WestJet and its pilots have ratified a new contract that provides pilots with a big pay boost, and eliminates low-cost carrier Swoop.
The second collective bargaining agreement between WestJet and the Air Line Pilots Association (ALPA), the certified union representing WestJet and Swoop pilots, was ratified today.
As negotiated in the collective agreement, the WestJet Group will now begin integration efforts of its ultra-low-cost airline, Swoop. Through an expedited process, the airline anticipates a full integration into its mainline operations by the end of October. To avoid traveller impact, Swoop will operate its existing network through to the end of its published schedule on October 28. Swoop employees will move to WestJet.
“The WestJet Group is pleased to have reached an industry-leading agreement in negotiation with ALPA that recognizes the value and instrumental contributions of our current and future pilots,” said Alexis von Hoensbroech, WestJet Group, Chief Executive Officer. “This agreement bolsters our ability to provide certainty and career opportunities across our organization for years to come while ensuring the competitive sustainability of the WestJet Group.”
The agreement is in effect from January 1, 2023, and will be in place until December 31, 2026.
Multiple reports have said WestJet pilots are in line for a 24% pay hike over four years.
CityNews reports the move could eliminate routes from smaller Canadian airports, thus reducing competition in a market that already has high prices.
Generally, in the short term, there’s not a whole lot of change, but what happens is the parent airline that they’re getting merged into starts looking at the profitability of the routes. And over time what you’ll see is eventually those smaller routes and the less profitable routes start to get eliminated,” Wayne Smith, a hospitality professor at Toronto Metropolitan University, told City News.
Smith said the loss of Swoop could represent a five-to-10-year setback for some of these smaller airports.”The WestJet Group is confident in the outcome of this negotiated decision and the path forward to integrate Swoop into WestJet’s operations,” continued von Hoensbroech. “We continue our strategy toward providing reliable, affordable travel across the WestJet Group, leveraging the valuable experiences and learnings from the Swoop business model. This integration will enhance our ability to serve a broader spectrum of guests. Instead of only 16 aircraft serving the ultra-low-cost market, each aircraft, in our 180-strong fleet, will offer ultra-affordable travel options through to a premium inflight experience.”
“The WestJet Group is committed to ongoing engagement with valued communities and stakeholders to ensure that the airline continues to provide critical and affordable air travel to communities across Canada,” officials said.