WestJet New Direction

[Longtimer]

WestJet’s Commercial Strategy Director: Why The Airline Must Change
James Pearson - 2h ago
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https://www.msn.com/en-ca/travel/news/w ... ab3eeba12a


WestJet’s Commercial Strategy Director: Why The Airline Must Change
WestJet’s Commercial Strategy Director: Why The Airline Must Change
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WestJet took to the sky nearly three decades ago in 1996. While Calgary has always been its most-served airport by flights, it has inevitably spread country-wide to penetrate the wider nation. However, then as now, Canada remains considerable geographically but not population-wise, a tough nut to crack.

It attempted to be everything to everyone, initially using its own metal and then deploying other units – regional WestJet Encore and ULCC Swoop – with more appropriate cost structures and products for the targeted markets. The desired acquisition of vacation carrier Sunwing further shows this segmentation by unit.

Best of the West?
By now, it should be of little surprise to readers that WestJet itself is to double down on Calgary in partnership with Alberta's government. It comes as Canada's ULCCs proliferate and WestJet's yields suffer.

Speaking at Routes World in Las Vegas, Frank Satusky, WestJet's Director of Commercial Strategy, said:

"We were building up hub operations [including with 787s] in multiple cities in Canada as the pandemic came. Coronavirus hit us pretty hard in that we weren't at our maturity level with that strategy.

"We really had to take a step back and ask, where are we today, and where do we want to get to? What can we double down on, and what do we need to pull back on? [i.e., unprofitable flying that also doesn't contribute enough network-wise].

"At the same time, we had a new CEO join us [Alexis von Hoensbroech in December 2021]. We started off down a new path... to really own Canada's West [Calgary, Edmonton, Vancouver, while Air Canada mainly focuses on Toronto and Montréal]. That's the path we're going down, and taking other aspects of our business model like our 787s."
Refocusing, stabilizing
As Satusky commented:

We can't be everything to everyone. We must focus. Where we can do things and succeed, we will. Calgary is exactly that. It is our strongest market. It is a challenge to refocus and there's a way to go.

We'll develop a really strong hub in Calgary, which will also help us to compete against the ULCCs by having a better value proposition by offering a broader range of destinations. It'll give us more competitive strength.

We'll grow our network into the US and potentially also Asia [from Calgary] at some point. But, we're keen to protect existing slots at other Canadian airports, especially at Toronto Pearson [it's unclear where exactly it'll fly from there in the future]."

Discover more aviation news.

All 787s to be in Calgary
WestJet has seven 320-seat 787-9s, all delivered between January 2019 and September 2022. In 2019, when it had three 787s, it flew the widebodies from Calgary and Toronto, with Vancouver flying starting in 2020. They're still used from these three cities.

Needless to say, it followed the approach of its 767-300ERs, which were used between 2015-2020. In that time, they were deployed on routes from Toronto, Calgary, Vancouver, Edmonton – and Winnipeg.

Things will look different, Satusky says. Yes, it has paused its widebody fleet at seven, but all "intercontinental" 787 flights will be from Calgary. This suggests that Toronto and Vancouver to London will end, freeing up equipment to fly from Calgary.

[Mach1]

Corporate speak translation mode, engaged:

then deploying other units – regional WestJet Encore and ULCC Swoop – with more appropriate cost structures and products for the targeted markets.

Lower employee wages and benefits... Executive compensation will remain untouched or improve.

By now, it should be of little surprise to readers that WestJet itself is to double down on Calgary

While we continue to shrink our brand to shed those overpaid employees while slowly shifting our "Brand" out of existence.

We were building up hub operations [including with 787s] in multiple cities in Canada as the pandemic came. Coronavirus hit us pretty hard in that we weren't at our maturity level with that strategy.

Mistakes were made by the executives but we'll never admit that.

We really had to take a step back and ask, where are we today, and where do we want to get to? What can we double down on, and what do we need to pull back on?

How do we shift more and more of our work to our lowest cost labour group and get rid of our higher paid employee group. Bonuses have to come from somewhere.

and taking other aspects of our business model like our 787s

Like, how do we get those 787's on Swoop and Sunwing's OC's? How can we get pilots to fly a 757 (Max 10) for the wages of a King Air Pilot?

