WestJet is facing lower ticket sales after threats from pilots strike

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As WestJet’s pilots consider a strike vote, the airline company’s passengers are thinking about other alternatives for travel.

WestJet’s pilots, who are represented by the AirLine Pilots Association are negotiating their very first agreement, after forming a union one year earlier. Negotiations for a new contract began in September and the lack of a contract led to a strike vote 2 weeks earlier. That vote ends Thursday at 8 a.m. and the earliest pilots might strike is May 19.

As an outcome of the uncertainty, fewer individuals are booking flights.

” We’ve seen progressive, what we would call softness or a degeneration on reservations,” stated WestJet’s chief executive, Ed Sims. “And plainly and naturally, we’re seeing a degree of anxiety from our potential visitors.”

Sims said the airline company is dealing with contingency plans to “keep the very best service we can for as many guests as we possibly can. I have practically a visceral reaction to the idea of 70,000 WestJet guests possibly being stranded, 740 flights being disrupted.”

Shares topple on Tuesday

Less bookings on the airline company has resulted in lower profits expectations as well, which didn’t please Bay Street experts. The airline company is facing lower sales, while fuel costs are going up and it attempts to launch a companion airline company in Swoop. There are questions regarding whether WestJet might break its streak of 50 successive lucrative quarters.

WestJet’s share value dropped almost 10 percent on Tuesday.

More than 150 pilots lined the entrance to WestJet’s headquarters on Tuesday morning, in an informative picket during which they agitated for a contract and gotten in touch with WestJet to not outsource their tasks to Swoop pilots.

WestJet is planning to obtain Swoop in the air on June 20. It’s designed to be an ultra affordable carrier, with low fares as well as lower labour costs. To that end, Swoop has been looking outside of Canada for pilots.

For their part, WestJet’s pilots wish to pilot Swoop flights. That will trigger costs on the brand-new airline company to be higher than WestJet had actually originally planned.

WestJet has a little more than a week to fix those essential distinctions. The airline company said Tuesday that when it comes to task action, it would reimburse guests whose itinerary are interrupted.

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