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Winnipeg Free Press - PRINT EDITION

WestJet adds space for a stretch

Airline ups legroom for some seats at others' expense

By: LuAnn LaSalle

Posted: 08/2/2012 1:00 AM | Comments: 0

WestJet passengers willing to pay more for extra legroom will be able to fly "premium economy" in four rows -- but some non-premium customers might notice a little less space in the other seats.

Aiming its premium seats at business travellers with an eye on revenue growth, WestJet will increase the distance between the back of the seat and the one behind it to 91 centimetres in four rows of its planes across its fleet -- an increase of ten centimetres on some of its aircraft.

But that also means the rest of the seats will be reconfigured to 78 to 81 centimetres of legroom, a move WestJet says will bring it "in line with North American competitors."

"I don't expect our guests to feel any impact from that reconfiguration, but we'll certainly see the revenue benefit," president and CEO Gregg Saretsky told analysts on Wednesday.

However, the number of lower-cost seats available on each flight is going down, Saretsky said after WestJet announced a second-quarter profit of $42.5 million and raised its dividend.

The seat change is aimed at WestJet's business class to compete with Air Canada (TSX:AC.B).

WestJet does not offer a first-class cabin, but the new premium class will bridge a gap in ticket prices between economy and traditional first-class, which is too costly for many travellers.

"We don't have any concern about seats going empty," Saretsky added.

WestJet (TSX:WJA) will also have a new online storefront and consumers will be able to select from a variety of fare categories, instead of seeing just the lowest fare, he said.

The planes should be reconfigured by December and the premium economy seats will offer passengers with the Calgary-based airline early check-in, the airline said.

Currently leg room comes in at 81 centimetres on WestJet's Boeing 737-600s and 737-700s and 86 centimetres on its Boeing 737-800s.

Non-premium seats on all of those planes will be reconfigured to 78 to 81 centimetres, the airline said.

WestJet's move follows a trend of similar upgrades to economy-class seats at international airlines.

Cathay Pacific announced Monday that it has accepted delivery of a new Boeing 777-300ER fitted with the new premium economy configuration, which features more legroom, as well as dedicated flight attendants for that area, special menus and champagne.

Airline analyst Robert Kokonis said there's a global trend toward "premium economy" seating with airlines.

Over the past five years, WestJet has been progressively rolling out a lot of additional "bells and whistles," moving it beyond being just a low-cost carrier to compete with Air Canada for business travellers, he said.

"They had to penetrate Central Canada and, in particular, the corporate-travel marketplace," said Kokonis, president of airline consulting firm AirTrav Inc. in Toronto.

WestJet has added, for example, a frequent flyer program and lounges in airports across the country, he said.

"They recognize the need to have some sort of premium economy product to have one more offering to the corporate crowd to get them to travel with WestJet."

He said WestJet isn't removing seats for the premium seating, but simply tightening up leg room with passengers.

"To the average person, unless you're really big, it won't be that noticeable."

WestJet also announced Wednesday that it has firmed up orders for 20 of Bombardier's Q400 NextGen turboprop aircraft, with seven to be delivered in 2013 and the remainder to be delivered in stages through 2016. WestJet also has options to buy up to 25 additional Q400 aircraft.

Shares in WestJet closed down 59 cents, or 3.6 per cent, to $15.99 in trading on the Toronto Stock Exchange.

-- The Canadian Press

Republished from the Winnipeg Free Press print edition August 2, 2012 B3

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