We can't be everything to everyone. We must focus. Where we can do things and succeed

So we will chase the absolute bottom end of the market because paying market wages to our employees is far more distasteful to the executives than competing in the premium category.

We'll grow our network into the US and potentially also Asia [from Calgary] at some point.

Just not with WJ branded machines.

Needless to say, it followed the approach of its 767-300ERs

Which we openly wanted to place with Swoop but when that was blocked by scope we just got rid of them.

Things will look different, Satusky says.

The future is pink.

[Canadaflyer46]

Corporate speak translation mode, engaged:

then deploying other units – regional WestJet Encore and ULCC Swoop – with more appropriate cost structures and products for the targeted markets.

Lower employee wages and benefits... Executive compensation will remain untouched or improve.

By now, it should be of little surprise to readers that WestJet itself is to double down on Calgary

While we continue to shrink our brand to shed those overpaid employees while slowly shifting our "Brand" out of existence.

We were building up hub operations [including with 787s] in multiple cities in Canada as the pandemic came. Coronavirus hit us pretty hard in that we weren't at our maturity level with that strategy.

Mistakes were made by the executives but we'll never admit that.

We really had to take a step back and ask, where are we today, and where do we want to get to? What can we double down on, and what do we need to pull back on?

How do we shift more and more of our work to our lowest cost labour group and get rid of our higher paid employee group. Bonuses have to come from somewhere.

and taking other aspects of our business model like our 787s

Like, how do we get those 787's on Swoop and Sunwing's OC's? How can we get pilots to fly a 757 (Max 10) for the wages of a King Air Pilot?

We can't be everything to everyone. We must focus. Where we can do things and succeed

So we will chase the absolute bottom end of the market because paying market wages to our employees is far more distasteful to the executives than competing in the premium category.

We'll grow our network into the US and potentially also Asia [from Calgary] at some point.

Just not with WJ branded machines.

Needless to say, it followed the approach of its 767-300ERs

Which we openly wanted to place with Swoop but when that was blocked by scope we just got rid of them.

Things will look different, Satusky says.

The future is pink.

Absolutely hit the nail on the head Mach1.

[lownslow]

The future is pink.

That seems like such an awful misstep if true. The WestJet brand built up such a good name in Canada and now for whatever reason they don’t want to use it.

[averageatbest]

The future is pink.

That seems like such an awful misstep if true. The WestJet brand built up such a good name in Canada and now for whatever reason they don’t want to use it.

They took the playbook and management from Austrian and from Wizz and are trying to implement it here because our Onex overlords require more money in their pockets without regard for anyone or anything else.

[safetyfirst123]

Very well said Mach1.

The future is pitting teal vs pink vs orange. The labour groups need to stick together on this one, because it's going to be a rough ride for at least the next year or two under the Westjet umbrella.

[Gear Jerker]

I'm not as pessimistic, but definitely watching closely.

It's true that the company has been beating the cost reduction drum pretty hard lately, but I'm not aware of them saying they're actually trying to compete with Flair (100% off base fare, for instance) on the WJ side, and if I'm not mistaken Swoop is scoped to 30 tails? Guess we'll see with the negotiations if they attempt to move the needle on that piece.

Simplifying the business with mostly 737 flying (and adding tails), closing the Q base in YYZ and a selective deployment of 787 flying, as opposed to competing hard to gain market share in the east on the business travel side, with the Sunwing deal adding demand; whatever the execution looks like, unknown at the moment. Overall being closer to a one fleet type airline is a cost saving move.

I think we're a group who is pretty motivated to cross the picket line if we aren't heading toward some fair gains on CA2, or if they try to pull some **** with Swoop scope/LOA.

Anyway, on the one hand I don't believe 90% of what the company tells us but on the other hand the strategic moves do strike me as logical for the business as it is today.

[sarg]

I'm not as pessimistic, but definitely watching closely.

It's true that the company has been beating the cost reduction drum pretty hard lately, but I'm not aware of them saying they're actually trying to compete with Flair (100% off base fare, for instance) on the WJ side, and if I'm not mistaken Swoop is scoped to 30 tails? Guess we'll see with the negotiations if they attempt to move the needle on that piece.

Simplifying the business with mostly 737 flying (and adding tails), closing the Q base in YYZ and a selective deployment of 787 flying, as opposed to competing hard to gain market share in the east on the business travel side, with the Sunwing deal adding demand; whatever the execution looks like, unknown at the moment. Overall being closer to a one fleet type airline is a cost saving move.

