta the top province for debt delinquency is Alberta at this time and two of the three largest provinces in terms of population and economic activity are in the central east have a debt and delinquency rate 20% lower than Alberta. That’s what the data shows so draw your own conclusions from that. See below the article from June 1. Having said that, return to fundamentals when a new direction doesn’t yield expected returns is a prudent move that should help stabilize the ship. I can see why the new CEO is taking WJ in this direction.

https://www.cbc.ca/news/canada/calgary/ ... -1.6470852

[quikfixxx]

Slightly off topic - any thoughts on what new routes Encore would start flying out west?
Expanding presence suggests servicing additional airports or just more routes?

[goingmissed]

Slightly off topic - any thoughts on what new routes Encore would start flying out west?
Expanding presence suggests servicing additional airports or just more routes?

I don't think there will be any new routes out west for some time. The announcement stinks to high hell... they seem unable to pronounce "Air Canada" and reluctant to say Flair and Lynx more than once before calling them the "idiots eating our lunch."

My bet is that the company is hunkering down for the recession that seems imminent while trying to calm tensions and avoid as much backlash as possible.

[Apestogetherstrong]

Execs have been “eating our lunch” by paying us janitor wages for too long and yet they call lynx and flair idiots. They still think flowing 8 pilots a month is what everyone wanted. Nah! pay us delta wages. You guys are creating a bigger mess. Come up with a retention plan now Alex!

[Canadaflyer46]

Execs have been “eating our lunch” by paying us janitor wages for too long and yet they call lynx and flair idiots. They still think flowing 8 pilots a month is what everyone wanted. Nah! pay us delta wages. You guys are creating a bigger mess. Come up with a retention plan now Alex!

It was incredibly embarrassing to watch him call the competitors insulting schoolyard names. I imagine that wouldn’t have been his choice, and the BOD/Clive have already got to him. For such an experienced, respected airline executive (and physics PhD holder) to resort to childish name calling was cringe-worthy and did not come across well.