Tuesday, March 16, 2010

'Turbulence' ahead for WestJet after CEO resigns

Westjet Boeing 737-700 – C-FWBW, originally uploaded by zonaphoto.

http://www.montrealgazette.com/business/fp/Turbulence+ahead+WestJet+after+resigns/2686191/story.html

From the article:

“”Since its launch in 1996, WestJet has easily become the favored Canadian airline by the Street. But in recent months, that momentum has shifted to Air Canada, according to Ben Cherniavsky, Raymond James analyst.

Not only have fares fallen at WestJet throughout the recession due to an excess of capacity in the domestic market, more seats are expected to be added in the months ahead as the Calgary carrier shifts its winter flights to sunny locales back into the Canadian market. Moreover, the carrier is still expecting to take more planes this year despite the slow return of passenger demand.

More importantly, WestJet botched the implementation of its new reservation system in October, which has damaged its reputation for customer service since and delayed the implementation of its new loyalty program and code-share agreements, Mr. Cherniavsky noted. WestJet had planned to launch its loyalty program last June, but delayed it until two weeks ago.“”

[Via http://flydolce.wordpress.com]

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