Target audience for WestJet’s Swoop

WestJet Airlines Inc. plans to target millennials, young families and frugal travellers for its discount carrier Swoop which launches service next summer.

The Calgary-based airline said it expects to offer fares that are about half the level of the mainline carrier, but come with hefty extra fees for bags and other ancillary services.

It estimates the net savings should be 30 to 40 per cent.

“The core of the brand is going to be low fares and enabling people to travel that wouldn’t be able to travel otherwise or travel more often,” WestJet executive vicepresident Bob Cummings said Wednesday during an investor day presentation.

About 60 per cent of Swoop passengers are expected to fly for leisure travel, 30 per cent to visit friends and family and 10 per cent for business or in groups.

Cummings said WestJet “ripped apart” discount airline models used in the United States and Europe and looked at lessons they learned when designing Swoop.

The key is to cut costs to their absolute lowest by outsourcing jobs where possible, obtaining low airport charges and restricting sales to online transactions.

However, WestJet sees opportunity in eliminating the need for Canadian travellers to cross the border to access cheap fares.

Fares from Canadian airports like Hamilton and Abbotsford, B.C. are expected to be similar to those at U.S. border airports, while saving hours in traffic.