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WestJet To Be A Top Five International By 2016  
User currently offlineRickYHM From Canada, joined Jun 2004, 140 posts, RR: 0
Posted (7 years 6 months 1 week 5 days 18 hours ago) and read 10193 times:

Quote:
WestJet shoots to be 'one of the top five airlines internationally' by 2016

June 11, 2007, EDT.
JUDY MONCHUK Canadian Press
CALGARY (CP) -

WestJet Airlines Ltd. (TSX:WJA) is looking to spread its wings and be a major global carrier by 2016, the president of the Calgary-based airline said Monday.
"We believe we can be an international player within 10 years," Sean Durfy told shareholders and industry analysts gathered for WestJet's first-ever investor day.
"Our goal is to be one of the top five airlines internationally" by 2016, Durfy added.
WestJet, which has been lauded as a Western Canadian success story over its 11 years, recently added flights into the Bahamas which Durfy says have been very profitable.
"The other guy was flying there for $1,200 return and we flew there for $550 to $600 and we had great load factors and we made wonderful margins," he said, adding that WestJet executives see many more potential international opportunities.
"We haven't even tapped the market," he said.
Durfy said the carrier is also sees huge potential in the expansion of WestJet vacations, bundling air travel with hotel rooms and car rentals. A key destination for bundled vacations is Las Vegas, where WestJet is the largest seat provider from Canada.

Anyone have any idea what there up to? Type of aircraft they are thinking of?

94 replies: All unread, showing first 25:
 
User currently offlineCFMTurboFan From Canada, joined May 2007, 41 posts, RR: 0
Reply 1, posted (7 years 6 months 1 week 5 days 18 hours ago) and read 10176 times:

First I've heard of it, but that's graet if it's true!

CFMTurboFan


User currently offlineEXAAUADL From , joined Dec 1969, posts, RR:
Reply 2, posted (7 years 6 months 1 week 5 days 18 hours ago) and read 10100 times:

So within ten years WJ will exceed at least one of these airlines in terms of international passeners or revenue?


American Airlines
Lufthansa
Air France
British Airways
Japan Airlines

I'd be shocked if they surpassed AC, but they coudl I guess. Problem is this: A country of 35m somehow has to generate more international traffic than countries many thies that size.



mmmmmhmmmm.


User currently offlineSLCUT2777 From United States of America, joined Dec 2005, 4136 posts, RR: 9
Reply 3, posted (7 years 6 months 1 week 5 days 17 hours ago) and read 9976 times:

Quoting EXAAUADL (Reply 2):
I'd be shocked if they surpassed AC, but they coudl I guess. Problem is this: A country of 35m somehow has to generate more international traffic than countries many thies that size.

Keep in mind percentage wise more than twice as many Canadians travel abroad to countries where they really do need a passport etc... than their American counterparts south of the 49th.



DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
User currently offlineSan747 From United States of America, joined Dec 2004, 4966 posts, RR: 12
Reply 4, posted (7 years 6 months 1 week 5 days 17 hours ago) and read 9931 times:

Start slowly and bring back SAN flights, then I might take the above seriously. Like EXAAUADL said, they have to surpass AA, LH, AF, BA, or JL to attain this... It would be amazing if they actually did.


Scotty doesn't know...
User currently offlineJacobin777 From United States of America, joined Sep 2004, 14968 posts, RR: 59
Reply 5, posted (7 years 6 months 1 week 5 days 17 hours ago) and read 9923 times:

Quoting San747 (Reply 4):
Start slowly and bring back SAN flights

...and SFO flights.... Smile



"Up the Irons!"
User currently offlineAirlineEcon From United States of America, joined Feb 2007, 130 posts, RR: 0
Reply 6, posted (7 years 6 months 1 week 5 days 16 hours ago) and read 9886 times:

I bet his rhetoricis about being a good airline in terms of comfort, quality, service, on-time, not about the majesty of operating flights to 19 different time zones. He can append the adjective "international" because they will fly to countries outside Canada, such as Mexico, the Carribean, and the US. he would have used the word "global" if they intended to cross the atlantic or pacific.

