WestJet boss makes the case for ‘foundational reform’ to Commons transport committee
In a letter to members of the House of Commons Transport Committee, WestJet’s CEO Alexis von Hoensbroech outlined a number of initiatives that the airline has taken that are designed to “deliver choice and affordability” to Canadian travellers.
But he also pointed out that the company “cannot solve the issue of airline affordability alone,” in fact, he writes “our efforts have been undermined by government policies and third-party fees and taxes.”
WestJet’s CEO writes:
“For more than 28 years, WestJet has been committed to providing Canadians with affordable options to connect with their loved ones, pursue work opportunities, and explore the world. WestJet has long been, and remains today, the driving competitive force that has democratized air travel in Canada, making it more accessible and affordable for all Canadians.”
“Air travel is essential to Canada. It drives economic development and, given our country’s vast size, connects communities in ways no other mode of transportation can,” he continued.
And he continues:
“At WestJet, we are doing our part. In June, we introduced Ultra Basic, a new fare offering Canadians 14% savings on average compared to previous fares for those traveling with just a personal item, like a backpack. Since its launch, over a million Canadians have chosen Ultra Basic without choosing to check a bag, allowing them to feel the full benefit of the new lower fare.”
And von Hoensbroech adds:
“Ultra Basic is just one of many steps WestJet has taken to deliver choice and affordability to consumers. Together, these efforts have contributed to a 50% inflation-adjusted reduction in airfares over the past 30 years.”
The carrier’s boss continues:
“However, we cannot solve the issue of airline affordability alone. Our efforts have been undermined by government policies and third-party fees and taxes, which have risen by 65% since 1996. Today, before travelers even buy their tickets, taxes, fees, and charges can add up to $99 per ticket—costs that are neither optional nor transparent. These hidden fees, including navigation, security, and airport improvement charges, make Canadian air travel among the most expensive globally—more than triple the fees in the U.S.”
He notes that:
“Canada’s air travel market is strong, but it can be better. Unlike other modes of transportation, air travel in Canada is entirely funded by its users. To address this, we propose the following:
1. Acknowledge the need for foundational reform: The current structure of fees, charges, and taxes for air travel in Canada is unsustainable. Many countries provide world-class infrastructure and service at much lower costs. Canadian policy should aim to do the same.
2. Freeze further cost increases: Halt additional hikes in fees and charges.
3. Cease federal rent collection from airports: Allow airports to reinvest these funds into infrastructure, services, or debt repayment.”