WestJet CEO Speaks

[Kip Powick]

The incoming chief executive at WestJet Airlines Ltd. says to look for "more of the same" strategy as he takes over from Sean Durfy.

That means a continuing emphasis on southern U.S. destinations, which have been "an absolute home run" for the Calgary-based company even through the depths of the recession, says new chief executive Gregg Saretsky.

Saretsky takes over on April 1, when Durfy will formally resign from the board, though he'll stay until Sept. 1 to help the transition.

Rejecting suggestions he was being ousted because of lagging profits, Durfy said: "There's no coup. I'm here. If it was a coup I'd be out the door, I think.

"We've had some health issues in our family for the last four or five years. And with everyone at 100 per cent, you only get a couple of chances in life to really enjoy your kids and your wife."

Air industry consultant Rick Erickson said Durfy's performance has been "utterly competent."

WestJet has fared better than many airlines because of Durfy's decision to concentrate on serving U.S. and Caribbean sun destinations, Erickson said.

"That kept his airplanes flying when many airlines worldwide were parking their airplanes in the desert as traffic precipitously dropped. That wasn't the case with WestJet."

Saretsky says he'll stay the course the airline has been following.

"The WestJet brand is so well recognized by consumers that we put metal in markets and people come," he said. "We're looking for more of the same."

Erickson suggested that Saretsky, who joined WestJet from Alaska Airlines in 2008, will have to make some decisions in the future about expanding WestJet service beyond North America. That would mean buying new aircraft.

But Saretsky said for the moment WestJet is focusing on expanding intercontinental service through partnership agreements with other airlines. It has forged deals with Air France-KLM and Southwest Airlines.

"There are other airlines with whom we have letters of agreement that are not yet implemented but are part of our plan for 2010," he added.

WestJet's profits for the most recent quarter were thin, dropping to 11 cents a share from 33 cents a year earlier. But Erickson said the airline deserves credit for making any money at all.

"Go and find me 10 other airlines in North America who made a profit," he said. "Try to find me five."

He pointed to a recent speech by Air Canada chief executive Calin Rovinescu, in which he noted that the head of the International Air Transport Association called 2009 "the worst year ever" for the industry in terms of lost traffic.

WestJet shares dropped 56 cents to close at $13.31 on the TSX Tuesday