Here we go.
The WestJet Group today kicked off what promises to be an ongoing aviation debate in Canada, calling for a freeze on mandatory government-imposed fees and a permanent end to airport rent collection.
The group today released a progress report called “Soaring Together,” which highlights the airline’s accomplishments across Canada since the launch of its growth strategy nearly two years ago. But the news that will stir up the industry is WestJet’s call for major changes in government regulation.
“Given concerns around affordability and competitiveness, WestJet is making the following policy recommendations to the federal government,” airline officials said.
- A comprehensive review of Canada's user-pay system for aviation infrastructure. This review should consider competitiveness impacts, intermodal equity, border leakage and value for taxpayers.
- An immediate freeze on mandatory imposed government fees, charges and policies that increase the cost of travel.
- The cessation of the collection of airport rents by the federal government.
The Canadian Airports Council states on its website that the federal government collects up to 12% of airport gross revenues in the form of rent for the 21 privately operated airport authorities. In 2019, Canada’s airports provided CAD $419 million in federal rent—more than $6.5 billion transferred back to the federal government since 1992.
"WestJet is committed to maintaining a transparent and low-cost structure that welcomes competition and drives the best value for our guests. Yet we operate in a very expensive and user-paid infrastructure environment that significantly drives up ticket prices for the everyday Canadian and hinders competition," said Alexis von Hoensbroech, WestJet Group Chief Executive Officer.
"Air travellers are paying too much in government fees and charges on their plane ticket compared to other nations and other modes of travel. These changes would increase competition, lower ticket prices, and foster greater transparency for our guests.”
"The WestJet Group continues to drive job creation, investment and economic prosperity through the deployment of our ambitious strategy that has enabled us to expand our network and unlock more affordable travel options for Canadians," said von Hoensbroech,
"From coast-to-coast, communities depend on our reliable and affordable air service. As we build on our success to better serve our guests, we must take action to safeguard affordability."
Other Report Highlights:
In 2023, guests purchased more than 2.5 million tickets below $100 from The WestJet Group. Nearly 50% of all tickets purchased were priced by WestJet under $200.
Over the last two years, The WestJet Group has hired more than 5,400 employees and currently employs 15,000.
WestJet has positioned the YYC Calgary International Airport as its global hub, making it the best-connected mid-sized city in North America. By the end of 2024, The WestJet Group is expected to grow its seat capacity in Calgary by 40% from 2022 levels.
Officials said that WestJet is the number one carrier in eight of nine major Western Canadian airports, making it Canada's western leader.
WestJet is Canada's most dependable major airline, surpassing industry standards in on-time departures, arrivals, and completion rates. In April 2024, WestJet ranked second in on-time performance against all major North American carriers.
In 2023, WestJet completed its major acquisition of Sunwing Airlines and Sunwing Vacations, bolstering scale and market presence to bring the best vacation offerings to all Canadians. Currently, one in two vacation packages sold in Canada will be sold through the various brands that make up Sunwing Vacations Group.
Despite Canada's high cost and uncompetitive regulatory environment, since WestJet was founded in 1996, ticket prices in Canada have dropped by more than half in real terms as a direct result of WestJet's entry and ongoing competition in the market.
