WestJet lease of bigger plane spurs long-haul talk
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WestJet lease of bigger plane spurs long-haul talk
Good Morning All:
This is off of Reuters but the interesting part of this is at the last of the report.
The aircraft comes from North American Airlines which will not only lease the aircraft but with pilots, flight attendants and maintenance engineers.
It would be intersting to hear from our friends in CYYC how this went over when it was announced by their management.
WestJet lease of bigger plane spurs long-haul talk
Stocks
WestJet Airlines Ltd.
WJA.TO
$13.77
+0.00+0.00%
12:00am EST
Air Canada, Inc.
ACa.TO
$3.64
+0.04+1.11%
12:00am EST
Air Canada, Inc.
ACb.TO
$3.63
+0.02+0.55%
Dec 21, 2010 3:48pm EST
Current fleet comprised only of Next-Gen 737 aircraft
International routes proving to be profitable
VANCOUVER Dec 21 (Reuters) - WestJet Airlines Ltd's (WJA.TO) announcement on Tuesday that it will lease a big long-range plane has sparked speculation the airline is thinking of abandoning its commitment to a single-type fleet of planes so that it can fly longer-haul routes.
WestJet, Canada's second-biggest airline, said on Tuesday it will operate a leased Boeing 757-200 to provide nonstop service between its base in Alberta and Hawaii from mid-February to end-April next year.
Until now, WestJet has operated a fleet of Boeing Next-Generation 737 aircraft, flying to destinations in Canada, the United States, the Caribbean and Mexico.
The single-type fleet has been a key plank in its low-cost strategy as flying only one type of plane reduces costs such as training and maintenance.
But the 737's range is limited and WestJet could be looking for avenues to expand.
"We view the news as an indication that WestJet may introduce larger aircraft into their fleet going down the road in an effort to compete on longer-haul routes," RBC Capital Markets airline analyst Walter Spracklin said.
"Other airlines are growing significantly in international routes due to the sizable demand. We know these are profitable routes," he said.
Air Canada (ACa.TO) (ACb.TO), WestJet's bigger rival, boosted operating income five-fold in its most recent quarter, partly because of strong demand on international routes.
WestJet said there was no truth to the talk that it would add variety to its fleet to fly further afield.
"This is not the beginning of a new fleet type or a fleet change, but rather, a clear demonstration that we have the creativity, flexibility and commitment to assert our competitive advantage in the market, particularly in Alberta," spokesman Robert Palmer said.
The winter and spring months are a popular time for Canadians to escape to warmer destinations such as Hawaii. WestJet last spring also operated a nonstop flight from Alberta to Hawaii using its own 737-700 aircraft, but it could not sell all the seats due to weight and fuel constraints.
WestJet is leasing the 757-200 from North American Airlines, a charter air service provider and a subsidiary of Global Aviation Holdings [GLALG.UL].
North American will provide pilots, flight attendants and maintenance engineers to operate and service the aircraft.
WestJet's stock was down 1 Canadian cent at C$13.70 on the Toronto Stock Exchange on Tuesday afternoon against the trend of a firmer market.
($1=$1.02 Canadian) (Reporting by Nicole Mordant; editing by Peter Galloway
This is off of Reuters but the interesting part of this is at the last of the report.
The aircraft comes from North American Airlines which will not only lease the aircraft but with pilots, flight attendants and maintenance engineers.
It would be intersting to hear from our friends in CYYC how this went over when it was announced by their management.
WestJet lease of bigger plane spurs long-haul talk
Stocks
WestJet Airlines Ltd.
WJA.TO
$13.77
+0.00+0.00%
12:00am EST
Air Canada, Inc.
ACa.TO
$3.64
+0.04+1.11%
12:00am EST
Air Canada, Inc.
