Ultra low-cost carrier Swoop is stimulating a new market rather than cannibalising that of its parent WestJet, according to the airline’s chief executive Steven Greenway.
Routes Americas 2019 in Quebec takes place against a backdrop of growth in the Canadian market, with further capacity increases expected this year as the country’s ULCC market begins to take off.
Seasoned airline executive Steven Greenway took the helm of WestJet’s ultra low-cost carrier Swoop less than a year ago, overseeing its launch and the subsequent growth of its route network. Ahead of his participation at Routes Americas 2019 in Québec City, he tells Routesonline why the airline is appealing to a new breed of Canadian travellers.
Star Alliance members Air Canada and Air China have deepened their existing partnership by signing a joint venture agreement. The deal comes amid a strong increase capacity between the two countries.
WestJet’s new ultra low-cost arm will have six aircraft in service before the end of the year, the carrier’s chief executive has confirmed, with plans to expand trans-border and internationally.
Norwegian has so far concentrated on expanding its transatlantic services into the US and Argentina, but Canada appears to be next on the radar of the long-haul low-cost carrier - and its first routes to the North American country could be just months away.
Atlantic Canada has experienced tremendous growth in its air services over the last few years, with more opportunities to serve key markets in the New England and the mid-Atlantic United States, and the UK.
Capacity between Canada and China has steadily increased in recent years and the two countries' Year of Tourism will seek to further develop air links.
The chief executive of WestJet has admitted the airline would look at a potential revenue-sharing arrangement or joint-venture with a US carrier as it pushes forward its expansion strategy.
WestJet Airlines’ planned ultra low-cost subsidiary will start services in the summer of 2018 as the Canadian carrier seeks to further disrupt the industry.
The launch of the as yet unnamed business remains subject to agreement with its pilots and any required regulatory approvals. Details of its plans also remain vague but WestJet confirms it will aim to “provide Canadians with no-frills, lower-cost travel options” and will operate with an initial fleet of ten high-density Boeing 737-800s.
Canada’s 150th anniversary is the ideal time to visit a vast country that offers something different at every turn, yet the surprises don’t extend to the downtrodden aviation industry that may soon see its fortunes change.
In the last year an estimated 240,000 bi-directional O&D passengers flew between Canada and Israel, approximately 325 PPDEW (Passengers Per-Day Each-Way). This is dominated by the direct Toronto – Tel Aviv operations which account for over half of the traffic (135,000 passengers), but there is already sizeable indirect flows from Montreal and Vancouver.
Originally marketed as an ultra-low cost carrier, NewLeaf had planned on offering domestic and international flights within and from Canada, serving regional communities as opposed to busy hubs. Services were soon withdrawn from their website as there was uncertainty over licencing requirements.
