Canjet

Kandoo · Post by **Kandoo** » Wed Oct 11, 2006 9:05 am

"CanJet charter agreements confirmed"
HALIFAX, Oct. 11 /CNW/ - CanJet Airlines is pleased to announce that
details of its charter agreements with Sunquest Vacations and Transat Tours
have been confirmed for the 2006/2007 season.
Julie Gossen, Executive Vice-President & Chief Operating Officer, CanJet
Airlines, stated "I am very pleased to announce that CanJet has finalized
agreement details with Sunquest Vacations of Toronto and Transat Tours Canada
for the provision of charter flights to 10 popular sun spot destinations. We
have developed a strong working relationship with Sunquest and Transat over
the past few years and I am delighted that we are in a position to provide
aircraft uplift for their winter package programs."
Chris Kelly, Director, Finance & Strategic Planning, confirmed that
CanJet will operate charter flights from Halifax, Montreal, Quebec City and
Toronto to fun sun spots in Cuba, Mexico, the Dominican Republic, the Bahamas
and Jamaica beginning in early November and continuing into the spring of
2007. He went on to say, "Between early November and the spring of next year,
CanJet will operate over 1,000 flights to and from Mexico and the Caribbean
with our fleet of 737-500 series aircraft which feature an average seat pitch
of 32 inches. These agreements are a very important and pivotal first step in
developing CanJet's charter business going forward."

CanJet Airlines is a division of IMP Group Limited, Halifax, Nova Scotia,
one of Canada's Top 50 Best Managed Companies and one of Canada's largest
aviation and aerospace companies. The airline division provides charter
services with a fleet of Boeing 737 aircraft. Customers can request charter
quotes on-line at http://www.canjet.com or by contacting CanJet's Charter Division at
(902) 873-7800 ext. 7887.

For further information: Wayne Morrison, Director, Corporate & Public
Relations, (902) 873-7884, wayne.morrison@canjet.com

CanadaEH · Post by **CanadaEH** » Wed Oct 11, 2006 11:13 am

Well that should keep you guys busy.

Guessing CanJet will go after that contract

Good luck with that. Canjet can't provide the lift WS currently does and will continue to provide as more aircraft enter the fleet. Out of our fleet of 60'ish aircraft, we have 27-29 aircraft operating at least one charter flight on Saturdays; some do two in the same day. It'll be interesting to see how talks between WS and TS go next summer/fall with the apparent interest from Canjet to "go after" the contract.

737daytripper · Post by **737daytripper** » Wed Oct 11, 2006 1:42 pm

With all due respect to WestJet in their present form, when they first got the Transat contract they could not provide the lift that they give Transat today. Should Canjet get the Transat contract I would expect them to increase the lift they provide to Transat over the term of the contract.

I agree, the negotiations will be interesting. I would just to like hear something now from flt ops or the union as to when to expect a callback.

Luscombe · Post by **Luscombe** » Wed Oct 11, 2006 1:43 pm

So I guess this means that IF I get recalled, and IF this actually happens, I can look forward to another couple of months of employment before the next layoff come spring '07. Looks promising in the short run, but kinda sucks in the long run.

I'd be interested to see how great employee morale is going to be with CanJet version 2.1.

OK, I'll have a little cheese with that whine.

rickenbacker · Post by **rickenbacker** » Wed Oct 11, 2006 3:55 pm

I prefer Canjet 2.5. We should at least try to agree on what to call the new entity!!

CanadaEH · Post by **CanadaEH** » Wed Oct 11, 2006 4:28 pm

With all due respect to WestJet in their present form, when they first got the Transat contract they could not provide the lift that they give Transat today. Should Canjet get the Transat contract I would expect them to increase the lift they provide to Transat over the term of the contract.

I'm going back a few years so correct me if I'm wrong..

Prior to 9/11, Transat had Air Transat doing all of its flying on various types of aircraft: 727, 757, 320, 310, and 330's. At this time I don't believe that Transat started contracting flying until post-9/11 when Air Transat restructed and got rid of its 757 and 320 fleet (the 727's had already been retired, IIRC). Westjet was contracted to do some flying, and I don't recall whether any other airlines were as well.