User currently offlineDrgmobile From Canada, joined Aug 2006, 688 posts, RR: 0
Reply 7, posted (7 years 6 months 1 week 5 days 16 hours ago) and read 9869 times:

This statement was one of the most bizarre I have seen in a long time. Just what did he mean by this? WestJet to be one of the top five internationally in size in less than 10 years just doesn't make any sense. Air Canada isn't even in the top five internationally in size.

In 2006/07 Airline Business Ranking, WestJet was:

#71 in the world in passenger traffic (AC #13)
#70 in the world for revenue (AC #14)
#18 in North America for revenue (AC #8)
Not in the top 20 for net profit (AC#14) or operating profit (AC #14)
Not in the top 20 for operating margin


User currently offlineFlyb From Canada, joined Aug 2006, 698 posts, RR: 0
Reply 8, posted (7 years 6 months 1 week 5 days 16 hours ago) and read 9844 times:

Interesting, WestJet is great . . . but will they be able to build up to that in just 8/9 years???

User currently offlineSLCUT2777 From United States of America, joined Dec 2005, 4136 posts, RR: 9
Reply 9, posted (7 years 6 months 1 week 5 days 16 hours ago) and read 9816 times:

Quoting Flyb (Reply 8):
Interesting, WestJet is great . . . but will they be able to build up to that in just 8/9 years???

Keep in mind they are off to a great start operating some of their 737s as charters during the winter months to Mexico from some of the more moderate to smaller (i.e YQL) Canadian originations during the winter months.



DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
User currently offlineDrgmobile From Canada, joined Aug 2006, 688 posts, RR: 0
Reply 10, posted (7 years 6 months 1 week 5 days 16 hours ago) and read 9781 times:

Keep in mind they are off to a great start operating some of their 737s as charters during the winter months to Mexico from some of the more moderate to smaller (i.e YQL) Canadian originations during the winter months.

WestJet would have to grow 14 times or 1331% its current passenger traffic to be as big as the current #4, which is United. With all due respect to YQL and communities like it, let's be realistic here.


User currently offlineRickYHM From Canada, joined Jun 2004, 140 posts, RR: 0
Reply 11, posted (7 years 6 months 1 week 5 days 16 hours ago) and read 9751 times:

Here is the full article


http://www.cbc.ca/cp/business/070611/b0611157A.html


User currently offlineSLCUT2777 From United States of America, joined Dec 2005, 4136 posts, RR: 9
Reply 12, posted (7 years 6 months 1 week 5 days 15 hours ago) and read 9647 times:

Quoting Drgmobile (Reply 10):
WestJet would have to grow 14 times or 1331% its current passenger traffic to be as big as the current #4, which is United. With all due respect to YQL and communities like it, let's be realistic here.

While I think the way the article was written is unrealistic and gives people a false sense of size, keep in mind trans-border numbers for Canada-U.S. flights count as international.

Quoting cbc:
Durfy said the carrier is also sees huge potential in the expansion of WestJet vacations, bundling air travel with hotel rooms and car rentals. A key destination for bundled vacations is Las Vegas, where WestJet is the largest seat provider from Canada.
"There are tremendous margins in the hotel business, which is still very fragmented," he said. "And if we can bundle insurance (for travel or vehicle rental), the margins on insurance are fabulous."

WS is merely becoming a trans-border version of WN and focusing on a top vacation spot for people to go off and spend a shorter vacation at. But as I eluded to above WS is also working the charters during the winter, and also finding new scheduled destinations at prices the charters even have to keep their eyes on:

Quoting cbc:
WestJet, which has been lauded as a Western Canadian success story over its 11 years, recently added flights into the Bahamas which Durfy says have been very profitable.
"The other guy was flying there for $1,200 return and we flew there for $550 to $600 and we had great load factors and we made wonderful margins," he said, adding that WestJet executives see many more potential international opportunities.
"We haven't even tapped the market," he said.

