Swoop, WestJet Airlines‘ new discount carrier will start service tomorrow with a maiden flight from Hamilton, Ontario to Abbotsford, British Columbia.
It’s the second discount carrier in Canada, with a third expected to debut sometime this year.
Stephen Greenway is president of Swoop and this is the sixth airline startup for the Australian native.
“From my perspective coming into this fresh — I’ve been in Canada four months now — I personally believe there’s a huge opportunity in Canada,” he said.
Greenway held executive positions with Japanese low-cost carrier Peach, as well as Virgin Blue, Virgin Atlantic and Qantas.
The plan is to offer flights that will lure Canadians back across the border from airports in Buffalo and Plattsburgh, in New York, and Bellingham, Washington, in the United States.
“From our perspective there’s the opportunity to fill a gap, there’s an opportunity to stimulate demand, there’s an opportunity to welcome Canadians back from crossing the border. We believe there’s a significant enough market to be able to thrive,” Greenway said in an interview with Canadian Press.
Swoop named its first plane the #Hamilton, a nod to its first airbase at the city’s John C. Munro International Airport. (Swoop)
Currently there’s only competition from the west-coast based carrier, Flair Air.
It’s planning on moving its headquarters from Kelowna, British Columbia to Edmonton, the capital of neighbouring province, Alberta.
But the market for deeply discounted fares and charges for everything from an on-board beverage to checked and carry-on luggage is steeply competitive in Canada.
Air Canada’s Tango, Canada 3000, Roots Air and Jetsgo are some of the carriers that have been grounded for similar efforts in the past.
Chris Murray is a transport analyst with AltaCorp Capital.
“I don’t think we’ve ever seen a true ULCC (ultra low-cost carrier) model in the Canadian marketplace before so I think we’re in somewhat uncharted territory,” he said.
Canada is the only G7 country without a true ultra low-cost carrier (ULCC) and the model has been successful in Europe, Australia and the United States, Murray said.
The Canadian ultra low-cost market can handle 10 million passengers per year, enough to support up to 50 aircraft, Murray estimates.
It’s an opportunity for leisure travellers to Las Vegas, Arizona and Florida, he added.
Swoop’s fares will be 30 to 40 per cent below the national carrier.
The challenge, however, will be in keeping costs down including lower labour costs, getting 189 seats into Boeing 737-800s, and creating demand from people who don’t usually fly because of the high cost.
“I don’t think Canada’s big enough for half a dozen players in this space, but there’s certainly plenty of room for two and maybe three” according to Flair’s executive chairman David Tait.
It’s all welcome news for the summer of 2018.
With files from CBC and Canadian Press
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