I think we're a group who is pretty motivated to cross the picket line if we aren't heading toward some fair gains on CA2, or if they try to pull some **** with Swoop scope/LOA.

Anyway, on the one hand I don't believe 90% of what the company tells us but on the other hand the strategic moves do strike me as logical for the business as it is today.

No guarantee that they're adding tails. There's new AC coming but they could just as easily make it 1 in 1out as opposed to growth.

[Longtimer]

https://www.aircargonews.net/technology ... go-launch/

WestJet Cargo selects SmartKargo as it prepares for all-cargo launch
02 / 11 / 2022
By Damian Brett

WJ_Cargo_Thumbnail.png

Source: WestJet

WestJet Cargo has signed up to use the SmartKargo cargo management platform as it prepares to ramp up operations with the addition of its first freighters.

The SmartKargo platform is cloud-based and links with the carrier’s existing systems through API connections. It offers business intelligence, real-time information and machine learning.


The move comes as the carrier has four B737-800 converted freighters ready to start operations on intra-Canada services.

The start date of operations will be announced “very soon”, the carrier said.

“The innovative SmartKargo platform empowers us to develop a very reliable and flexible air cargo business,” Kirstin de Bruijn, WestJet, executive vice president, cargo.

“As we enter a pivotal new chapter for WestJet Cargo, SmartKargo’s cutting-edge cloud platform will propel WestJet Cargo forward by providing a complete solution that includes innovative technology and expertise that will assist us in growing our business to its full potential.”

SmartKargo’s Olivier Houri added: “We are delighted to work with the team at WestJet Cargo to enable their vision for launching a state-of-the-art air cargo business.

“We congratulate them on the successful launch and look forward to working together with them to realise their goals for the business.”

[averageatbest]

https://www.aircargonews.net/technology ... go-launch/

WestJet Cargo selects SmartKargo as it prepares for all-cargo launch
02 / 11 / 2022
By Damian Brett

WJ_Cargo_Thumbnail.png

Source: WestJet

WestJet Cargo has signed up to use the SmartKargo cargo management platform as it prepares to ramp up operations with the addition of its first freighters.

The SmartKargo platform is cloud-based and links with the carrier’s existing systems through API connections. It offers business intelligence, real-time information and machine learning.


The move comes as the carrier has four B737-800 converted freighters ready to start operations on intra-Canada services.

The start date of operations will be announced “very soon”, the carrier said.

“The innovative SmartKargo platform empowers us to develop a very reliable and flexible air cargo business,” Kirstin de Bruijn, WestJet, executive vice president, cargo.

“As we enter a pivotal new chapter for WestJet Cargo, SmartKargo’s cutting-edge cloud platform will propel WestJet Cargo forward by providing a complete solution that includes innovative technology and expertise that will assist us in growing our business to its full potential.”

SmartKargo’s Olivier Houri added: “We are delighted to work with the team at WestJet Cargo to enable their vision for launching a state-of-the-art air cargo business.

“We congratulate them on the successful launch and look forward to working together with them to realise their goals for the business.”

That's great and all, but the company has a continual habit of purchasing aircraft that are not certified and continue to get screwed over because they don't anticipate the length of time and struggles involved in certifying and said aircraft.

737-7
737-10
737-800BCF

[Canadaflyer46]

https://www.aircargonews.net/technology ... go-launch/

WestJet Cargo selects SmartKargo as it prepares for all-cargo launch
02 / 11 / 2022
By Damian Brett

WJ_Cargo_Thumbnail.png

Source: WestJet

WestJet Cargo has signed up to use the SmartKargo cargo management platform as it prepares to ramp up operations with the addition of its first freighters.

The SmartKargo platform is cloud-based and links with the carrier’s existing systems through API connections. It offers business intelligence, real-time information and machine learning.


The move comes as the carrier has four B737-800 converted freighters ready to start operations on intra-Canada services.

The start date of operations will be announced “very soon”, the carrier said.

“The innovative SmartKargo platform empowers us to develop a very reliable and flexible air cargo business,” Kirstin de Bruijn, WestJet, executive vice president, cargo.

