Incoming WestJet CEO sees further growth
Westjet Airlines incoming CEO Gregg Saretsky poses for a photo at the WestJet headquarters in Calgary. on Tuesday. Saretsky replaces Sean Durfy.
Updated: March 16, 2010 2:42 PM
CALGARY — WestJet Airlines Ltd. will continue to press into international markets through deals with other carriers, the company’s new incoming chief executive said Tuesday.
The Calgary-based discount airline (TSX:WJA) already has plans to roll out code-share deals with Air France, the Netherlands’ KLM and Texas-based Southwest Airlines (NYSE:LUV).
Building on that, WestJet wants to see traffic from Asia, South America and elsewhere in Europe come to Canada on its network, Gregg Saretsky told a news conference, a day after the surprising resignation of Sean Durfy as president and CEO, effective April 1.
Gesturing to a model of the small Boeing 737 planes WestJet currently has in its fleet, Saretsky said: “I don’t think you’ll see this aircraft flying across the Pacific anytime soon.”
So code-share arrangements — which allow passengers to seamlessly travel from one airline’s network to another — are the only way to achieve that international growth.
“Our goal is to have good coverage on all continents,” Saretsky said in an interview after the news conference.
“Because of our reputation we have lots of airlines beating a trail to our door. We’re going to be pretty choosy. We’re going to pick those that have the same service culture and a great reputation.”
WestJet announced late Monday that Durfy, 43, would step down for personal reasons and that Saretsky, vice-president of operations, would take the helm. Durfy is to stay on and help with the transition until September.
Durfy’s only plans so far are to spend time with his wife, three-year-old son and seven-year-old daughter.
“I like to call it ’Freedom-43.’ So effectively I’m retired,” Durfy said.
In an interview, Durfy said he made his decision to step down after his family experienced some trying times.
He said his wife, Tracy, had a benign brain tumour removed four years ago, and suffered some complications until recently.
“With her health now fully recovered and feeling fantastic, I sat back and we thought about it and said ’What do we need to do?”’ he said, tears welling up in his eyes.
“And what we need to do as a family is spend more time together and that’s why I’m doing what I’m doing.”
The announcement came as a surprise and raised speculation that Durfy was replaced because of the airline’s recent financial performance and operational problems.
Airline industry analyst Rick Erickson said he was “dismayed” by those reports.
“This one I’ll take absolutely at face value that Mr. Durfy’s leaving for personal family reasons,” he said.
“It’s obviously a personal call that he’s made. He’s got young children. I gather he feels his resources are much better spent looking after those affairs.”
The fact that Durfy will aid in the transition until September indicates there was no “coup” involved, Erickson added.
Looking ahead, Erickson said he expects business as normal for WestJet for the next year or so.
“I don’t think we’ll see much over the next full year. I don’t think there will be virtually any change from the direction that WestJet has already carved out for itself,” Erickson said.
“I think it will be a pretty seamless transition over to Saretsky.”
Hiring Saretsky in June 2009 to head up WestJet’s vacations business was a “sage investment” on the airline’s part, because of his managerial experience at now-defunct Canadian Airlines and later at Seattle-based Alaska Airlines, Erickson said. Saretsky took charge of WestJet’s operations in October.
Durfy joined WestJet in 2004 as the executive in charge of marketing, sales and airport operations. He became president in September 2006 and chief executive a year later.
During his tenure, WestJet established the company’s vacations business in the U.S. sunny South, the new reservations system, partnerships with other airlines and new rewards programs.
“I think WestJet is on a very, very steady course right now and by and large has been well positioned to take advantage of whatever the Canadian economy has to offer going forward,” Erickson said. “I would give Durfy his share of credit for that.”
WestJet has grown rapidly in recent years and now provides flights to 55 destinations in Canada, the United States, Mexico and the Caribbean with a fleet 737 aircraft that will soon grow to 88. The company employed nearly 7,500 people at the end of 2008.
Shares of WestJet Airlines Ltd. fell 46 cents or more than three per cent Tuesday to $13.41 in trading on the Toronto Stock Exchange.


