In the latest round of skirmishes between Canada's largest airlines, Air Canada has scored the most points, but the long-term trend still favours WestJet.
Air Canada is the clear victor in a recent battle for gates at Toronto's Pearson airport. An appeals court dismissed one claim and the airport settled another, leaving Air Canada in control of all gates in the new Terminal 1 and some gates in Terminal 2. In both cases Air Canada had asserted it was entitled to these gates under an earlier lease agreement. It prevailed in the first action and the airport relented in the second. WestJet, which planned to launch its big Toronto expansion from Terminal 1, has been relegated to Terminal 3. Clive Beddoe, WestJet's chief executive, claims Air Canada has sought to control the gates to stymie WestJet's growth.
Air Canada has also put WestJet on the defensive with a multi-million dollar claim of corporate espionage. Air Canada alleges WestJet regularly used the user name and password of a former Air Canada employee to access a website that contains sensitive data about routes and traffic. It claims that WestJet used this to target its own expansion. WestJet has not yet answered the complaint, but has placed two employees on leave and did not oppose a preliminary injunction.
Despite these clashes, WestJet continues to grow, and has added a loyalty programme that allows Bank of Montreal credit card holders to redeem points on WestJet flights. Latest figures show Air Canada's market share having slipped below 60% while WestJet's rose to 29%.
Source: Airline Business