When Transat and Westjet entered into a partnership, the first right of refusal was put in place and Westjet agreed to drop all contracts with other tour operators (such as Signature - which was the first tour operator to contract WS for flights to LAS). With an exclusive product offering to Transat, Transat grew by aquiring foreign tour operators and expanding its Carribean offering through a growing WS fleet. Over the years, Transat has grown to become the largest or the second largest tour operator in Canada (depending on the region).

So while you are correct in saying that WS couldn't provide the lift initially, I'd argue that the situation won't be the same for Canjet. I said in my last post that WS has 27-29 aircraft operating at least one charter flight on Saturdays - can Canjet do the same? Sure Canjet could aquire some additional aircraft but growing to a size equal to WS would be suicide if Canjet doesn't have scheduled service to utilize aircraft around the charter flying.

For Transat to split narrowbody flying between Canjet and Westjet would, IMO, put its product at a competitive disadvantage. WS's product offering of LiveTV - which, to some, isn't a big deal - and increased legroom is a major advantage for Transat over Skyservice, which is Transat's largest competitor (Sunquest).

I think that you'll see Transat and Westjet extend its partnership and continue to grow its Carribean charter program as they have for a few years now. Westjet wil likely be able to provide additional lift next winter which will not help Canjet's position in terms of securing a large chunk of charter work. Some would argue that Westjet wants to grow into the Carribean with scheduled service and "get out" of its Transat partnership but I don't see that. While WS will probably expand its offering of Carribean destinations (schedule, not charter) next winter, it's contractually acceptable for WS to fly anywhere Transat doesn't fly.

All just my opinion...

flynbutcher · Post by **flynbutcher** » Wed Oct 11, 2006 5:02 pm

EH CANADA, who cares about your analysis of WJ and CJ and Transat and Sunwing

......Your theory was already proven to be wrong. stop trying to save face and get on to something else. Maybe be thankful that a few good people here on the east coast might get back to work.

Troubleshot · Post by **Troubleshot** » Wed Oct 11, 2006 5:20 pm

OK so CanJet is giving it a try !!! good stuff. So say that they get more flying from Transat or Sunquest does this mean we will see some bigger aircraft for CanJet?? I am not sure about the leases on those -500's but aren't they due in 2007 sometime?

Maybe we will see big contracts in 2007, then public offering, then big/new jets...interesting news.

Good luck to you all !!!

WhiteBeacon · Post by **WhiteBeacon** » Wed Oct 11, 2006 5:26 pm

Couldn't agree with you more. If the Kood Aid kids wanna kick and scream about who is best they can have it. When do I get back to work is all I wanna know.

flyin' fish · Post by **flyin' fish** » Wed Oct 11, 2006 7:10 pm

another rumour.........Transat is pushing CanJet to purchase Airbus' for the long term, like 319's or 320's. If that's happens, it will certainly solve CanJet's "lift problem". Don't you agree CanadaEH??

Huge Hammer · Post by **Huge Hammer** » Wed Oct 11, 2006 9:17 pm

another rumour.........Transat is pushing CanJet to purchase Airbus' for the long term, like 319's or 320's. If that's happens, it will certainly solve CanJet's "lift problem".

I guess the question is then what does Canjet do with all of that lift during the week and when it is not charter season. I suppose they one option is to go back into sched service as that equipment is not really suitable for European charters.

Either way best of luck to all the CJ folks.

CanadaEH · Post by **CanadaEH** » Wed Oct 11, 2006 10:29 pm

another rumour.........Transat is pushing CanJet to purchase Airbus' for the long term, like 319's or 320's. If that's happens, it will certainly solve CanJet's "lift problem". Don't you agree CanadaEH??

It'll open up some more routes and destinations, that's for sure. What number of aircraft are you hearing?

EH CANADA, who cares about your analysis of WJ and CJ and Transat and Sunwing ......Your theory was already proven to be wrong. stop trying to save face and get on to something else. Maybe be thankful that a few good people here on the east coast might get back to work.

Sorry buddy, didn't mean to hit a nerve. I've never had a problem with Canjet and still don't so if you think I've got an axe to grind you're mistaken. I figured that I'd offer my opinion to some pilots out there that are looking to the future to see where Canjet may be headed. No harm in that. People can either listen to my opinion or ignore it.

