New WestJet short-haul carrier would be separate

The new short-haul carrier WestJet Airlines Ltd. is considering would operate separately from the main airline, but help draw more traffic into its network, CEO Gregg Saretsky said Thursday.

"This will be a wholly owned subsidiary with a single fleet of turboprops, where the operations, the maintenance, the in-flight, the airport and the pilots are part of a separate company, but owned by the same parent," he told an investor conference in New York.

The move would benefit the main network, though, as it would draw more passengers from smaller destinations into major hubs, such as Calgary, he told the conference, sponsored by the Raymond James brokerage.

The Calgary company announced last month it is considering a regional carrier that would give it a presence in smaller markets where competitor Air Canada is currently the only game in town.

Air Canada Jazz provides regional flights across the country for the Montreal carrier under a contract with Jazz Aviation LP, a former Air Canada company now owned by Halifax-based Chorus Aviation.

WestJet's fleet currently comprises one type of aircraft, Boeing 737s that can carry between 119 and 166 passengers. Those planes are too big to economically shuttle passengers between small destinations like Lethbridge, Alta., or Hamilton.

The company has called its single-fleet strategy its "secret sauce" for keeping costs low as it simplifies training, maintenance and other tasks.

Saretsky said the regional carrier would follow the same recipe.

The Canadian Press