Here comes another discount airline, and Wall Street isn’t happy

WestJet Airlines began life 21 years ago as a low-cost airline in the Southwest Airlines vein: low fares and minimal frills. Over the years, as it sought to compete and grow, the frills, fares, and costs grew along with it. Now the carrier isn’t only headed back to its discount roots, it’s digging even deeper. The airline is planning to tackle the cheapest segment of the air-travel market by launching a ULCC modelled on Ryanair. WestJet describes the move as defensive, intended to fend off incursions from rivals and helping stem the flow of some 5.5m Canadian leisure travellers who cross the border to fly bargain airlines such as Allegiant Travel and Spirit Airlines. This domestic leakage has spurred entrepreneurs to consider starting other ULCCs in Canada, a nation notorious for steep aviation operating costs and airfares. <br/>