Cheers

Bleed Air · Post by **Bleed Air** » Thu Oct 12, 2006 12:20 am

Perhaps Canjet will in the summer (when the charters in the low season), ship some a/c overseas like Skyservice and Sunwing do, and operate a domestic charter service, like the other two. As long as the prices are right people will all but forget about them closing their doors short notice. Because when it come down to it the Canadian travelling public loves to save a buck and has very short memories.

rickenbacker · Post by **rickenbacker** » Thu Oct 12, 2006 3:21 am

Canjet doesnt have a really bad mark against its name. What did they do? They announced a stop to their domestic service. They gave a warning (a small one) and then refunded the money. No one was left at a terminal, or another country and no one was cheated out of their money. There might be a thousand or so people that had to rebook at a higher fare and are a bit pissed but in the scheme of things thats small.
Air Canada and Westjet have both raised their fares, that hasnt gone unnoticed. It's justified, the fares have to reflect the cost of business but the public still sees it as a money grab. If Canjet comes back with a domestic charter service the public will see one thing, cheaper fares. They won't have a problem filling seats. The public will see a return of a good product at a lower fare then whats offered.

eastdude · Post by **eastdude** » Thu Oct 12, 2006 4:05 am

rickenbacker wrote:Canjet doesnt have a really bad mark against its name. What did they do? They announced a stop to their domestic service. They gave a warning (a small one) and then refunded the money. No one was left at a terminal, or another country and no one was cheated out of their money. There might be a thousand or so people that had to rebook at a higher fare and are a bit pissed but in the scheme of things thats small.
Air Canada and Westjet have both raised their fares, that hasnt gone unnoticed. It's justified, the fares have to reflect the cost of business but the public still sees it as a money grab. If Canjet comes back with a domestic charter service the public will see one thing, cheaper fares. They won't have a problem filling seats. The public will see a return of a good product at a lower fare then whats offered.

I think you're mestaken rickenbacker. You said that ' if Canjet comes back with a domestic charter service the public will see one thing, cheaper fares.' Canjet won't set the price for the fares the tour copmpanies will. What Canjet will do for the tour companies is offer lift that needed to be filled. If Canjet is ceaper the customer won't see it, just that the tour companies will see greater profit.

I think it is great that there is some work for some people over the next comming months. Lots of good people with familes that can benifit from this. Just my opinion but I wouldn't be to surprised if Canjet offers a summer sked service. We all know that if you have a plane going from the rock to Halifax and Toronto you will fill it. Canjet always had fantastic loads from YYT and YDF.

Kandoo · Post by **Kandoo** » Thu Oct 12, 2006 5:06 am

I believe Mr. Rowe already stated his intentions.
Mr. Rowe stated that CanJet personnel will focus their energies on securing charter flying opportunities but he did not rule out a return to scheduled service. He said, “Moving forward, we may look at providing scheduled services during peak times on city pairs which have profit potential but I want to emphasize that our primary focus will be the charter business.”

rickenbacker · Post by **rickenbacker** » Thu Oct 12, 2006 5:56 am

There seems to be some confusion between a sched service and a domestic charter service...There was mention in one of the articles of a domestic charter service...not sched service. There's nothing to stop CJ from doing a domestic charter wherever they like during the slow season. CJ won't get back into the sched domestic service, there's too much risk and competition. They'll just do the domestic charters (on their own)during the sweet spots when there isn't enough business from Transat, sunwing or the like. I also think this is just a test for Transat and sunquest. Short term contract to see how CJ performs.
There's no limit to what CJ can do, they have everything in place. The big question is how much stamina the Old Man has.

eastdude · Post by **eastdude** » Thu Oct 12, 2006 6:00 am

Actually rickenbacker, during the press conference he mentioned that that they will focus on the charter market but can look at doing a limited sked service while not on peak charter season. Don't have the quote but the one above i think was pretty much it.

55+ · Post by **55+** » Thu Oct 12, 2006 7:27 am

Interesting to note in the release dated October 11/06 on this charter announcement that point of departure for the Maritimes is CYHZ. So………. People from NB, PEI are going to have to make their way to CYHZ to take advantage of these GREAT SUN-SPOT destinations. Savvy consumers can use the medium we are on to do a little research or failing that contact a good travel agency. When they factor in the cost of gas from say CYQM, CYFC, CYYG(plus the toll for the bridge) plus parking at CYHZ, maybe an overnight at CYHZ, and that Air Canada also offers GREAT-SUNSPOT destinations, well you get my drift………… A little research and comparison you would be quite surprised to know that a drive to CYHZ to catch that weird departure time to that GREAT SUNSPOT certainly may not be necessary.

