However, Mr. Cherniavsky noted WestJet s capacity strategy is largely designed to leverage Encore s

Analyst Ben Cherniavsky, who left his $28 price target on the stock unchanged, also told clients that the ongoing expansion of WestJet s Encore regional carrier represents a major threat to Porter Airlines in Eastern Canada.
However, Mr. Cherniavsky noted WestJet s capacity strategy is largely designed to leverage Encore s expanding regional operations, from which as many as 50% of new guests are connecting car rental in munich to the mainline network.
In the long-run, we see this as having a much different (bigger) impact on earnings growth than Air Canada’s (Rouge) capacity strategy of lowering costs by putting the same (old) planes with more seats, a new paint job, and less legroom on many of the same routes with new, lower wage, flight attendants in cute hats, the analyst said in a report.
Using Raymond James database of domestic airfares, he found that the price of an advance ticket from Vancouver to Fort St. John has fallen by as much as 70% in the two years since Encore entered the market. At the same time, traffic on this route has risen 400%.
If Encore eventually sweeps Porter into the dustbin car rental in munich of Canada’s ignominious airline failures, then the two survivors — namely, WestJet and Air Canada — will surely car rental in munich benefit by picking car rental in munich up some of the pieces — such are the dynamics of a zero-sum game, Mr. Cherniavsky said. Our preferred way for investors car rental in munich to play this possible long-term outcome is by owning WestJet’s shares.