WestJet will wind down its subsidiary Swoop by the end of October to integrate the low-cost carrier’s operations under its main brand, the airline said Friday.
The move comes after pilots at both airlines ratified a new collective agreement that puts them on a uniform pay scale.
WestJet chief executive Alexis von Hoensbroech said he had considered keeping Swoop as a separate subsidiary, but higher wages for its flight crews made that option less realistic.
“We had prepared for both possibilities and then decided that since the whole thing didn’t make sense, we were actually ready to integrate Swoop into the core business,” von Hoensbroech explained during a telephone interview from WestJet’s head office in Calgary.
Every plane trip in the carrier’s fleet of more than 180 planes will offer a portion of ultra-low fares by Oct. 29, the day after Swoop’s flights end, it said.
“We’re actually expanding the reach (of our offerings) at very low prices to a much, much wider network than we ever could have covered with Swoop. So we see that as an advantage and as an increased footprint for ultra-low priced supply in Canada. »
WestJet and Swoop pilots won a 24 per cent pay rise over four years in a tentative deal reached last month after narrowly avoiding a strike.
Negotiations continued to the very end, and WestJet canceled more than 230 flights in the event of a work stoppage before an agreement was reached, hours before the May 19 strike deadline.
Competition for cheap airfares has intensified in recent years, particularly in Western Canada, as newcomers Flair Airlines and Lynx Air have competed with Swoop for market share on key routes.
“The market has become quite competitive,” observed Mr von Hoensbroech, while insisting that the integration of Swoop was strengthening its grip on low-cost offers, rather than marking a setback.
The company clarified that no layoffs were expected with the integration, with all Swoop employees expected to move to the mainline.
Ratification of the new convention
Earlier on Friday, the Air Line Pilots Association (ALPA) union said WestJet and Swoop pilots had ratified their new four-year collective agreement, which includes some of the best pay increases in the world. industry, elements of job security and major improvements in terms of working hours and quality of life.
The association claimed that 87% of pilots who voted backed the deal.
The new contract comes into effect on 1er July, with a salary increase retroactive to 1er January. It expires at the end of 2026.
“Having this agreement in place will go a long way to solving many of the airline’s labor issues and will bring more stability to our operations,” said Bernard Lewall, who leads ALPA’s WestJet contingent. , in a press release.