WestJet will wind down its Swoop subsidiary by late October as it integrates the budget carrier's operations into its main banner. (Photo: The Canadian Press)

By The Canadian Press

WestJet to wind down budget airline Swoop, integrate it into main operation

Jun 9, 2023 | 2:00 PM

CALGARY, AB – WestJet will wind down its Swoop subsidiary by late October as it integrates the budget carrier’s operations into its main banner, the airline said Friday.

The move comes after pilots with the two airlines ratified a new collective agreement that brings them onto a level pay scale.

WestJet CEO Alexis von Hoensbroech said he mulled keeping Swoop separate, but that higher wages for its flight crews made the option less realistic.

“We were prepared for both possible outcomes, and then decided that, provided the overall didn’t make sense, we’re actually ready to integrate Swoop into the mainline business,” von Hoensbroech said in a phone interview from WestJet’s Calgary headquarters.

Each trip by planes in the carrier’s 180-plus fleet will offer a portion of ultra-low-cost fares by Oct. 29, the day after Swoop ceases to fly, he said.

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“We are actually broadening our ultra-low-cost reach to a much, much broader network than we could have ever covered with Swoop. So therefore we actually see this as an advantage and as an increased footprint for the ultra-low-cost offering in Canada.”

Pilots of WestJet and Swoop secured a 24 per cent hour pay bump over four years under a deal agreed on tentatively last month that narrowly averted a strike.

Bargaining came down to the wire, with WestJet cancelling more than 230 flights in preparation for job action before a deal was reached hours ahead of the strike deadline on May 19.

Competition for budget airfares has grown in recent years, particularly in Western Canada, as upstarts Flair Airlines and Lynx Air challenged Swoop for market share on key routes.

“The market has become pretty competitive,” von Hoensbroech said, but insisted Swoop’s integration strengthens its grip on discount offerings, rather than marking a retreat.

The company said no layoffs are expected from the integration, with all Swoop employees slated to move to the mainline.

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