A runway for growth WestJet's plans to connect B.C. with the world June 1, 2017 1
Our flight path today • History and growth • WestJet in British Columbia • Our five-year plan • Connecting B.C. with the world • Announcement! 2
Launch day: February 29, 1996 3
WestJet in 1996 WestJet started in 1996 with service to five domestic destinations 4
WestJet today Over 100 destinations in more than 20 countries 5
Going global WestJet has added over 30 destinations in the last 5 years New in the last 5 years 6
WestJet in British Columbia 7
WestJet in B.C. in 2005 Destinations • In 2005, BC guests had limited non-stop options Domestic 13 Transborder 5 on WestJet to get across Canada or to International 0 Total 18 International leisure destinations 28 non-stop routes Source: Diio SRS 8
WestJet in B.C. today Spokes added since 2005: +46 +17 76 non-stop routes Served in 2005 New Since 2005 9 Source: Diio SRS
WestJet has increased seat capacity in B.C. by approx. 75% WestJet seat growth in BC 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 WestJet has dedicated ~15% of system seat growth to BC since 2010 and now operates more than 5.2M seats into BC, up from 2.9M in 2005. 10 Source: Diio SRS
WestJet brings over 3.5M guests into B.C. August 2015 to August 2016 Fort St. John ~50k Prince George ~100k Terrace ~65k Kamloops ~55k Comox Vancouver Kelowna ~150k ~2M ~540k Nanaimo Penticton ~50k ~25k Abbotsford Victoria ~270k ~415k Note: Trailing twelve month (TTM) to August 2016 Source: IATA PaxIS 11
WestJet brings in nearly $2B to the B.C economy August 2015 to August 2016 Hotel & Discretionary spending Fort St. John ~$15M Prince George ~$40M Terrace ~$25M Kamloops ~$20M Comox Vancouver Kelowna ~$60M ~$885M ~$270M Nanaimo Penticton ~$20M ~$10M Abbotsford Victoria ~$135M ~$200M Note: Trailing twelve month (TTM) to August 2016 Average hotel price from Hotel Price Index - Canada Assumed average stay of 3 nights with discretionary spending of $100/day Source: IATA PaxIS passengers & average fares 12
WestJet continues to expand its service from YVR 11% 46% 49% 37% 41% 13 Source: Diio SRS
WestJet by the numbers Direct, indirect and induced aggregate impact in B.C. (2016) $1.1B $3.2B 27,728 Number of FTEs Economic output Labour income Source: The Economic Impact of WestJet Airlines Upon the Canadian Economy 2016 , RP Erickson & Associates 14
WestJet by the numbers Nearly $600M in total tax revenue generated by WestJet in B.C. in 2016 $55M $272M $262M Municipal taxes Provincial taxes Federal taxes Source: The Economic Impact of WestJet Airlines Upon the Canadian Economy 2016 , RP Erickson & Associates 15
Giving back to B.C. WestJet is celebrating the 10 th anniversary of WestJet Cares for Kids WestJet Cares for Kids has • eight national charitable partners WestJetters Caring for Our • Community B.C. 446 vouchers in 2016; • 326 in 2017 so far Vancouver: 108 vouchers in • 2016; 87 in 2017 so far 16
WestJet’s new five -year plan 17
See it 2022 WestJet’s new five -year plan is staked by three bold claims 18
WestJet will launch an ultra-low-cost carrier • Launch by end of 2017 with 10 high-density Boeing 737- 800 aircraft • Clear demand around the world • Think Ryanair, easyJet, Spirit, Frontier • New name, separate identity • Brand will be cheap and cheerful • Completely unbundled/a la carte approach; select and pay for only the products and services you want • Routes to be announced by Q4 2017 19
Putting the pieces of the puzzle together WestJet has one comprehensive strategy for profitable, sustainable growth PREMIUM CULTURE REWARDS VALUE GLOBAL ECONOMY GUEST AIRLINE BEST IN SAFE PLUS PARTNERSHIPS CLASS EXPERIENCE BUSINESS ENGAGED TRAVELLER ROIC WESTJETTERS ON TIME SIMPLE EMPOWERED EASY TO DO WIDEBODY ULCC CARING INNOVATIVE BUSINESS WITH 20
Market positioning WestJet is evolving to serve a broader spectrum of guests Canadian market size: ~$28B Thrift Value Premium/Luxury Full-service network Cost Structure Value carriers Economy / Premium Economy / Business Economy / Premium Economy ULCC WestJet 787-9s Economy WestJet ULCC Low Features & Schedule High Total Canadian market Addressable market segments Source: IATA PaxIS and internal estimates 21
Airline partnerships WestJet has more codeshare partners to Asia than our competitor CODESHARE: INTERLINE: 22 22
Future growth WestJet brings guests into BC from global destinations WestJet and partner 6 th freedom traffic growth in BC from key US markets Strengthen and expand Increased WestJet our global partnership network connections in traffic in BC with flag BC from global carriers in Europe/Asia destinations WestJet expansion into Continued narrow-body new international wide- fleet growth body destinations from BC Growth with wide-body aircraft 23
We already have our eye on a few opportunities! Potential WestJet route map Illustrative network focusing on mass market vs. niche flying 24
A closer look at YVR to Asia-Pacific Potential WestJet route map Illustrative network focusing on mass market vs. niche flying 25
WestJet has applied to serve China 26
Thank you! 27
Recommend
More recommend
