WestJet introduces premium economy

[Donald]

http://www.edmontonjournal.com/travel/W ... story.html

WestJet will offer its passengers more leg room - at an additional cost - with the introduction of new premium economy seating.

The new seating plan - which will also come with priority boarding and complimentary on-board amenities - was revealed Wednesday by CEO Gregg Saretsky during a conference call with analysts.

Starting this month, the Calgary-based carrier will reconfigure its entire fleet of Boeing 737s, adding four new rows of premium seating with 36 inches of "pitch" (an industry term describing the distance from seatback to seatback in an aircraft).

The change will result in a little less space in some other seats as the pitch for regular economy fares is standardized to 31 or 32 inches, "well within North American standards," Saretsky said. On some of the airline's planes, such as the 800-series, the average pitch is now 34 inches.

"I don't expect our guests to feel any impact from that reconfiguration, but we'll certainly see the revenue benefits," he said.

Tightening up the seat space will allow the airline to add eight extra seats on its 800series aircraft, and passengers will still have the same amount of legroom as they currently have on a 600 or 700-series plane, Saretsky said.

David Newhan, an analyst with Cormark Securities Inc., said the move makes sense for WestJet, which will have more seats overall by the time the project is complete. WestJet has indicated all of its planes will be reconfigured by December and pricing will be announced later this year.

"From a capacity point of view, they're going to be getting more revenue out of the cabins," Newman said, adding the move also helps WestJet appeal to a corporate clientele. "I think it's something that's demanded by their business customers. They've had to respond to that market, or they're going to give up a revenue opportunity."

WestJet has had a single, economy-class cabin since it was founded in 1996. WestJet spokesperson Jennifer Sanford said the airline is introducing a new seating product, not a new class of service.

'We will continue to appeal to families and leisure travellers while recognizing that there are many business travellers looking to fly with WestJet who are looking for a few more features and amenities," Sanford said. 'We believe this new product will appeal to upscale leisure travelers too."

Gayle White, owner of Sundial Travel in Calgary, said the move will bring WestJet in line with most charter air services, which already offer premium seats with extra legroom. However, White said she thinks the company is trying so hard to attract business travellers that it's losing its grip on its niche market.

"WestJet has fallen away from their low-cost carrier (reputation) for a number of years. They're playing the Air Canada game, rather than playing their own game," White said.

Also on Wednesday, WestJet announced a second quarter net earnings record of $42.5 million, or $0.31 per diluted share, up from the previous second quarter earnings record of $25.6 million set in 2011. Revenue was up nine per cent from the same time last year, rising to $809.3 million from $742.3 million. The airline also declared an increase to its quarterly dividend from six cents to eight cents a share.

Saretsky said the company remains on track for the launch of its new regional airline in the second half of 2013. The airline will compete with Air Canada in the country's smaller markets.

The airline has orders for 20 of Bombardier's Q400 NextGen turboprop aircraft, with seven to be delivered in 2013 and the remainder to be delivered in stages through 2016. WestJet also has options to buy up to 25 additional Q400 aircraft. Saretsky said WestJet has begun to fill the first of 1,800 new jobs for the new regional service and that some destinations should be announced in early 2013. Shares in WestJet closed down 59 cents, or 3.6 per cent, to $15.99 in Wednesday trading on the Toronto Stock Exchange.

[slowstream]

Well good for them, I am certain it will prove to a success for them.

But my gripe here is the twisting of words and definitions. Westjet is not the first to offer premium economy seating but they might be the first low cost carrier to do so, I 'm not sure. But if walks like a duck, quak s like a duck its a freaking duck people! Its the start of a two class cabin, one where people pay more for more room, for better amenities etc. It means more profit for the airline and as history has proven it is the most profitable portion! So how do you define yourself as a low-cost airline?

I guess, bottom line is they can call themselves whatever they want, define themselves as whatever they want. Like I said they will probably be very successful with it and I do wish them well with it. But I hate it when companies try to peddle B.S! Its there start of a two class cabin and airline.

Sorry for the irrelevant rant and Good luck Westjet

[unregistered]

WestJet has never truly been a low cost carrier.

[Taiser]

Was/am a fan of WestJet until Porter came out, now Porter, I find to be the best, at least in the areas they travel to., In other areas that Porter doesn't go, I still use WJ. Not sure if I'm going to like this new model, the seats are pretty tight as it is but I absolutely refuse to fly on AC unless I have to for work...I've had a crap load of problems with AC over the years.

[co-joe]

So now if all the regular class seats are sold out do I have to pay more for the first class seat? If so I can't help but think load factors will go down slightly. Time will tell

[shamrock104]

Westjet has never been a "low cost carrier", this is very true. I am glad we are making comparisions here. When we look at the big picture we only have two big carriers on the scene right now Westjet and Air Canada. Westjet have always emerged as the "golden child" for several reasons. Air Canada and its name have been tarnished for years, well before Westjet even existed. Lets look back at Canadian and Wardair, both I am sure were more popular than Air Canada. So with just two players of course Westjet are going to win the "image battle". I regularly travel both and I have my gripes with both but look at their fares and you will find them comparable.
Westjet have done well and thats really a good thing but at the end of the day they are constantly compared to their rival. I dont favour one over the other anymore but what each has got to remember is at the end of the day theres probably another out there on the horizon that will step in and exceed their levels of service and popularity.

