CALGARY -- Calgary-based WestJet is taking measures to protect the airline as the outbreak of the COVID-19 virus continues to drive down travel demand. Officials say it could result in layoffs.
"While many actions have been taken to protect the health and safety of our guests, our teams and our business, significantly weakened demand across the network requires us to protect the financial well-being of the WestJet Group of Companies," said WestJet officials in a statement released Wednesday morning.
The airline is undertaking immediate steps to reduce costs including:
- The freezing of discretionary spending
- A company-wide hiring freeze
- Offering voluntary-leave options
In an internal email to employees from WestJet president and CEO Ed Sims, the airline will be looking at suspending select flights and routes in the coming months.
Sims writes that concerns about decreased travel, especially abroad with the grounding of the Boeing 737 Max 8 jets, could result in a drop of more than 12 percent of the airline’s overall capacity.
"In light of the situation it is imperative that all aspects of our spending and cost a review in the line with anticipated capacity cuts," said Sims in the memo. "This includes the freezing of discretionary spending (other than essential safety and regulatory cost), an immediate demand of all suppliers to review the pricing and request to all of you to evaluate any non-essential business travel."
U.S carriers Delta and American Airlines have made similar moves and Air Canada has also suspended all flights to Italy.
WestJet is scheduled to begin service to Rome on May 2nd but the company says they are monitoring the situation to determine if that changes.
The company announced this week it is also waiving cancellation fees for passengers who booked flights before March 31 and will enhance sanitizing procedures on all of its planes to ensure passenger safety.
Premier Kenney, who was at the airport en route to Ottawa to meet Prime Minister Trudeau, said the news was symptomatic of the current state of affairs for the airline industry.
"The airline are hemorrhaging cash right now, and one thing I will take as a very clear message to Ottawa is any benefit that Air Canada receives as the so-called flagship carrier must be equivalent to the benefit that WestJet receives.
"We will not accept any kind of regional favourtism," he said, "when it comes to any prospective future federal support for the airlines."
With files from Stephanie Thomas