“As we enter a pivotal new chapter for WestJet Cargo, SmartKargo’s cutting-edge cloud platform will propel WestJet Cargo forward by providing a complete solution that includes innovative technology and expertise that will assist us in growing our business to its full potential.”

SmartKargo’s Olivier Houri added: “We are delighted to work with the team at WestJet Cargo to enable their vision for launching a state-of-the-art air cargo business.

“We congratulate them on the successful launch and look forward to working together with them to realise their goals for the business.”

That's great and all, but the company has a continual habit of purchasing aircraft that are not certified and continue to get screwed over because they don't anticipate the length of time and struggles involved in certifying and said aircraft.

737-7
737-10
737-800BCF

Exaclty. Not to mention the disaster with those 767s. Always trying to do things on the cheap, and ending up spending more than if they'd just done things properly to begin with. It's the WJ way...tripping over dollars to save dimes.

[Airbrake]

https://www.aircargonews.net/technology ... go-launch/

WestJet Cargo selects SmartKargo as it prepares for all-cargo launch
02 / 11 / 2022
By Damian Brett

WJ_Cargo_Thumbnail.png

Source: WestJet

WestJet Cargo has signed up to use the SmartKargo cargo management platform as it prepares to ramp up operations with the addition of its first freighters.

The SmartKargo platform is cloud-based and links with the carrier’s existing systems through API connections. It offers business intelligence, real-time information and machine learning.


The move comes as the carrier has four B737-800 converted freighters ready to start operations on intra-Canada services.

The start date of operations will be announced “very soon”, the carrier said.

“The innovative SmartKargo platform empowers us to develop a very reliable and flexible air cargo business,” Kirstin de Bruijn, WestJet, executive vice president, cargo.

“As we enter a pivotal new chapter for WestJet Cargo, SmartKargo’s cutting-edge cloud platform will propel WestJet Cargo forward by providing a complete solution that includes innovative technology and expertise that will assist us in growing our business to its full potential.”

SmartKargo’s Olivier Houri added: “We are delighted to work with the team at WestJet Cargo to enable their vision for launching a state-of-the-art air cargo business.

“We congratulate them on the successful launch and look forward to working together with them to realise their goals for the business.”

That's great and all, but the company has a continual habit of purchasing aircraft that are not certified and continue to get screwed over because they don't anticipate the length of time and struggles involved in certifying and said aircraft.

737-7
737-10
737-800BCF

Exaclty. Not to mention the disaster with those 767s. Always trying to do things on the cheap, and ending up spending more than if they'd just done things properly to begin with. It's the WJ way...tripping over dollars to save dimes.

Totally agree we have a history of trying to reinvent the wheel while spending as little as possible.
How could they have done the cargo differently? I would have guessed that the easiest route to get a Boeing aircraft approved for these modifications would have been by having Boeing do the actual work. But admittedly, I have never tried to certify an aircraft in any capacity.
I also don’t know what the hold up is to the point.

[averageatbest]

Totally agree we have a history of trying to reinvent the wheel while spending as little as possible.
How could they have done the cargo differently? I would have guessed that the easiest route to get a Boeing aircraft approved for these modifications would have been by having Boeing do the actual work. But admittedly, I have never tried to certify an aircraft in any capacity.
I also don’t know what the hold up is to the point.

The holdup is that Boeing was given the privilege of self-certifying it's aircraft and abused the privilege causing the death of 346 people.

As a direct result, every aircraft that Boeing is attempting to certify is being forced to prove it's safety instead of assuming that a multi-billion dollar company knows what it's doing.

In addition to that, the MAX 10 delay was very easily predicted before the recent order as the legal challenges they are facing have been publicly known. Boeing is trying to circumvent new safety requirements by threatening it's customers orders to win government exemption.

[JBI]

Don't get me wrong, I'm just as critical as the next guy about some of the recent decisions that have been made (perhaps more so!).

A couple things to note though. With regard to the Cargo 737s, the Executive that ostensibly made the decisions regarding the selection of the aircraft, type and location of the conversions and timing is no longer with the Company.

With regard to the 737-10, I too am skeptical of ordering yet another not fully certified aircraft from Boeing. However, it would not surprise me at all if there are some pretty easy abilities to switch the orders to 737-9 if the -10 doesn't go through.

