“I believe WestJet has performed too many issues, tried to be too many issues to too many individuals, and we have to concentrate on these areas that made WestJet robust within the first place,” stated CEO Alexis von Hoensbroech.
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Alexis von Hoensbroech’s first 10 and a half months as WestJet’s CEO laid the groundwork for change – 2023 is about seeing his plan in motion.
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The brand new course is extra of a course correction, an effort to take the Calgary-based airline again to its roots in a world rising from two years of pandemic restrictions and lockdowns.
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Which means extra centralization in Western Canada as you search for methods to make flying extra reasonably priced and enhance the product.
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“2023 would be the yr the place we do a whole lot of the implementation of the technique,” he stated. “In the event you take a look at an airport like Calgary, we’ll see over 25 % development from 2022 to ’23. In order that’s a whole lot of further capability and it’ll include a whole lot of further routes.”
Von Hoensbroech was named CEO on December 17, 2021 and landed in Calgary to formally take over the place in mid-February.
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He was thought of a rising star on the Lufthansa group, having beforehand served for 3 years as CEO of Austrian Airways, that nation’s largest airline pre-pandemic as a low-cost possibility with a big footprint in Central – and Japanese Europe.
Return to pre-pandemic ranges
Challenges stay because the airline trade continues to get better from restrictions and well being orders throughout two years of COVID-19. WestJet was the one main Canadian airline to not obtain pandemic-related federal authorities support, as a substitute taking up lots of of tens of millions of {dollars} in losses and debt.
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“I believe WestJet has performed too many issues, tried to be too many issues to too many individuals, and we have to concentrate on these areas that made WestJet robust within the first place,” von Hoensbroech stated.
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For 2022, the airline is working at 78 % of pre-pandemic ranges, with federal restrictions on flying and cross-border journey nonetheless in place till Oct. 1. In December, the airline was working at 90 % of pre-pandemic ranges — averaging about 600 flights a day with 65,000 visitors — and predicts a return to 2019 numbers by the second or third quarter of 2023.
That was earlier than excessive climate wreaked havoc on the airline trade in the course of the vacation season. Between December 18 and December 26, 1,450 flights have been canceled by WestJet attributable to winter storms throughout the nation, affecting 1000’s of vacationers. Simply on December 23, 333 flights have been grounded.
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WestJet has granted slots for direct Calgary-Dubai flights, however the airline says no choices have been made
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WestJet goals to double capability in Calgary by partnership with provincial authorities
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WestJet technique shifts focus to Western Canada with extra routes, connections
The primary main announcement von Hoensbroech made after taking over his put up was to announce a takeover of vacation vacation spot airline Sunwing, primarily based out of Toronto. In October, the federal competitors bureau raised issues in regards to the merger and the deal stays within the regulatory course of with a last determination not anticipated till the brand new yr.
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The acquisition will strengthen WestJet’s place within the photo voltaic journey sector, with Sunwing proudly owning 45 lodges in locations throughout Mexico and the Caribbean.
Competitors is rising as new airways begin up
Competitors, particularly in Western Canada, has solely elevated for WestJet this yr.
Edmonton-based Aptitude Airways labored to increase its footprint whereas Lynx Air launched in Calgary in April, Jetlines launched from Toronto in September, and Porter Airways started increasing its community west of Toronto with new routes to Calgary and different locations. Pre-pandemic there have been solely two airways flying Toronto-to-Vancouver, and by subsequent summer season there shall be 5 or 6.
The competitors has largely overcrowded the low-cost market that WestJet targets.
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“On the finish of the day, I do not actually care what they do. What I care about is what we do, and we do what we have at all times been good at, which is relentlessly on value,” says von Hoensbroech, which he provides will result in decrease ticket costs.
New imaginative and prescient, routes introduced
In June, the brand new CEO unveiled his imaginative and prescient for WestJet.
The airline canceled all orders for 787 Dreamliners, leaving its wide-body fleet at seven, whereas saying a concentrate on narrow-body planes. WestJet has since elevated its 737 Max buy order from Boeing from 23 to 65.
By making this hub, WestJet made Calgary Worldwide Airport its hub for Dreamliners, whereas relaunching routes to London, Paris and different European locations.
In December, new routes to Edinburgh and Barcelona have been introduced. The airline additionally unveiled its first foray into Asia with a direct flight to Tokyo. Von Hoensbroech stated the corporate will proceed to observe demand for brand new locations.
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The technique additionally outlined a restructuring of regional service, notably in Western Canada with its fleet of De Haviland Sprint 8s.
Environmental sustainability a focus
In the meantime, WestJet will proceed to work for environmental sustainability within the new yr. The brand new 737 Max planes on order are extra environment friendly than most planes within the section, and the airline launched a biofuel pilot venture this fall for its San Francisco-to-Calgary route.
“Sustainability and emission discount is without doubt one of the largest challenges dealing with our society, and we as an aviation trade should do our half to assist assist it,” stated the CEO.
It hasn’t been all wins for WestJet in 2022.
A cooling drawback with the corporate’s servers brought about a system-wide outage in November, resulting in the cancellation of lots of of flights and leaving 1000’s of passengers stranded.
Von Hoensbroech known as it an costly lesson and stated that they had “doubled down” on focusing on deficiencies within the IT system to stop an analogous state of affairs.
“That is what we owe to our visitors,” he stated. “Relating to the resiliency of our inside setup like our IT system, it is our duty to our visitors that we repair that – and we’re fixing it.”
jaldrich@postmedia.com
Twitter: @JoshAldrich03
