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Air Canada
Symbol AC
Shares Issued 244,294,844
Close 2014-07-25 C$ 9.64
Market Cap C$ 2,355,002,296
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Globe says Air Canada, WestJet could face Southwest

2014-07-28 08:45 ET - In the News

Also In the News (C-WJA) WestJet Airlines Ltd

The Globe and Mail reports in its Saturday edition Southwest Airlines says Canada is on a list of "attractive" destinations it is considering for expansion. The Globe's Greg Keenan writes the delivery of Boeing 737-800 models that offer more seats and longer range than Southwest's 737-700 planes makes expansion to Canada, Hawaii, Alaska, Central America and the northern part of South America possible, the airline's chief executive officer Gary Kelly told analysts on a conference call Thursday. The move would mean increased competition for Air Canada, WestJet Airlines and Porter Airlines, which would likely lead to reduced fares for transborder travellers. Independent analyst Robert Kokonis agrees the airline's plans are feasible. "There's some opportunities because there's a lack of low-cost carrier action between the two countries and that's part of the problem why we're leaching five million passengers to and from the U.S. border airports," Mr. Kokonis said. Mr. Kelly did not say when new routes might be added or which routes are being considered, but noted that the carrier is assessing 50 destinations outside the continental U.S. market. Southwest has focused strictly on the U.S. market until recently.

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