WestJet is plotting a course to become a bigger player on a
global scale over the next few years, including a major fleet expansion and a
commercial joint venture with Delta.
The carrier expects to nearly double its fleet of wholly
owned aircraft by 2020, growing from the 51 it had at the end of the third
quarter to 96. That includes 10 Boeing 787-9 Dreamliner aircraft, the first of
which it will receive in January 2019.
Under the JV with Delta, which was announced Wednesday and is
pending regulatory approvals, the carriers will coordinate schedules, expand
codesharing and deepen reciprocal benefits for frequent-flyers. The carriers began
codesharing in 2012, and the deeper relationship will "bring
heightened competition and an enriched product offering to the transborder
segment," according to WestJet EVP of commercial Ed Sims.
WestJet codeshares with several other carriers, including
many outside Delta's SkyTeam family, such as American Airlines, Latam, Japan
Airlines and Emirates. American recently filed to terminate that codeshare
relationship, but all other codeshare and interline partnerships will remain, a
WestJet spokesperson said.
The carrier has been working to grow
its corporate business share through its Premium Economy product, which competes
with chief rival Air Canada's highest economy fares. WestJet projects premium
travel will add between $300 million and $500 million to its revenue annually
through 2022. In addition, WestJet plans
to launch an ultra-low-cost-carrier, Swoop, next summer. It will operate as
a separate airline on its own routes and reservations system.
All those investments "support our transition from a
low-cost, point-to-point model into a high-value-based network airline with a
global footprint," WestJet president and CEO Gregg Saretsky said. "We
have been laying the foundation for this transition by investing in our network
and schedule, while deepening our airline partnerships and broadening our fare
products to not only defend and grow our leisure business but also to attract
and retain premium travelers."