WestJet Seeking Approval from Transport Canada to offer Flights to China

This is essentially a follow up to WestJet’s plan to buy Boeing 787 Dreamliners so that they can offer more international flights. WestJet has decided to take the next step by asking for approval from Transport Canada to offer direct flights to China.

Any time we see more direct flights leaving Canada can only be good news. Any time you can increase the competition by adding more routes, it will only be beneficial to consumers.

Demand and supply 101. As the supply increases, the prices can drop. But if the prices drop too low or demand decreases, airlines will need to shut down a route, which will probably increase the price from the remaining airlines. It is never easy to find that right balance between fair profitability for a company, versus fair pricing for consumers. Either way, for the time being, being able to increase the supply in the market is a positive step.

I just hope that Transport Canada makes this an easy decision. I suspect that their main challenge is determining whether there is enough demand on this route for all the airlines to continue to participate. Bottom line is that I am glad to see WestJet taking some bold moves. They want to take some risks by expanding their product line, which is always great to see!

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