Perhaps we'll see a few WS 737s in other Caribbean hot-spots for the winter Canadian crowd in the next few years, such as SXM, PUJ or POP amongst others. While I don't expect them to be as big as the article makes it sound, lets give WS credit where it is due as they attempt to cash in on the travel habits of Canadians that AC must learn to compete with.



DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
User currently offlinePacifica From Canada, joined May 2006, 149 posts, RR: 0
Reply 13, posted (7 years 6 months 1 week 5 days 14 hours ago) and read 9567 times:

I'm pretty sure by top five Sean Durfy means not size-wise, but just in terms of quality and satisfaction. It's the only real explanation that makes sense.

Just my two cents.


User currently offlineSebring From Canada, joined Jul 2004, 1666 posts, RR: 14
Reply 14, posted (7 years 6 months 1 week 5 days 14 hours ago) and read 9549 times:

The Calgary Herald, Westjet's home town paper, in its coverage of the same speech, described the goal as being among the top 5 most profitable airlines. Not a top 5 by other measures.

And it defined international primarily as flights within five hours of Canada, i.e. Mexico, Caribbean, US primarily.

Westjet's stock fell rought 2.5% today (off 40 cents), on fairly active trading, and that might be indicative of some nervousness among investors about that statement. Or maybe not.

In any case, Durfy is giving a presentation at the Merrill Lynch Transportation conference today, and you might expect him to clarify his remarks.


User currently offlineSwissy From Switzerland, joined Jan 2005, 1734 posts, RR: 4
Reply 15, posted (7 years 6 months 1 week 5 days 13 hours ago) and read 9463 times:

Quoting Pacifica (Reply 13):
I'm pretty sure by top five Sean Durfy means not size-wise, but just in terms of quality and satisfaction. It's the only real explanation that makes sense.

Agree, always read between the lines

Quoting Sebring (Reply 14):
Westjet's stock fell rought 2.5% today (off 40 cents), on fairly active trading, and that might be indicative of some nervousness among investors about that statement. Or maybe not.

Here lies the problem, I am an investor and I look at future growth of WS with their 737s...... a side from a few US destinations the rest has failed (USA only), how much more can you get out of Canada......., sure WS Vacations has great potential......... or in short without any WBs WS is very limited in growth and so far I have only seen hot air blown out by CB & SD........., so take your business plan and use the WBs you need and conquer the world.

Cheers,

[Edited 2007-06-13 00:53:47]

User currently offlineTravelin man From United States of America, joined Mar 2000, 3556 posts, RR: 0
Reply 16, posted (7 years 6 months 1 week 5 days 11 hours ago) and read 9288 times:

Maybe he meant "top 5" int'l Canadian carriers????

User currently offlineFLYACYYZ From Canada, joined Jan 2004, 1914 posts, RR: 11
Reply 17, posted (7 years 6 months 1 week 5 days 11 hours ago) and read 9259 times:

Emirates, Singapore, Qatar, Cathay Pacific & others...take note !!  Confused


Above and Beyond
User currently offlinePacifica From Canada, joined May 2006, 149 posts, RR: 0
Reply 18, posted (7 years 6 months 1 week 5 days 11 hours ago) and read 9251 times:

Quoting Travelin man (Reply 16):
Maybe he meant "top 5" int'l Canadian carriers????

Haha I think they already own that title by default.:D

After all, how many big Canadian airlines actually fly internationally? (AC, TS, Zoom, Skyservice, and WS)


User currently offlineTravelin man From United States of America, joined Mar 2000, 3556 posts, RR: 0
Reply 19, posted (7 years 6 months 1 week 5 days 11 hours ago) and read 9241 times:

Quoting Pacifica (Reply 18):
Haha I think they already own that title by default.:D

After all, how many big Canadian airlines actually fly internationally? (AC, TS, Zoom, Skyservice, and WS)

Then I guess they reached their goal early?  Wink


User currently offlineNoise From United States of America, joined Dec 1999, 1855 posts, RR: 4
Reply 20, posted (7 years 6 months 1 week 5 days 9 hours ago) and read 9113 times:

Shouldn't WJ exhaust all potential markets in Canada (YQB, YQG, YQL, YSB, YKA) before moving more international?

