Dash8King
Topic Author
Posts: 2657
Joined: Wed Nov 21, 2001 8:45 am

Westjet's Profit Up 76%

Fri Nov 01, 2002 4:18 am

Here is a report from Robtv.com

http://www.globeinvestor.com/servlet/WireFeedRedirect?cf=GlobeInvestor/config&vg=BigAdVariableGenerator&date=20021031&archive=ccn&slug=Z0126

Congratulations Westjet! Although ASM's are up like 50% and the loadfactor went down to 80% from 81% this is still great news. I think they might take a beating from Zip in the 4th though.
 
captaingomes
Posts: 6251
Joined: Tue Feb 13, 2001 1:33 am

RE: Westjet's Profit Up 76%

Fri Nov 01, 2002 7:22 am

Dash8king, I have a feeling Westjet will hardly feel the effect of Zip. If anything, I think Air Canada will hurt more from Zip than Westjet. Expect the numbers to be down for the 4th quarter though, but I highly doubt they will be far off 4th quarter last year.

I wonder how Zip's loads are doing so far?
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
 
JU101
Posts: 831
Joined: Sun Mar 25, 2001 1:57 am

RE: Westjet's Profit Up 76%

Fri Nov 01, 2002 9:37 am

This is truely great news, and lets hope Westjet becomes a strong competitor for Air Canada. Has the introduction of Westjet flights to Pearson airport made a positive impact on the airline? From what i can see, YYZ is the real stepping stone for the market in southern Ontario.
 
Dash8King
Topic Author
Posts: 2657
Joined: Wed Nov 21, 2001 8:45 am

RE: Westjet's Profit Up 76%

Fri Nov 01, 2002 11:12 am

Well Tango is a success so I don't see why Zip won't be and they are direct competition to Westjet. Yes I think 4th quarter will be down. I think AC should have to provide financial info on it's subsidaries.
 
captaingomes
Posts: 6251
Joined: Tue Feb 13, 2001 1:33 am

RE: Westjet's Profit Up 76%

Fri Nov 01, 2002 1:11 pm

If AC had to provide financial info on their subsidiaries, it would tell a very interesting tale. I still wonder if Tango and Zip will help or hinder the bottom line at AC. They are really taking flights away from the mainline with a high cost structure compared to Westjet and Jetsgo. If we had all the info, maybe we would see that Tango is not as good a thing as management leads you to believe.

Will AC have to provide separate financial info for Zip though? From my understanding, it's a separate company, unlike Tango, so maybe AC will have to provide separate financial info for Zip. We'll see in time I suppose.
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
 
Dash8King
Topic Author
Posts: 2657
Joined: Wed Nov 21, 2001 8:45 am

RE: Westjet's Profit Up 76%

Fri Nov 01, 2002 11:42 pm

Well AC's loadfactor is like 86% so Tango couldn't be to bad, I agree however that it takes passengers away from mainline though. If it weren't a success then I believe they would have dropped it by now.
 
Guest

RE: Westjet's Profit Up 76%

Sat Nov 02, 2002 12:14 am

Westjet will do just fine as long as it continues to be well-managed and maintains its corporate culture.

It has established itself as the market leader among discount carriers. Market leaders are rarely defeated by imitators unless they:

(a.) Throw caution to the winds and get themselves into a sticky situation (e.g., People Express)

(b.) Get complacent and fall too far behind the rest of the industry (e.g., Eaton's)

In any case, it's good news for the industry.

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