WestJet will spin off its Swoop subsidiary in late October as it integrates the budget carrier’s operations under its main banner, the airline said Friday.
The move comes after pilots with the two airlines ratified a new collective agreement that will bring them into line with pay.
WestJet CEO Alexis von Hoensbroech said he considered keeping Swoop separate, but higher wages for its flight crews made the option unrealistic.
“We were prepared for both possible outcomes, and then decided that, provided that the generality did not make sense, we were really ready to integrate Swoop into the main line of business,” said von Hoensbroech in a telephone interview from WestJet’s Calgary headquarters.
Every trip on planes in the carrier’s 180-plus fleet will offer a portion of the ultra-low fares on Oct. 29, the day after Swoop stops flying, he said.
“We’re actually expanding our ultra-low-cost reach to a wider, wider network than we can cover with Swoop. So we really see this as an advantage and as a higher footprint for ultra- low-cost offer. in Canada.”
WestJet and Swoop pilots got a 24 percent hourly pay bump over four years under a deal tentatively reached last month that narrowly averted a strike.
Bargaining came down to the wire, with WestJet canceling more than 230 flights in preparation for job action before reaching a deal hours before the May 19 strike deadline.
Competition for budget fares has grown in recent years, particularly in Western Canada, as upstarts Flair Airlines and Lynx Air have challenged Swoop for market share on major routes.
“The market has become quite competitive,” von Hoensbroech said, but insisted that the addition of Swoop strengthens its grip on discount offers, rather than marking a recession.
The company said no layoffs are expected from the merger, with all Swoop employees slated to move to the mainline.
Christopher Reynolds, The Canadian Press
