Canadian airline provides aircraft to Cargojet, parks others.
WestJet has abandoned its scheduled freighter operation and put two of four Boeing 737-800 aircraft in storage one year after launching the business venture, according to the executive in charge of the airline’s cargo operations.
The development is a tacit acknowledgement by WestJet that it can’t compete in the challenging Canadian cargo market. Air Canada last week disclosed it has parked two new factory-built 767-300 freighter aircraft because of insufficient demand.
Two 737-800 converted freighters are in long-term storage, and the other two are operating daily charter service for Cargojet between Newark International Airport in New Jersey and Bermuda, said Kirsten de Bruijn, WestJet’s executive vice president of cargo, in an email message.
Cargojet, Canada’s largest all-cargo airline, previously provided Bermuda charter service for several customers with a Boeing 757 freighter. WestJet is now leasing Cargojet the smaller 737-800 cargo aircraft and providing the crew to operate the route.
Cargojet is allowed to operate from the U.S. to Bermuda because it has authority to operate from Bermuda’s civil aviation regulator, which negotiated the route with the U.S. Department of Transportation.
The aircraft are based in Newark and periodically return to Toronto for scheduled maintenance. WestJet sells space for the Newark-Toronto leg based on demand, de Bruijn explained. It also operates scheduled service from Toronto to Havana every other week, based on demand.
The two aircraft are parked at Halifax Stanfield International Airport in Nova Scotia, according to WestJet’s cargo chief. FlightAware, a site that tracks aircraft movements, shows the freighters have been out of service since February and March.
“WestJet has adjusted its air cargo strategy in response to market conditions. It was determined that the freighters would be better optimized for charters, partnerships, and operating specific routes on an ad hoc basis,” de Bruijn told FreightWaves. “Consequently, we have shifted away from regular network flying with the 737-800 converted freighter between Canadian and U.S. cities.”
Canada’s second-largest passenger airline has also suspended its contract flying for Mexico-based startup airline Awesome Cargo. Under the arrangement that began in December, WestJet freighters carried two-way traffic between Los Angeles and Awesome’s terminal outside Mexico City where it could be transferred to and from A330 freighters operating across Latin America. Awesome Cargo remains WestJet’s U.S. general sales agent, marketing export capacity on WestJet passenger aircraft, primarily out of Los Angeles, according to de Bruijn.
WestJet Cargo has not reduced or reassigned staff because of the strategic shift and is striving to generate new opportunities, she added.
The airline leases the 737-800 freighters from BBAM Aircraft Leasing and Management. De Bruijn said a permanent decision about what to do with the aircraft has not been made.
WestJet Cargo will evaluate these options based on market conditions and strategic priorities to determine the most effective path forward for our freighters. Decisions on whether to sell or transition to an ACMI operation will be made accordingly,” she said.
Changing cargo strategy
WestJet introduced commercial freighter operations with a single aircraft in April 2023 after a 10-month delay getting approval from Transport Canada for the structural modifications required to convert the used 737-800s into all-cargo aircraft. WestJet didn’t have all four cargo jets operating until September 2023.
The initial network consisted of daily routes between Toronto and Miami, and Vancouver, British Columbia, and Los Angeles, with intra-Canada connections to Calgary, Alberta, and Halifax. Later, WestJet mixed in three flights per week between Los Angeles and Guadalajara, Mexico, and between Los Angeles and Calgary.
The investment in four long-term leases for 737-800 passenger-to-freighter aircraft and the hiring of de Bruijn from Qatar Airways to build up the cargo business gives an idea of how seriously WestJet took the idea of becoming a significant player in airfreight. Operating all-cargo jets involves different processes than moving cargo in the lower deck of passenger aircraft. Other startup costs included developing training manuals, equipment and capabilities, recruiting air cargo managers from other airlines and incorporating IT systems to become a full cargo organization.
WestJet’s freighter division opened for business just as the airfreight market rapidly cooled from the hot demand during the COVID crisis and fell into a prolonged recession.
WestJet has decided to pause its dedicated freighter operations just a year after launching them, placing two out of its four Boeing 737-800 freighter aircraft in long-term storage. This move highlights the difficulties in competing in Canada’s air cargo sector. The remaining two aircraft are being used for charter flights, operating between Newark International Airport and Bermuda on behalf of Cargojet, Canada’s largest all-cargo airline. WestJet leases the freighters to Cargojet and provides the crew to manage the flights. Previously, Cargojet had used larger Boeing 757 freighters on this route, but the shift to smaller aircraft seems to be part of a broader realignment of strategies by both companies.
WestJet’s entry into the freighter market faced multiple challenges. Although it began commercial operations in April 2023 after receiving delayed approval from Transport Canada for converting the used aircraft, the airline did not have all four freighters operational until September 2023. Initially, the airline served routes between Toronto, Miami, Vancouver, Los Angeles, Calgary, and Halifax, with further expansions into Mexico.
However, the timing of WestJet’s freighter launch coincided with a significant downturn in the air cargo market, which had been booming during the COVID-19 pandemic. The airline had invested heavily in setting up the freighter division, including long-term leases on the converted aircraft and the recruitment of experienced air cargo professionals, such as Kirsten de Bruijn from Qatar Airways. Despite these efforts, market conditions forced the company to shift its focus away from regular network operations toward charter services and partnerships like the one with Cargojet.
In addition to its partnership with Cargojet, WestJet had also been flying for Awesome Cargo, a Mexican startup airline. Under this arrangement, WestJet’s freighters carried cargo between Los Angeles and Mexico City, with transfers to A330 freighters for wider distribution across Latin America. However, this contract was also suspended, although Awesome Cargo continues to market WestJet’s export capacity on passenger flights from Los Angeles.
Despite the strategic shift, WestJet Cargo has not reduced its staff and is still pursuing new opportunities. The future of the stored aircraft is unclear, with de Bruijn indicating that the company will evaluate its options, including possibly selling the freighters or transitioning to an ACMI (Aircraft, Crew, Maintenance, and Insurance) leasing model, which allows operators to offer services without the upfront investment of owning an aircraft.
This move marks a significant change in WestJet’s cargo ambitions. While the airline had high hopes for entering the cargo market, the prolonged downturn and stiff competition have led to a reevaluation of its strategy. It remains to be seen whether WestJet will continue in the cargo sector long-term or look for other opportunities to utilize its freighter fleet.