In the meantime, good luck to the 2.5V of CanJet!

Troubleshot · Post by **Troubleshot** » Thu Oct 12, 2006 9:18 am

55+ wrote:Interesting to note in the release dated October 11/06 on this charter announcement that point of departure for the Maritimes is CYHZ. So………. People from NB, PEI are going to have to make their way to CYHZ to take advantage of these GREAT SUN-SPOT destinations. Savvy consumers can use the medium we are on to do a little research or failing that contact a good travel agency. When they factor in the cost of gas from say CYQM, CYFC, CYYG(plus the toll for the bridge) plus parking at CYHZ, maybe an overnight at CYHZ, and that Air Canada also offers GREAT-SUNSPOT destinations, well you get my drift………… A little research and comparison you would be quite surprised to know that a drive to CYHZ to catch that weird departure time to that GREAT SUNSPOT certainly may not be necessary.

In the meantime, good luck to the 2.5V of CanJet!

Plus Sunwing and Transat provide sun destinations direct outta Moncton and Sunwing also outta St. john, NB, Fredriction, NB and Charlottetown, PEI...so the driving to YHZ is not always required.

Metro-Sexual · Post by **Metro-Sexual** » Thu Oct 12, 2006 9:25 am

55+

Obviously there is a market out of YHZ or the Tour Operator (Sunquest or Transat) wouldn't have set up the flights out of YHZ. The planes coming out of YHZ on charters were pretty full last year. CanJet doesn't determine where it flys out of, the tour company does, CanJet merely bids on the available flights. Regardless of how many people are willing to drive form the surrounding provinces the plane is paid for. The contracts are usually paid by the hour not number of seats filled so there is no loss for Canjet. Now if there is not enough interest in leaving from YHZ then the tour company may decide to cut out YHZ. Then they merely depart from another airport next year. If CanJet gets that contract is up to the tour operators.

As for what they are going to do over the summer I'm sure thay are formulating a plan. These guys have been around the block.

Either way best of luck to all the CJers out there no matter where you may end up.

Cheers
MS

Flightlevels · Post by **Flightlevels** » Thu Oct 12, 2006 1:36 pm

Transat never had all the flights covered by westjet in the first place. On Saturdays alone WJ has 31 of the 61 aircraft doing charters for transat this winter. Westjet still needs to cover it's own stuff too(transborder and domestic) The sked stuff is higher yield. There is more potential to incure costs if the charter isn't completed. Canjet will still be in a money losing situation due to the lease obligations and limited charters along with all the salaries etc. Back up a/c and support will be at a criticle level if irops occur due to the lack of available planes too. This is where AC and now westjet can accel. If anything these is a huge contract that can certainly be shared. Canjet is getting what westjet couldn't handle, just like last winter. There is no surprise to me here, nor talking with other higher ups. JMHO.

po'dcjer · Post by **po'dcjer** » Thu Oct 12, 2006 4:18 pm

ya know, you wj guys make me laugh, it was just a week ago you guys were saying there was no way cj was going to get any contracts, that everything was done for the season. But here we are with both sunquest and transit deals signed and you dumbasses are still going on how you your the best and the rest of us are second fiddle - go drink your kool-aid and we'll keep drinking beer....

Kandoo · Post by **Kandoo** » Thu Oct 12, 2006 4:25 pm

Flightlevels "Canjet will still be in a money losing situation due to the lease obligations and limited charters along with all the salaries etc."
You know Canjets lease and salary costs?
"Back up a/c and support will be at a criticle level if irops occur due to the lack of available planes too."
You are obviously aware of Canjets backup plans for irops as well!
"There is no surprise to me here, nor talking with other higher ups."
So your crystal ball was right! You and your higher ups saw all this coming! Could you do me a favor and look into your crystal ball and tell me the winning numbers for Lotto 649 this Saturday.

Troubleshot · Post by **Troubleshot** » Thu Oct 12, 2006 4:32 pm

CanadaEH wrote:I don't know who Canjet would be flying for. It's mid-September and most if not all charter companies are already promoting their schedules for the winter season. If anyone hasn't, they probably won't. Both Sunquest and Transat have flying committed to Skyservice and Westjet metal, respectively.

PO CJ'er is right....