The Alberta government and WestJet have announced a memorandum of understanding with the goal of making Alberta a bigger player in the aviation industry.
The agreement will see the Alberta government invest $73 million over five years to boost tourism to the province and support the aviation industry. For its part, WestJet says it will designate its home base at Calgary International as the primary connecting hub within its network.
"Alberta has been WestJet's home for 26 years and today's historic agreement builds upon an existing foundation of low taxes and investment-friendly policies. As Western Canada's home team carrier, Alberta is an area where we want to continue to invest to secure WestJet's thriving future," said WestJet Group CEO Alexis von Hoensbroech.
Part of the government's $73 million investment will go toward Mount Royal University's aviation program to train pilots and expand its hangar. It will also expand bursary and student loan programs for pilot and aviation maintenance personnel training - areas where there is a critical shortage of staff.
"We're facing a major global shortage of pilots," said Alberta Premier Jason Kenney. "Alberta wants to embrace the opportunity of this investment by becoming a major source of skilled new pilots for WestJet and the entire industry."
Kenney called the announcement "a blockbuster day for Alberta and a game-changer for our economy." He added: "By choosing Calgary as its single global hub, locating its entire Dreamliner fleet here, and increasing its annual seat capacity by 80%, WestJet will massively improve global connectivity, tourism and options for passengers."
Travel Alberta, the province's tourism marketing arm, will benefit from an increase in marketing funding. They'll receive $10 million annually over five years, up from $6.5 million.
"Today is a proud day for our organization as we continue to strengthen our home province with four distinct advantages: affordability, sustainability, infrastructure and people," von Hoensbroech said.
"This agreement is a testament to WestJet's commitment to our global hub airport in Calgary, as investments like this can only occur under the right commercial and operational environments. YYC Calgary International Airport is providing us that confidence and with these investments, Calgary can become North America's most connected mid-sized city."
By summer 2023, WestJet will base all of its 787 Dreamliners in Calgary, making it the airline's sole hub for intercontinental travel.
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