ACb.TO
$3.63
+0.02+0.55%
Dec 21, 2010 3:48pm EST
Current fleet comprised only of Next-Gen 737 aircraft
International routes proving to be profitable
VANCOUVER Dec 21 (Reuters) - WestJet Airlines Ltd's (WJA.TO) announcement on Tuesday that it will lease a big long-range plane has sparked speculation the airline is thinking of abandoning its commitment to a single-type fleet of planes so that it can fly longer-haul routes.
WestJet, Canada's second-biggest airline, said on Tuesday it will operate a leased Boeing 757-200 to provide nonstop service between its base in Alberta and Hawaii from mid-February to end-April next year.
Until now, WestJet has operated a fleet of Boeing Next-Generation 737 aircraft, flying to destinations in Canada, the United States, the Caribbean and Mexico.
The single-type fleet has been a key plank in its low-cost strategy as flying only one type of plane reduces costs such as training and maintenance.
But the 737's range is limited and WestJet could be looking for avenues to expand.
"We view the news as an indication that WestJet may introduce larger aircraft into their fleet going down the road in an effort to compete on longer-haul routes," RBC Capital Markets airline analyst Walter Spracklin said.
"Other airlines are growing significantly in international routes due to the sizable demand. We know these are profitable routes," he said.
Air Canada (ACa.TO) (ACb.TO), WestJet's bigger rival, boosted operating income five-fold in its most recent quarter, partly because of strong demand on international routes.
WestJet said there was no truth to the talk that it would add variety to its fleet to fly further afield.
"This is not the beginning of a new fleet type or a fleet change, but rather, a clear demonstration that we have the creativity, flexibility and commitment to assert our competitive advantage in the market, particularly in Alberta," spokesman Robert Palmer said.
The winter and spring months are a popular time for Canadians to escape to warmer destinations such as Hawaii. WestJet last spring also operated a nonstop flight from Alberta to Hawaii using its own 737-700 aircraft, but it could not sell all the seats due to weight and fuel constraints.
WestJet is leasing the 757-200 from North American Airlines, a charter air service provider and a subsidiary of Global Aviation Holdings [GLALG.UL].
North American will provide pilots, flight attendants and maintenance engineers to operate and service the aircraft.
WestJet's stock was down 1 Canadian cent at C$13.70 on the Toronto Stock Exchange on Tuesday afternoon against the trend of a firmer market.
($1=$1.02 Canadian) (Reporting by Nicole Mordant; editing by Peter Galloway
Last edited by a330pilotcanada; 23rd Dec 2010 at 13:04. Reason: clarity
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From what I'm hearing it went over very well with both the FAs and the pilots. I hear Greg went to great pains to explain things in detail so there would be no misconceptions which would lead to idle speculation. I have yet to hear any grumblimgs from anyone.
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I have a couple of friends that work there and I can tell you that there are some grumblings. (albeit quiet ones for now) Some are pissed about losing the flying (and of course the layovers) and others are upset that they have delayed taking delivery of 737's along with any possible upgrades and are now wet leasing another A/C to do their flying.
WJ does a very good job at keeping these kind of concerns out of the public eye but they are still there.....
WJ does a very good job at keeping these kind of concerns out of the public eye but they are still there.....
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bcflyer
Of course there is some grumbling.
You get a thousand pilots and there will always be some on the other side of ANY issue.
I would estimate the high 90's percentile are onside this program.
Of course there is some grumbling.
You get a thousand pilots and there will always be some on the other side of ANY issue.
I would estimate the high 90's percentile are onside this program.
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Wonder why they don't just put in the belly tank in the 737-700 to make the flight? Wetlease of an American 757 is a dangerous gamble to the WJ pilots. It might be great for the corporation but bad for advancement. Time will tell.
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I always find it amazing how quickly they circle the wagons at the teal team as soon as there is any mention of dissention in the ranks.. I'd be willing to bet that there are alot more than %10 of the pilots worried about this...