[kiteboy]

I hope WJ's profits spur a new startup LCC, we defo need one to lower the prices in Canada! It's shameful to see the prices soar on non-competitive sectors! Even if it only lasts a few years at least it 'resets' the fares!! Obviously the 2 carriers in Canada are not really competitive across the board!
WJ was defo closer to a LCC back in the Jetsgo/Canjet/C3/Royal days!

[BEFAN5]

[quote="=we defo need one to lower the prices in Canada! [/quote]
All in the for the race to the bottom!

I defiantly favour AC when it comes to traveling. With the exception of Jazz, I fit in their airlines quite a bit better. I already find Westjet snug and stiff. Comfort level on AC aircraft is A+.

[harrypurcell]

I am a fan of WestJet until Porter came out, now Porter, I find out out to be the best, at least in the locations they trip to., In other locations that Porter doesn't go, I still use WJ. Not sure if I'm going to like this new style, the seats are quite restricted as it is but I definitely do not fly on AC unless I have to for execute...I've had a dangerous complete of problems with AC over the years.

[Beefitarian]

One problem I've had with AirCanada was unexpectedly riding in a CRJ on AC flight xxx operated by United from Chicago to Calgary or Toronto to Chicago. I basically forced my admittedly oversized body into the very uncomfortable seat.

I wonder if the reduced spacing on the 737s are intended to more closely match the up comming Q800 configuration so you don't get in them and feel like it's tight compared to what you'd usually get.

We rode in the Alaskan air Q800 units and they were pretty decent possibly a bit tighter than WJ.

[shamrock104]

Same thing, I am a bigger guy so will choose Air Canada over WJ on a run to Hawaii and for trips out East.

[Donald]

http://thechronicleherald.ca/business/1 ... nomy-seats

“I don’t expect our guests to feel any impact from that reconfiguration, but we’ll certainly see the revenue benefit,” president and CEO Gregg Saretsky told analysts on Wednesday.

However, the number of lower-cost seats available on each flight is going down, Saretsky said after WestJet announced a second-quarter profit of $42.5 million and raised its dividend.

The seat change would appeal to WestJet’s business class to compete with Air Canada for business travellers. The new class bridges a gap in ticket prices between economy and first-class, which are too costly for many travellers.

“We don’t have any concern about seats going empty,” Saretsky said.

[complexintentions]

Was/am a fan of WestJet until Porter came out, now Porter, I find to be the best, at least in the areas they travel to., In other areas that Porter doesn't go, I still use WJ. Not sure if I'm going to like this new model, the seats are pretty tight as it is but I absolutely refuse to fly on AC unless I have to for work...I've had a crap load of problems with AC over the years.

I am a fan of WestJet until Porter came out, now Porter, I find out out to be the best, at least in the locations they trip to., In other locations that Porter doesn't go, I still use WJ. Not sure if I'm going to like this new style, the seats are quite restricted as it is but I definitely do not fly on AC unless I have to for execute...I've had a dangerous complete of problems with AC over the years.

Hmmm is it just me, or does "Taiser" sound a lot like "harrypurcell"?!

"Astroturfing" def: the act of trying to boost one's image online with fake comments, paid-for reviews, made-up claims and testimonials.

Try harder, please.

[Heliian]

If you stay focused on the whole ac/westjet debate, you won't realize how crap air travel is in the entire north america. My favourite airline in Canada is in fact Air Inuit, clean a/c, good service and my excess baggage fees are about a third of the big two.

[Taiser]

Was/am a fan of WestJet until Porter came out, now Porter, I find to be the best, at least in the areas they travel to., In other areas that Porter doesn't go, I still use WJ. Not sure if I'm going to like this new model, the seats are pretty tight as it is but I absolutely refuse to fly on AC unless I have to for work...I've had a crap load of problems with AC over the years.

I am a fan of WestJet until Porter came out, now Porter, I find out out to be the best, at least in the locations they trip to., In other locations that Porter doesn't go, I still use WJ. Not sure if I'm going to like this new style, the seats are quite restricted as it is but I definitely do not fly on AC unless I have to for execute...I've had a dangerous complete of problems with AC over the years.

Hmmm is it just me, or does "Taiser" sound a lot like "harrypurcell"?!

"Astroturfing" def: the act of trying to boost one's image online with fake comments, paid-for reviews, made-up claims and testimonials.

Try harder, please.

Sorry, he might sound like me but he's not...don't know what his deal is...

How can you boost your "image" with a different user name? Better re-read that definition or have someone explain it to you...