[Edited 2007-06-13 05:04:44]

User currently offlineKLM11 From United States of America, joined Dec 2003, 182 posts, RR: 1
Reply 21, posted (7 years 6 months 1 week 5 days 8 hours ago) and read 8826 times:

I'd love to see WS YYJ-California routings. Considering that YYJ is the little Silicon Valley of the north, it might not be a half bad idea. I know its a bit of a long shot, but what the hell!  Wink

--KLM11



BENAIRE - The Refined Airline
User currently offlineCarpethead From Japan, joined Aug 2004, 2977 posts, RR: 3
Reply 22, posted (7 years 6 months 1 week 5 days 8 hours ago) and read 8810 times:

Cool! Looking forward to a WS widebody in NRT, NGO & KIX by 2016.  Smile

User currently offlineYULYMX From Canada, joined May 2006, 977 posts, RR: 1
Reply 23, posted (7 years 6 months 1 week 5 days 8 hours ago) and read 8791 times:

They will have to find new aircraft... B767 to start or A330 to go international... YHZ, YQB, YUL would be a nice platforms to hit Europe Market... From Yul they could offer what AC doesn't AMS, GVA, BRU, MAD, LIS, BDA, LGW... just a though but they need planes others than B737.. they could use there YYC and YYZ hub to connect to a few wide body a la Zoom Airlines and fly to Europe, i dont see Asia anytime soon

my 2 cents


User currently offlineFalcon7x From Canada, joined Mar 2007, 89 posts, RR: 0
Reply 24, posted (7 years 6 months 1 week 5 days 7 hours ago) and read 8413 times:

Can anyone say 787's???