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"I always find it amazing how quickly they circle the wagons at the teal team as soon as there is any mention of dissention in the ranks.. I'd be willing to bet that there are alot more than %10 of the pilots worried about this..."
Interesting.....I always find it amazing at how quickly some look to criticize our way of doing things. Seems to be working pretty well so far.
As for circling the wagons...it sure is better than beating one another to death and internal infighting.
Interesting.....I always find it amazing at how quickly some look to criticize our way of doing things. Seems to be working pretty well so far.
As for circling the wagons...it sure is better than beating one another to death and internal infighting.
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I have yet to talk to anyone who thinks this is a bad idea. I have yet to talk to anyone who thinks this is anything other than a good idea that might actually help some guys get their 4th bar. You call it circling the wagons... I like to think of it as calling you on your bu// shi//.
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I have yet to talk to anyone who thinks this is a bad idea. I have yet to talk to anyone who thinks this is anything other than a good idea that might actually help some guys get their 4th bar. You call it circling the wagons... I like to think of it as calling you on your bu// shi//.
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Yeah, no kidding! As an aside, and in ref to a comment above, it's quite funny to listen to, and watch the flailing of hands when someone makes any disparaging (sp?) remarks against precious WS...the teal and blue team comes charging and the hail of playground smack talk thrown back is pretty cute! I suppose the corporate culture forbids individuals from standing up for themselves if they believe in something...sad...
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I did'nt think I was flailing my hands.
I thought I was adding INFORMATION. Look closely...I actually agreed with bcflyer , although after sifting through his link I was only able to find 3 grumblers with only one of those having a serious burr up his butt. Like I said , there are always differing opinions but I would imagine that even those that are against this are still pretty happy to be where they are.
You guys go ahead and believe what you want. It really makes no difference to the outcome.
I thought I was adding INFORMATION. Look closely...I actually agreed with bcflyer , although after sifting through his link I was only able to find 3 grumblers with only one of those having a serious burr up his butt. Like I said , there are always differing opinions but I would imagine that even those that are against this are still pretty happy to be where they are.
You guys go ahead and believe what you want. It really makes no difference to the outcome.
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You bring us AvCanada as a source? You got to do better than that
What I do know is that some of my friends who fly there have told me face to face that they're concerned about where this deal could lead. I personally don't care what WJ does. I don't work there. My point is that not everyone is ok with giving away long, high credit legs and Hawaii overnights. To believe otherwise is akin to drinking the koolaid and then burying your head in the sand.
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As one West Jetter said to me, "A 757 will take a lot of the pucker factor out of the last 100 miles on HNL flights",{ He was then grabbed and given a large Kool Aid by management to correct his attitude. }
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Tough to compete against AC's 767's direct to Hawaii from YYC when you need to minimise middle seat sales to maximise range and depending on the winds across you might still need to drop into a west coast airport for fuel . Unless you change the Westjet model as a "LCC" they needed to wet lease the 757's to keep the route viable. It was good to see AC go back to YYC and do the Hawaii legs direct. Good for competition and customers.
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I see permanent teal coloured Kool-Aid stains around many mouths there.
Until they join ALPA.
The bloom is just taking a little longer to come off the rose than most thought. Two trips to DCA to talk to ALPA a couple of years ago? Thought the kool-aid party was over then.
A few more years of Captains having to groom cabins ought to do it...coupled with FO's sitting right seat for a decade as orders dwindle.
But no worries...you guys are outsourcing flying. That'll get the promotion train chuggin along again!
Until they join ALPA.
The bloom is just taking a little longer to come off the rose than most thought. Two trips to DCA to talk to ALPA a couple of years ago? Thought the kool-aid party was over then.
A few more years of Captains having to groom cabins ought to do it...coupled with FO's sitting right seat for a decade as orders dwindle.
But no worries...you guys are outsourcing flying. That'll get the promotion train chuggin along again!
Last edited by bunkhog; 3rd Jan 2011 at 19:40.
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