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While Chiang was more optimistic about WestJet’s strategy, writing that he believes it is sound and that expansion of its network is necessary, he said the airline is now “in a period of heightened execution risk.”

“We have concerns over WestJet’s ability to quickly rein in costs or that it has fully accounted for all the necessary investments related to its growth plans,” he wrote.

Some analysts first raised concerns a year ago about WestJet’s ambitious strategy to pursue growth in both the ultra low-cost and long-haul segments, when the airline announced it would purchase at least 10 Boeing 787-9 Dreamliners to expand its international reach.

At the time, Murray said he struggled to see the economic rationale of the wide-body strategy and entering a market where they cannot provide a more competitive offering. A year later, his concerns remain.

“I’m still challenged to understand how they are going to differentiate that product from any number that are already in the marketplace,” Murray said.

“They’ve put a lot of money into this, and already alluded that costs are running ahead of where they thought they would be. They don’t have a fuel cost advantage, they are not going to be buying planes cheaper than anybody else, and then you add labour complications, so you’re left struggling on what’s the rationale for wanting to do this.”

Murray also believes that WestJet’s labour issues will not be restricted to the near-term challenges with the pilots union. The airline is in the midst of negotiating its first agreement with the Air Line Pilots Association International (ALPA), the union which represents 1,500 of its pilots. A vote to authorize strike action is largely expected to pass with support this week, and pilots could strike as early as May 19.