Posted Mar 21, 2010, 11:55 PM
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Registered User
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Join Date: Aug 2006
Posts: 87
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Just for the sake of the argument, let me put on my Machiavellian cap for a minute. I am one of those who see the main strength of Westjet, as a business, as being their adherence to a sensible, but simple, business plan. This is based on the Southwest model, which includes such features as: single aircraft type, domestic only, no food, no interlining, no codeshares, no alliances, no frequent flyer plan, no hubs, etc. This, among other things, allows the company to move quickly to new markets, and protects their low unit costs. Moving from this plan may tap new markets at the cost of their traditional cost advantage.
If one accepts this argument, the upshot is that Westjet will become a new Canadian Airlines. Edmonton service will suffer, since the emphasis will be on providing "feed" to alliance "gateways" which will be Calgary and Toronto.
On the other hand, this will create room for one or more new "low cost" carriers, perhaps on the Ryanair model. This type of carrier would likely be beneficial to centres like Edmonton.
This is a bit far out right now, but anything could happen over the next ten years.
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