Air Canada is being further threatened by WestJet's unrelenting push into its traditional eastern Canada stronghold.
With nine more aircraft coming this year, WestJet expects a 50% growth in capacity. Halifax, Nova Scotia, was its first new destination this year followed by Windsor, Ontario. Mid-April will bring it into Montreal, Air Canada's headquarters, followed by flights to Newfoundland. "They are creating a nationwide network," says one observer.
Robert Milton, Air Canada's chief executive, sees no way to match WestJet's juggernaut except to remake Air Canada. Labour concessions and non-core asset sales are his present goals. "The next step," Milton says, "is to transform Air Canada into a low-cost carrier in its own right." Fadi Chamoun, analyst with UBS Warburg, warns that "Air Canada doesn't have a lot of time".
Source: Airline Business
