WestJet begins rewards program

CALGARY - WestJet Airlines Ltd. appears to have finally launched its long-awaited rewards program, but the initiative is already getting mixed reviews from frequent flyers.

Canada's second-largest airline has been planning its own credit-card loyalty program after dropping its previous agreement with BMO/ Air Miles. But the launch suffered setbacks since its original timeline of last June, most recently by problems with the implementation of the Calgary-based airline's new reservation system.

Details of the new program -- called Frequent Guest -- were posted on WestJet's website this week. A WestJet spokesman said the program will be officially launched next week.

Unlike other programs under which travellers collect points for miles flown, WestJet flyers receive credits after accumulating $1,500 in WestJet travel annually. Those credits can be used toward any future WestJet flights, with no blackouts or travel restrictions.

Frequent flyer groups called the program "average," noting it will probably attract travellers not loyal to any one airline.

But it has fewer perks than rival programs, such as Aeroplan, which cater to the business crowd, said Patrick Sojka, head of RewardsCanada.ca,a Calgary-based website.

"You're losing out on business class upgrades, you don't have business class lounge access," he said.

"Those people who get that with Aeroplan won't be making the move."

WestJet has previously announced a partnership with RBC for a branded MasterCard credit card as part of the program.

Loyalty programs are seen as key to attracting corporate travellers, a sector WestJet has aggressively targeted in recent years.

One analyst said WestJet has definitely lost out on traffic to its main competitor, Air Canada, because of the lack of loyalty perks.

"These programs are wildly popular," said Rick Erickson, a Calgarybased independent airline analyst.

"I think WestJet has left a fair amount of incremental revenue on the table at a time when both Canadian carriers are so aggressive fare wise, price wise, in what is still a distressed sector."

But he also noted the airline does appear to be setting a new course by tying the rewards to dollars spent and setting a higher level before credits start to accumulate.

"It's more clever in that sense," Erickson said.

"They're allowing their system to start up without having to pay any rewards right away."