WestJet's new boss has international ambitions

WestJet'snew boss says he can see "no limit" to the international opportunities for theCalgary-based airline, eyeing potential growth in Asia, Europe and Latin America.

CEO Ed Simssaysthat with advances in fuel efficiency and airplane technology, there's opportunity not only to take more Canadians abroad, but to attract more travellers to Canada.

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"We only have a population of 35 million here, but we have the opportunity to fly to populations of threebillion," Sims toldCBC News.

"There is absolutely unlimited opportunity ... to tap in to vast markets in Asia,still huge markets in Europe, an enormous market in Latin America, with unlimited opportunity to boost tourism to this country."

WestJetfirst made a name for itself as a low-cost domestic airline. Over the years, it has expanded to destinations in Mexico, the Caribbean and, most recently, Europe.

But last year, the companyplaced a firm order for 10 Boeing Dreamliners, which will have the range and fuel efficiency to reach more distant markets.

WestJet's first Dreamliner 787sareexpected to bedelivered between the first quarter of 2019 and December 2021.

Theairline also has an option to buy an additional 10 Dreamliners to be delivered between 2020 and 2024.

With a range of up to 14,000 kilometres, the jets are said to be as much as 20 per cent more fuel efficient than WestJet's current fleet of 767s.

Sims said the most significant element of the company's growth plans focuses on Canadian travellers, but he said thatthey would also look to bring international gueststo Canada.

"Whether that's from Guangzhou, whether that's from Rio de Janeiro, whether that's from London, we can effectively build a Canadian experience in conjunction with partners, like Destination Canada, from the moment somebody walks on board our aircraft," he said.

"That's a phenomenal opportunity."

Thecompany is going to have to come to the table and try a little bit harder...- Rob McFadyen,Air Line Pilots Association

Airline analyst Fred Lazar said there are a lot of opportunities for inbound tourism from Asia, but added that the marketis crowded and difficult to crack.

"They're going to prefer their own airline that's common around the world," said Lazar, a professor at York University'sSchulichSchool of Business in Toronto.

"Unless he partners withmore Asian carriers he's not going to make any major inroads into attracting travelers in that part of the world."

Instead, Lazarexpects WestJetto use its Dreamlinersprimarily on European runs and maybesome South American flights.

"I'm sure they have an idea where they're going to deploy the first five or six," he said."Beyond that, they're probably still thinking about it."

Domestically, Simssaid the launch of WestJet's new ultra-low-cost carrier, Swoop, remains on schedule for June 20.

Sims also sounded positive in discussing the state of talks between the airline and its pilots, who are seeking their first unionized contract with the company.

"I am confident that at around the time that we come to launch ourultra-low-cost carrier, Swoop, that we will have terms of agreement," Simssaid.

"There's certainly more that unites us than divides us. When rational people continue to sit round a table, you generally find a rational outcome."

Rob McFadyen,chairman of WestJet's Air Line Pilots Association (ALPA)master executive council, said negotiations are going better than in the past.

Earlier this year, when GreggSaretsky wasWestJet'sCEO, the union said talks between the two sides weregoing"poorly." Saretskyretiredin March and was replaced by Sims.

McFadyensaid he's looking to make significant progress, but added thatthey've had two negotiating sessions now where they haven't passed any tentative agreements on any sectionof the contract.

"Thecompany is going to have to come to the table and try a little bit harder so we can get this done," he said.

The two sides will sit down again this week for three days of conciliation talks beginning Monday.

AltaCorpCapital analyst Chris Murray said the talks are important because it will set benchmarks for a number of WestJet'snew initiatives, including its wide-bodied aircraft and Swoop.