WestJet Targets Business Travellers in Canadian Skies

Canadian low-cost carrier WestJet Airlines is to boost its schedules between Toronto and Montreal and Toronto and Ottawa to increase its share of the lucrative ‘eastern triangle’ market. From May 2, it plans to offer ten flights every weekday to Montreal and nine per day to Ottawa, competing strongly with Air Canada for business traffic.

"This initiative demonstrates our commitment to offer the business traveller what they need in this important market," said the airline’s Executive VP-Sales, Marketing and Guest Experience, Bob Cummings. "We're building on our great service, offering new features and conveniences that make WestJet a compelling and relevant choice for our guests traveling on business.”

The additional flights will depart at peak hours and WestJet is tailoring its product to ensure efficient access for passengers using “easy access gates”, free transfers to earlier or later flights and complementary wine and beer on board. Additionally, customers traveling between the cities will be offered 50 per cent off their next flight if their aircraft is delayed by more than 30 minutes, while if a flight is cancelled, they will receive "full credit for the cost of their ticket plus 50 per cent off their next flight."

Source: IATA BSP

As the table above (Toronto – Montreal) and below (Toronto – Ottawa) show, Air Canada dominates the two markets, offering almost three-times as many weekly frequencies as WestJet. However, the low-cost carrier will compete strongly on price and is confident that despite is lower frequency it can attract custom through its product initiatives. "Our low-cost structure allows us to comfortably price the triangle at considerably lower levels throughout the fare structure," said Bob Cummings.

Source: IATA BSP

WestJet will also face competition from regional carrier Porter Airlines which offers 82 flights per week from Toronto City Centre Airport to Montreal Pierre Elliott Trudeau International and 92 to Ottawa Macdonald Cartier International. Approximately 1.4 million O&D passengers used the Toronto Lester B. Pearson International – Montreal Pierre Elliott Trudeau International route in the year ending November 2010, with a further 360,000 using Porter’s flights from Billy Bishop Toronto City Airport. The Toronto Lester B. Pearson International to Ottawa Macdonald Cartier International is not as busy, with 835,000 passengers reported during the analysis period.