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New WestJet discount airline ‘may be based outside of Calgary’

A Boeing 737 (737-700) airliner, belonging to WestJet Airlines, in Calgary in 2014. THE CANADIAN PRESS IMAGES/Larry MacDougal

Less than a week after WestJet announced the launch of its new no-frills, low-cost airline will be delayed until next summer, the company says it’s looking into the potential of a different home base for the discount operation.

READ MORE: WestJet names executive vice-president for new ‘ultra-low-cost carrier’

“WestJet’s ultra-low-cost carrier may be based outside of Calgary as we are also considering locations that would allow us to take advantage of lower-cost markets,” spokesperson Lauren Stewart wrote in an email to Global News.

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Stewart added no decision had been made as of Aug. 7.

“We are continuing our work on this and other elements related to the launch of the airline — namely the organizational structure, routes, schedules, service offering and branding,” Stewart said.

READ MORE: Here’s why low-cost airlines have a tough time surviving in Canada

She said WestJet’s plan for the ultra-low-cost carrier is to minimize costs and pass savings to consumer, “while unbundling all products and services so they can choose that which is most relevant for their trip.”

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The company recently reported it earned $48.4 million or 41 cents per diluted share in its latest quarter, up from $36.7 million or 30 cents per diluted share in the same quarter last year.

With files from The Canadian Press

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