25 Flyboyseven : There was a thread on that a while ago and i think it was decided that WS had talked to boeing on the matter
26 Impacto : I would love to see this happen, but lets be realistic, it will be very unlikely. AC has one the lousiest International service when compared to other
27 Burkhard : Maybe he wanted to say that Westjet, subjet to growth, will be the number 5 in international traffic to Canada, behind AC,UA,DAL and maybe COA - that
28 Swissy : And include the T7............. I have been saying it for a long time WS will have to spread the wings, look at their "domestic/north american" netwo
29 DAYflyer : I think this is more interesting: The Vancouver Sun/CP writes that WestJet "has been lauded as a Western Canadian success story over its 11 years." Bu
30 Post contains images Brilondon : Since this was a speech to investors I am certain he was alluding to profit margins, and other financial goals investors would like to hear.
31 Drgmobile : he Calgary Herald, Westjet's home town paper, in its coverage of the same speech, described the goal as being among the top 5 most profitable airlines
32 BeechNut : In other words within the non-stop range of a 737NG. This would make sense. If they go "intercontinental" in addition to "international", this means
33 YOW : You can already see WS aircraft in SXM, PUJ and POP during the wintertime with the TS partnership. WS cannot offer int'l sun flights to places where
34 Drgmobile : In his Merrill Lynch presentation, Sean Durfy doesn't directly reference the top five comment, but his comments suggest he probably was referring to p
35 Yyz717 : Despite all the anti-WS commentary, it's reasonable that WS could commence int'l service with a small fleet of 788's early in the new decade. By that
36 Falcon7x : I can remeber hearing for sometime that the 787 is a logical choice if Westjet were to enter the long-haul market.Its simply a matter of time before t
37 9252fly : It's inevitable that WS will have to continue to find ways to grow,that's what supports their share price and satisfies the expectations of it's share
38 VonRichtofen : The story I read here in Calgary quoted WS as saying they wanted to expand their US, Mexico, Carribbean flights and that overseas flights to Europe an
39 Post contains images Swissy : And that is why their stock is where it is...................... for to long................... and if majority of WS stock would be public owned (no
40 YOW : WS have room for at least 25 more airplanes in the domestic market over the next 4-5 years. In addition to increased frequencies on existing routes,
41 YOW : I'd probably also add YMM-YYZ and maybe even YMM-YVR to the above list. After 40% growth last year, YMM's growth continues again at 40% this year.
42 Chock Head : You realize that this makes no sense and shows how little you know about the stock market? All of the WS stock is public whether owned by employees o
43 YOW : YOW-YQT-YYC is another domestic route that could be added.[Edited 2007-06-15 19:22:41]
44 Post contains images Bmacleod : Going international would be a hard-fought battle against AC; Does WS has a risk capital piggybank big enough to mount such a challenge???   [Edited
45 9252fly : I'll suggest that outside of Canada,WS will have to compete against more than just AC. I don't know if they will be able to play the "David versus Go
46 Post contains links and images WestJetYQQ : Maybe these would be a good start for expansion? Westjet Looking At IAH, DFW And ORD (by Thomasphoto60 Jun 15 2007 in Civil Aviation) In terms of size
47 Brilondon : their stock price is determined on the open market by what the investors perceive it to be worth and are willing to pay for it not by how much stock
48 Swissy : That is were I disagree 100%, who is the majority group holder of these "public stocks"? why are there so many restrictions for employees to get rid
49 YOW : One thing that contributes to keeping the price in that range is the constant issuing of new share to WS employees. Also WS, issue stock splits whene
50 Threepoint : As soon as these destinations offer the revenue that WS seeks, you can bet they'll put their first available airplanes in there. Good luck securing s
51 ZBBYLW : HAHAHA, good catch. AC will never even think about giving up slots at LHR. I know a few people on here believe WS should be given some of AC's slots
52 CYLW : Never been to Canada eh? Thats a pretty ignorant statement to make. But, I guess thats what a Lederhosen-wearing, beer-swilling, sausage-eating perso
53 RP TPA : I think you'd have a better chance seeing Iranian leader Ahmadinajad accepting an invitation to a Passover seder.
54 Boeingluvr : "Never been to Canada eh? Thats a pretty ignorant statement to make. But, I guess thats what a Lederhosen-wearing, beer-swilling, sausage-eating perso
55 Threepoint : Your opinion is simply that - one opinion in a country full of flying public that may or may not agree with you. I'm not an AC devotee, but do prefer
56 CYLW : I was only referring to his statement that Canada is "a snowy desert with a few middles of nowhere ". I agree that there is no way that any airline f
57 Boeingluvr : "Your opinion is simply that - one opinion in a country full of flying public that may or may not agree with you. I'm not an AC devotee, but do prefer
