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WestJet, Canada’s second largest airline, said it will launch an ultra-low-cost (ULCC) subsidiary by the end of this year.

“We have built WestJet from its low-cost, regional roots into a renowned, international airline with service to 21 countries, and today it’s all about disrupting at the price-sensitive end of the market,” WestJet chariman Clive Beddoe said in a prepared statement. “Launching a ULCC will broaden WestJet’s growth opportunities and open new market segments by offering more choice to those Canadians looking for lower fares.”

The airline, which thus far has not been given a name, will have an initial fleet of 10 Boeing 737-800s.

WestJet launched in 1996 as a low-cost alternative to Air Canada. In 2012 the company opened its Calgary-based regional subsidiary, WestJet Encore.

The new ULCC will offer an unbundled product, similar in model to Frontier or Spirit.

WestJet must obt ain pilot agreements and regulatory approvals before launching the new airline.

Sоurсе: travelweekly.com