Fly Sarvaq

[jspitfire]

http://www.cbc.ca/news/canada/north/fly ... -1.3424412

Somebody help me out here, but isn't this the same set-up as New Leaf? would they not be facing all the same issues with the CTA?

[ymxnewbie]

There are dozens of tour companies that charter airlines and then sell individual seats in Canada. This isn't a new concept, and I can't speak for NewLeaf, but rest assured that it is legal and well researched. Another northern airline has been operating this way for many years under various marketing trade names depending on the area where they are operating.

[jspitfire]

Looked into it more and yes it appears Sarvaq is a joint-venture, which makes it similar to all The other ones up North, so shouldn't have any issues!

[Realitychex]

http://www.cbc.ca/news/canada/north/fly ... -1.3424412

Somebody help me out here, but isn't this the same set-up as New Leaf? would they not be facing all the same issues with the CTA?

Unlike New Leaf, Savaq, at least for now, has lift in Nolinor.

As long as Nolinor is paid, and there's enough left over to pay Savaq's other operating costs, it has a chance of succeeding.

However, if it were as easy as it sounds, it would have been done long ago.

[fish4life]

I think the issue right now is the code sharing agreements up there have lead to very unhappy customers so I'd give this one a chance to succeed initially since everyone is mad about the current carriers. Not a lot different than the way WJ started except a northern version.

[CL-Skadoo!]

Plus they are going to offer a flight to the east coast. I know some folks up there who have been begging for jet service to the east coast for a while, they better step up with their cash now.

[Jim_12]

Starting sched service with 737-200...............................

[CL-Skadoo!]

The north wasn't won on high-bypass jet engines, son. That plane will do just fine.

[Donald]

Looked into it more and yes it appears Sarvaq is a joint-venture, which makes it similar to all The other ones up North, so shouldn't have any issues!

You can call it a joint venture, but at the end of the day it is Sarvaq selling the seats and Nolinor holding the OC. So in effect, it is the same as New Leaf.

Having said that, it's all legal.

[Cessna 180]

Probably why Nolinor is leaving YKF.

[Realitychex]

I think the issue right now is the code sharing agreements up there have lead to very unhappy customers so I'd give this one a chance to succeed initially since everyone is mad about the current carriers. Not a lot different than the way WJ started except a northern version.

WJ started debt free with their own aircraft, crews, maintenance, airport staff and everything else required to operate an airline. Dispatch, underwing and heavy maintenance were contracted out. Virtually everything else was done internally.

They didn't pay some one else to operate the aircraft for them, together with some one else's profit margin built into the cost. Middlemen tend to be expensive.

For that reason, there is a huge difference between these sorts of ventures and what was created 20 years ago in Calgary. That difference ultimately boils down to significantly higher unit costs compared to what would otherwise be possible.

The margin being paid to Nolinor may not sound like much, but in an industry where 10% margins are considered nirvana, giving away 10% to the supplier of lift may very well be the entire profit, and then some, from the whole operation.

More than anything else, these sorts of ventures are absolutely dependent on having the lowest unit costs possible in order to withstand the competitive forces they'll face in the marketplace.

By definition, contracting out the flying ensures the unit costs will not be as low as they otherwise could be which handicaps these sorts of airlines chances of success.

[ymxnewbie]

@RealityChex -You're correct on your posting in regards to the details posted about WestJet, but you're missing the point on what a joint venture is. There is no middleman, this is a case of an airline and their partner launching passenger service in a market that's been rattled by a consolidation that's left a bad taste in the mouth of the average consumer.
For the person questioning the introductory fare rates, you'll have to stay tuned, but I can tell you that if you fly on the current airlines up north, the price paid by the guy sitting next to you may be a lot different from what you pay buying a ticket online. The fares announced are different in that everyone will get the same opportunity to buy the tickets at the posted rates.
If you do book a flight on Monday, and the weather or anything else causes a cancellation, we'll reschedule a new flight. Keep in mind everyone has to walk before they can run, but nobody starts an airline to only operate two flights a week right?
At the end of the day, this is a new service, and the job of the folks already flying these routes is to undermine and destabilize the idea of a new carrier. I respect that, but we'll work hard to debunk the misinformation that gets spread out there.

[Realitychex]

Running a Porsche a couple of days a week will likely result in lower overall costs than running a Miata daily.

But I'll betcha the unit costs of running the Miata will be way lower.

It's the unit costs that matter.

[ymxnewbie]

@realitychex - You're absolutely correct, so if someone had a Porsche or Miata, and they wanted to start a taxi business a few evenings a week to compete against the already existing taxi business, their unit cost may be higher. Perhaps though, they could start with a few evenings, with the idea of seeing how much demand was there, and also if they should service any other cities. Then, who knows how low they could get their unit costs, especially if they already used their fleet of Porsche's and Miata's for delivering cakes on the other days of the week.
So, you're right, if you assume that the entire infrastructure for a 705 airline operation is built around flying two days a week, but fortunately for the upstart, it isn't.

[YVRLTN]

As per airliner route, equipment will now be supplied by Flair, not Nolinor. Start delayed to May 20th and renamed GoSarvaq.

Does this mean even less chance of Flair providing lift for Newleaf?

[fish4life]

This seems like a big risk for Flair, who's going to pay for a plane going mechanical up north or getting stuck for a 4 day blizzard when it has other flying it's supposed to be doing?

[NAT2]

This seems like a big risk for Flair, who's going to pay for a plane going mechanical up north or getting stuck for a 4 day blizzard when it has other flying it's supposed to be doing?

Well it didn't even get off the ground

http://www.cbc.ca/news/canada/north/gos ... -1.3570163