[Apestogetherstrong]

HaHaHa. Cant stop laughing. Encore MEC is going to AC. LMAO. He flowed to mainline WJ and has 7 years of seniority but instead chose to go to AC. WJ is such a shitty place that the MEC chose to go to AC instead. JA and WJ management this is so shameful but funny at the same time. Hahahha

Jess A

[lostaviator]

We can't even get coffee right. We are screwed.

Sometimes I wonder if the people upstairs even know what the middle folk are up to. Powdered cream. Really? I know it's such a small thing to be concerned about but if we can't get the small things right.

[Mach1]

We have been on a "New Direction" for a while now. That direction is a full reboot of Air Canada; The Robert Milton Era. A long period of labour strife and bad morale where the management hated the employees, the employees took it out on the customer and the customers went elsewhere (WJ to be specific) which culminated in Air Canada going into bankruptcy protection.

This being a reboot, I am just hoping J. J. Abrams isn't producing or directing because.. that man destroys everything he touches. Seriously, how does he keep getting work? But I digress. Reboots are usually much worse than the original. Like no one learned anything from history.

Will we change course? Perhaps. I know the larger the ship, the longer it takes to change course. However, I have seen nothing that would lead me to believe that we are doing anything but hurtling towards our own demise. After all, in CCAA all the contracts are ripped up and everything goes back to zero. It feels like a plan. It looks like a plan. I'm pretty sure it's a plan. I mean, these people couldn't have risen to the rank of executive and been that incompetent by accident, could they?

[GRK2]

New Direction my a*se...here's how much your management team cares about your well being and ability to have some sort of lifestyle. Heard recently that WS management tore up a jumpseat agreement with one of the new carriers that are "Eating our lunch." That makes commuting trickier and it was done, apparently, without any consultation with the union. Just arbitrarily decided that you can't use that privilege anymore. Sounds angry and vindictive to me, it doesn't cost them a dime yet they took it away without a thought towards your ability to get to work if you commute. Sadly is goes both ways, the agreement with the "lunch eater" carrier now ensures that those who use WS to commute are unable to do so. If the management team at your fine carrier is that desperate to inflict losses on the competition that they take away union agreed upon reciprocity they are more desperate than I thought.

It's petty, juvenile and vindictive behaviour and I hope this might serve to strengthen somewhat the ties between our pilot groups.

[jazzyboy]

So imagine trying to negotiate with that crowd. Like the previous post said the fact that someone is focusing on eliminating creamers is sad and symbolic that there is zero focus or direction at WJ. Lets all use big fancy words like "growth" and "new strategy" to instill confidence and yet in the last 2 weeks coffee cream on board has been cut and a newly thought up "attendance management program" for WestJet FAs has been implemented, who by the way work under a collective agreement which mentions NOTHING about said program. There is a reason that there are 400 plus active grievances with the pilot group alone.....respect works both ways. The above description "juvenile and vindictive" is an accurate description of WJ management these days.

[averageatbest]

The above attitudes are exactly the reason why management has no choice but to implement the policies it has and the ones that it is working on. Employees should remember that they are compensated competitively and are given flight benefits. In return, the only thing that the company asks is for complete and utter loyalty and to accept the fact that they are replaceable plebs employed to serve the cattle.

[daedalusx]

Follow your contract to a T.
Document as much as you can.
Stop picking up the phone on your days off.

Things will improve.

[Mach1]

Employees should remember that they are compensated competitively and are given flight benefits.

That's the catch, isn't it governor. The employees are not being compensated competitively and therein lies the problem.

[co-joe]

WestJet's new direction seems to be counter clockwise, around the drain.

[kiaszceski]

WestJet's new direction seems to be counter clockwise, around the drain.

How so?

[Mach1]

Let me count the ways: We used to be a...

Profitable company. We are told we are not that anymore.
Growing. But we had shrunk our fleet over the last couple of years.
Own our planes. We don't anymore.
Own our buildings. I hear we don't anymore.
Have a very loyal customer base. We've done away with that in favour of... well, I'm not sure what we are doing.
Growing widebody fleet with international aspirations. We have cancelled all our widebody orders.
Have employee buy in because we were paid well. We have low pay that has been chipped away and moral is very low.

I'm sure I've missed a lot of points here but... Think Air Canada: The Robert Milton years and that's where we are.