Canada’s WestJet Joins the Discount Airline Arms Race

May 3, 2017

WestJet Airlines Ltd. began life 21 years ago as a low-cost airline in the Southwest Airlines vein: Low fares and minimal frills. Over the years, as it sought to compete and grow, the frills, fares, and costs grew along with it. Now, the Canadian-based carrier isn’t only headed back to its discount roots, it’s digging even deeper.

The airline is planning to tackle the cheapest segment of the air-travel market by launching an ultra low-cost carrier (ULCC) modeled on Ryanair.

WestJet describes the move as defensive, fending off incursions from rivals and helping stem the flow of some 5.5 million Canadian leisure travelers who cross the border to fly bargain airlines such as Allegiant Travel Co. and Spirit Airlines Inc. This domestic leakage has spurred entrepreneurs to consider starting other ultra low-cost airlines in Canada, a nation notorious for steep aviation operating costs and airfares.

Read more: https://www.bloomberg.com/news/articles/2017-05-03/canada-s-westjet-joins-the-discount-airline-arms-race