58 Robsawatsky : The personal profits of individual exec's/employees and stock price aren't necessarily related to bottom-line corporate profitability. Westjet has do
59 Boeingluvr : Well let's not forget that their shareprice has jumped almost 2 times what it was less than a year ago, and with the Canadian market commitment that t
60 YOW : AC was fully privatized in 1989. Where are these gov't handouts? The feds still abuse Air Canada with the Air Canada Act. There is no WestJet Act tha
61 9252fly : You really need to add specifics of government handouts when making a statement such as this. A lot of people will take exception with your view. AC
62 Post contains links Boeingluvr : Here is a few related topics that I found that touch on the subject. http://www.fin.gc.ca/news04/04-037e.html http://press.arrivenet.com/travel/articl
63 YOW : I highly doubt AC's YYC-LHR loads are suffering much due to BA. YYC's int'l traffic is up 25% YTD. I most of that is undoubtedly a result of the new
64 Chock head : The facts do not back up you statement about WS starting to plateau and is a mistaken generality by someone who does not know what they are talking a
65 Post contains images Swissy : Perhaps, relax and for sure it is a good thing "you" know it all............. Would be nice at least give us the brake down....... Thanks for the lin
66 ACDC8 : Just a thought, but perhaps Durfy meant that they would be a top airli Can you back that up? You're personal opinion.
67 Threepoint : Thanks Chockie, Compared to the rocketlike growth immediately following inception, WS is certainly starting to plateau in terms of destinations, flee
68 YOW : That would be an interesting statement considering they don't fly between Comox and Prince George. The thing is % increases will naturally slow down
69 Flyb : So current hubs in order of size are: YYC YYZ YEG YVR I assume if they want to achieve this goal WS will continue to expand these hubs, but strengthen
70 Robsawatsky : " target=_blank>http://findarticles.com/p/articles/m...96878 None of which relate in any way to government handouts. These are all related to AC's res
71 YOW : YWG is fifth. This ordering shows compared to the ranking of the top 8 airports in Canada, WS isn't exactly following the order top 8's, which provid
72 CRJ 900 : WOW so much for keeping with the original business plan eh? Well eventually, they'll have a business cabin, the employees will be "organized" and the
73 Boeingluvr : "Quoting Boeingluvr (Reply 62): BA is starting to take a lot of their business to LHR from YYC with their new route. Can you back that up?" I have bee
74 Post contains images Swissy : I believe you....... and I can understand...... Which is because JetsGo, CanJet and Harmony gave up....... or had no choice other than stop operating
75 YOW : Definitely. However, if CanJet hadn't tried to be WestJet East (i.e. obsessing over YYZ), they'd still be flying sked services today.
76 HanginOut : AC should be commended on thinking outside the box and trying to hit all market segments from appealing to low cost flyers to the high end business c
77 Boeingluvr : "As for WS, I would see them going international to Europe once an open skies agreement is reached between Canada and the EU. While some may argue tha
78 Drgmobile : As for WS, I would see them going international to Europe once an open skies agreement is reached between Canada and the EU. Europe and Asia for WestJ
79 Boeingluvr : That's right off his speach too. Great thing though. I was in UK not long ago and heard BA agents talking about WS. Thought it was great how our Priva
80 Post contains images Swissy : Yep agree, I used them all the time to get to YOW from YHM, however I switched to Jazz once they came in to YHM as try to avoid YYZ as much as I can.
81 Boeingluvr : Lots of potential from WS for sure! They could even fly into MAN as well if they go intl. Any speculation as to where they would go if Asia was decide
82 Boeingluvr : Also on another not regarding profits. Reading the newspaper in my local city earlier this year, they had an article on WS being the largest profiting
83 WestJetYQQ : I can not see WS entering the Asia market at any time, but I've been wrong before. If I had to guess, it would be a fairly typical group of destinati
84 Boeingluvr : WS has looked at the ERJ's before and I think will probably stay away from CRJ's as well. Less money to have a fleet of all one A/C for training purpo
85 Falcon7x : I firmly believe the 787 will be in WestJet colors soon enough.Anyone want to demonstrate what that would look like?
86 TruemanQLD : Unless all the other airlines in the world 'somehow' went bankrupt, this will never happen
87 Boeingluvr : Explain TruemanQLD...?
88 YOW : Nice sentiment, except WS haven't been a private company since 1999.
89 Boeingluvr : That's true... Not completely no. Any other opinions on WJ future?
90 Robsawatsky : "Never" is a very long time. Maybe in the next economic downturn AC will again file for bankruptcy protection and Westjet will do a leveraged buyout/
91 Boeingluvr : That could very well be the case.
92 Post contains images WestJetYQQ : It's WS! Sorry but that drives me crazy! That would be pretty cool. Then I could fly for WestJet AND fly AC's 777s
93 Boeingluvr : Haha you can take the 777's. I'll take the 78's !
94 Boeingluvr : Anymore opinions from anyone?
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