WestJet Trims 1,000 Workers and Cuts Routes by 30%: Blames Trudeau Travel Restrictions

WestJet Trims 1,000 Workers and Cuts Routes by 30%: Blames Trudeau Travel Restrictions

January 8, 2021 Jim Byers

Faced with new testing rules from the Liberal government in Ottawa, WestJet today said it will have to slash its routes by one-third and reduce their workforce by 1,000 employees.

The airline said the moves come as it “continues to face volatile demand and instability in the face of continuing federal government travel advisories and restrictions.”

“As a result of the reduction in capacity, the equivalent of 1,000 employees across the WestJet Group of Companies will be impacted through a combination of furloughs, temporary layoffs, unpaid leaves and reduced hours,” said officials at the Calgary-based company. “There will also be a hiring freeze implemented.”

“Immediately following the federal government’s inbound testing announcement on December 31, and with the continuation of the 14-day quarantine, we saw significant reductions in new bookings and unprecedented cancellations,” said Ed Sims, WestJet President and CEO. “The entire travel industry and its customers are again on the receiving end of incoherent and inconsistent government policy.”

The Justin Trudeau government last week announced that, starting January 7, any traveller over the age of five has to present a negative PCR COVID-19 test before they can fly to Canada.

“We have advocated over the past 10 months for a coordinated testing regime on Canadian soil, but this hasty new measure is causing Canadian travellers unnecessary stress and confusion and may make travel unaffordable, unfeasible and inaccessible for Canadians for years to come,” Sims said.

“Regrettably, this new policy leaves us with no other option but to again place a large number of our employees on leave, while impacting the pay of others. This is a cruel outcome for loyal and hardworking staff who have been diligently working through the pandemic.”

Air Canada says it has nothing similar to announce, at least not right now.

“We continually evaluate our network schedule, particularly with the effect of stifled demand from ongoing travel restrictions and quarantine rules, but we have nothing to announce at this time,” a spokesman told Canadian Travel News.

With today’s announcement WestJet will remove approximately 30 per cent of its currently planned February and March capacity from the schedule, a more than 80 per cent reduction year over year. In addition, the airline will reduce domestic frequencies by 160 departures as frequently evolving advisories, travel restrictions and guidance continue to negatively impact demand trends.

Any impacted guests will be contacted directly.

The impact will be felt by a large number of Canadian workers. But it’s also a blow to hospitality industry and tourism workers in places where WestJet will curtail or eliminate service, including Barbados, Antigua, Arizona, California and several destinations in Mexico.

“The Canadian government’s advisory on avoiding non-essential travel continues to deeply impact the tourism industry – placing much pressure on the network of airlines and no doubt contributing to the route changes that have been articulated by WestJet,” said Peter Mayers, Director, Canada, Barbados Tourism Marketing Inc. “We share the wide sentiment of displeasure for how the pandemic has disrupted the many joys of life, including travel.

“However, we are optimistic to see an eventual end to COVID-19’s global havoc and at this time, are encouraged by the hands-on nature of our partners who are working meticulously to manage ongoing changes at a moment’s notice,” he said.

Network impact by the numbers:

With the planned reductions, WestJet will operate at a more than 80 per cent reduction year over year.
Specific to international markets, capacity will be down 93 per cent year over year where the airline will be operating only five daily flights compared to 100 last year
Elimination of more than 230 weekly departures (including 160 domestic) and removal of more than 30 per cent of capacity versus prior months.
Suspension of 11 routes (Edmonton-Cancun, Edmonton- Puerto Vallarta, Edmonton-Phoenix, Vancouver-Cancun, Vancouver-Phoenix, Vancouver-Puerto Vallarta, Vancouver-Cabo, Vancouver-Los Angeles, Vancouver-Palm Springs, Calgary-Las Vegas, Calgary-Orlando).
Seasonal suspension of 13 international and transborder destinations (Antigua, Aruba, Barbados, Bonaire, Huatulco, Ixtapa, London (Gatwick), Mazatlán, Nassau (Bahamas), Port of Spain, San Jose (Costa Rica), Tampa, and Turks and Caicos.
The airline will operate approximately 150 daily departures, returning to levels not seen since June 2001.