Quote:
Originally Posted by Wormius
Would Westjet no longer be profitable if they returned to their prices and quality of service from the late 90s/early 2000s?
I think we all want to love Westjet, but they've become greedy. Why do they have to follow other airlines leads and start charging for extra bags, charging for seat selection, making the flights more cramped, etc.
I truly don't get it. Why does it matter if AC can get away with charging more or nickel and diming customers, and I don't see how it puts Westjet at a disadvantage not to.
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This is just one semi-uninformed opinion, but as an airline matures the costs start to creep up, and the battle then becomes trying to keep costs in check. Then the battle lines are drawn when the eventual disagreement occurs about how to keep costs in check.
The US is a good example of it. Especially the US regionals. New airlines are formed, they are new and cheap, but as they mature, costs, salaries and benefits go up and reach a point where they are unsustainable and then the big mergers happen or bankruptcies. Those merged airlines costs eventually creep up until they reach a breaking point, things get ugly and then the previously merged airlines fracture into brand new smaller companies that start fresh, new and somewhat sustainable. Then the cycle continues. Thats an oversimplification, but pretty much the jist.
Not saying that that is what is happening at Westjet. I think the CEO said at one point that they have to keep their "CASM" below a certain point or else their whole model isn't sustainable. I think they are starting to see some real pressure on that CASM value.
To Westjet's credit I think the people there are quite forward thinking and will do their best to keep the interests of the company, employees and customers at the forefront. But its not going to be easy.