Swoop targets pricesensitive passengers
WestJet Airlines Ltd. began selling tickets for its ultra low-cost carrier Swoop on Thursday, the first major step in the airline’s plan to build up the price-sensitive segment of Canada’s air travel market.
Swoop, which WestJet said will remain distinct from its main line operations with separate employees and check-in counters at airports, will begin flying passengers on June 20.
The carrier will offer six weekly flights from Hamilton to Abbotsford, Edmonton, Winnipeg and Halifax; six weekly flights from Abbotsford to Hamilton; and three daily flights between Abbotsford and Edmonton. The airline also announced a headline-grabbing promotion on Thursday, offering the first 2,000 seats on Swoop for $0, but leaving passengers on the hook to pay for taxes and any other additional fees.
Bob Cummings, WestJet’s executive vice president of strategy overseeing the Swoop launch, said more domestic and southern destinations — such as Mexico and the Southern U.S. — will be added to the Swoop lineup in the coming year. He said the focus for the new carrier is on attracting costsensitive fliers and those travelling to nearby U.S. cities, like Buffalo, New York and Bellingham, Wash., for cheaper flights.
“With respect to WestJet evolving its focus over time to go after a more businesstype traveller, as well as going global with our widebody planes, the model was starting to get stretched a bit too thin with regards to the price-sensitive market,” Cummings said.
“We’ve analyzed and found that a low-structure, very focused organization can stimulate the market more in Canada as well as go after that cross-border opportunity, which we think is significant.”
Key to the ULCC model, made popular in Europe with carriers such as RyanAir and easyJet and in the U.S. with Spirit Airlines, is offering a low base fare and charging customers extra for everything from priority boarding to seat selection and baggage. For example, while passengers will be able to bring a small personal item aboard, Swoop will charge $36.75 for carry-on luggage, and $26.25 for a checked bag.
“One of the principals is to keep this as simple as possible. Complexity drives cost and that potentially contributes to higher fees,” Cummings said, adding that he expects ancillary fees on Swoop to be nearly double the $19 WestJet earns on flights.
For Swoop, one-way fares, including taxes, fees and charges, will start as low as $39 for flights from Abbotsford to Edmonton, with the most expensive flights between Hamilton and Abbotsford coming in at $99.
Swoop’s current flight schedule will see it use three Boeing 737-800 jets, equipped with 189 seats each. The airline plans on expanding to 10 737 aircraft by 2019.