WestJet’s move could cost Yukon jobs
WestJet’s plans to enter the Yukon market could be harmful to local airline service and result in significant job loss, says Joe Sparling, president of Air North.
Photo by Whitehorse Star
Joe Sparling
WestJet’s plans to enter the Yukon market could be harmful to local airline service and result in significant job loss, says Joe Sparling, president of Air North.
WestJet announced yesterday that it will begin offering service between Vancouver and Whitehorse, beginning this spring.
As an initial offer, the company has announced $99 one-way flights, plus taxes and fees starting on May 17 and running to Aug. 29 for seats booked by Feb. 14.
It will also offer hotel packages from Whitehorse to all destinations where the company offers vacation deals.
The move north by WestJet could come at the expense of the locally owned airline, Sparling told the Star this morning.
Air North currently offers twice daily runs to Vancouver and service four times a week to Edmonton and Calgary. It also provides daily propeller flights to Dawson City, Old Crow and Inuvik as well as summer service to Fairbanks.
Until yesterday, Air Canada’s Jazz subsidiary was Air North’s only competition for the northern market. WestJet’s move, part of a greater campaign to challenge Air Canada’s share of the national market, could result in losses for the local airline.
“We are always prepared to deal with competition,” said Sparling. “It’s a competitive business, it’s a competitive market. It’s disappointing that the Yukon is getting caught up in a bigger, national battle between large companies. It will have an impact on us, but we are prepared to compete.”
The local airline has a policy of matching any rate set by its competitors.
Air North announced that it too will offer $99 flights, beginning May 17, as did Air Canada.
“Anytime you go into a new market, you have to carve out a new share for yourself,” said Sparling. “So we’ll try to keep our rates on par as long as it lasts, but they will be operating at a loss and so will we. How long are they willing to maintain that?”
If Air North is caught in the middle of a struggle between much larger companies, it may also mean job losses for Yukoners, he said.
“It’s important for us to hang on to our flying and to hang on to our traffic. If we don’t, we’ll lose some Yukon jobs,” said Sparling.
“Whitehorse is unique because the community has something to lose. We are getting caught up in a battle, with no significant benefit to Whitehorse and no significant benefit to the North.”
Sparling founded Air North in 1977 and will be celebrating the company’s 35th anniversary tomorrow.
Air North expanded its services to include Boeing 737 jet service to southern centers in 2002, said Sparling, adding the local airline moved about 155,000 passengers last year.
The company employs 168 full-time equivalent workers in the Yukon, and about 77 per cent of its total workforce are Yukoners with 82 per cent of the payroll distributed in the territory, said Sparling.
He estimates that its employees represent 1.5 per cent of private-sector employment in the territory.
Cooperation with WestJet could be a solution that benefits not only his business but the whole territory, he said.
“WestJet have done a good job taking a piece of Air Canada’s pie,” said Sparling. “They went from nothing to about 40 per cent of the market share. I think they are a fine company, they do a fine job ... they could work with us, accessing WestJet route services is a benefit for people here but not at the expense of local jobs.”
Regardless of the outcome, Sparling believes a loss for Air North would be a loss for the territory.
He points out last fall’s conflict between Emirates Airline, Air Canada and the federal government, where the government acted on behalf of the national airline, limiting landing access to protect Canadian business interests.
“Why is it any different when it comes to the North?”
WestJet has not yet announced whether it plans to provide seasonal or year-round service to the community.
yukonjj
Jan 31, 2012 at 4:37 pm
I would hope that yukoners, if they do start to use Westjet for some flights, would quit patronizing Air Canada. Please remember how Air Canada stuck it to us before they had any competition. There is lots of room for 2 airlines, and I hope it ends up being Air North and Westjet only.