Flush with rosy first-quarter results, WestJet’s CEO is downplaying the launch of Air Canada’s rival ZIP Air Inc.

“They (Air Canada) have thrown (discount carrier) Tango at us and that hasn’t hurt,” said Clive Beddoe during a conference call with analysts prior to WestJet’s annual general meeting last Thursday.

As for the no-frills ZIP, “. . . we don’t see it having any impact on WestJet,” Beddoe said.

“It may be positive for us in that the playing field may be levelling out,” he said, noting that ZIP has announced lowered service standards but said nothing about fares yet.

ZIP said earlier in April it will begin operations this summer between Vancouver and Calgary, replacing existing full-service Air Canada mainline flights.

With the disappearance of the mainline flights, people who have only flown Air Canada may look at ZIP as offering less than what WestJet provides, Beddoe suggested. “We may well see a migration . . . onto WestJet.”

Profits at the airline rose 22.4 per cent in the first quarter of 2002, its 21st profitable quarter, to $7.1 million from $5.8 million at the same time last year. The airline’s earnings per share also increased, to 15 cents in 2002 from 13 cents during the same period in 2001.

It isn’t all smooth flying for the airline, however. WestJet is cutting 13 flights a week between Calgary and Edmonton by early summer.

Traffic has slumped on all the airline’s short-haul routes and WestJet must cut costs accordingly, Beddoe said. WestJet has 100 flights a week on the Calgary-Edmonton route.

WestJet currently flies into 21 Canadian airports. It is adding Toronto to its roster on May 23. Bookings for service to Toronto have been “extremely strong,” Beddoe added.

In the wings are flights to Montreal, Halifax and St. John’s later this year. To accommodate its expanding network, WestJet is taking delivery of nine more 737-700 aircraft this year, in addition to one acquired in February.

Meanwhile, the Calgary Strategic Leadership Forum has named Beddoe as the recipient of its 2002 President of the Year Award.

Presented annually to the president or CEO of a Calgary-based organization that has demonstrated sustained leadership and results, the award will be made at the President’s Dinner May 22 at the Palliser Hotel.

This is the second year the SLF, a business association with about 200 members in Calgary, has broken with the tradition of presenting the award to leaders in the oil and gas sector.