Trouble in paradise

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Blastor
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Trouble in paradise

Post by Blastor »

WestJet slashes prices on runs into California

Lisa Schmidt
CanWest News Service


Thursday, June 23, 2005

CALGARY --WestJet Airlines Ltd. is slashing fares to Los Angeles and San Francisco with a two-for-one seat sale, a sign the less-than-year-old routes are struggling to attract traffic, one industry analyst says.

The Calgary-based discount carrier, which launched a major expansion to the U.S. last fall, advertised the deal Wednesday for tickets from Calgary and Vancouver.

"I don't think WestJet has any choice except make those routes work," said Rick Erickson, an aviation consultant with R.P. Erickson & Associates in Calgary.

"It would certainly raise eyebrows as to how sincere WestJet was as to developing its U.S. gateways if it was to pull out of either one of those markets."

The highly competitive routes are also served by some U.S. carriers and Air Canada. Air Canada also announced a seat sale Wednesday that included Calgary-San Francisco and Vancouver-Los Angeles. There was no immediate response from Air Canada on whether it would match the WestJet discount.

WestJet acknowledged that passenger numbers on the U.S. routes have been a "little below" those on domestic flights, but the airline's research has shown that many travellers simply don't know about the new American routes that were originally announced in early 2004.

"We decided to do something with a big splash that would give us some awareness as well as fill up the planes for the summer," said Bob Cummings, WestJet's vice-president of marketing.

WestJet has offered "companion" fares in the past, but with more restrictions. Cummings said there are no plans to extend the deal to other U.S. routes.

"What you will see is us creating more awareness and promoting our U.S. routes more," he said. That will include some special offers, although not as aggressive as the deal advertised Wednesday.

On Tuesday, the airline announced it would raise domestic fares to cover rising fuel costs, following the lead of Air Canada, which increased prices a day earlier.

© The Daily News (Nanaimo) 2005
:twisted: :twisted:
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quickflight
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Post by quickflight »

It's a lot harder to know what routes will work out for you without access to air canada's load factors.
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Rubberbiscuit
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Post by Rubberbiscuit »

Ouch!
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flyer 1492
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Post by flyer 1492 »

ha ha ha ha!!!!!! :lol:
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flyer 1492
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Post by flyer 1492 »

It's funny, I seem to recall another airline offering a two for one seat sale. I wonder what happened to them?.... JETSGONE!!!!!
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RVSM
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Post by RVSM »

Was it funny when Jazz was bankrupt?

Will it be funny when Air Canada unloads Jazz and you have to sink or swim on your own?
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quickflight
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Post by quickflight »

Air Canada was bankrupt, Jazz as wholly owned subsidary cannot actually file in that way. Now Air Ontario was close, Air BC had some trouble, and for the most part Air Nova made money.

Oh Yeah it's still funny, learn to laugh a little. You're going to give yourself an ulcer.
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RVSM
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Post by RVSM »

To-may-to, toh-mah-to. Insolvent is still insolvent, no matter what way you frame it.

No ulcers for me. No matter how things shake out in this industry, I still win.
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EI-EIO
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Post by EI-EIO »

Now that Aeroplan is spun off to a trust, perhaps Jazz will be on the auction block.
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flyer 1492
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Post by flyer 1492 »

That would be very interesting. I wonder how the markets would react to it?
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slob driver
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Post by slob driver »

Hey Quickflight,

What ru talking about? AO was never close to being bankrupt. In the CRA/Air BC wars, those two took money from each other, but Air Ontario always did well, especially compared to their competition, like Ontario Express(Canadian Partner), City Express, etc. etc.
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Trickkles
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Post by Trickkles »

Thanks Blastor for the informative post - I was curious as why WJ went for a Jetsgo-style seat sale (considering how much Wj criticized Jetsgo for doing it).
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RVSM
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Post by RVSM »

Yeah, Rick Ericksons is entitled to his opinion. Here's mine.

I think WJ put on the sale for three reasons;

1) to respond to Alaska Air sale pricing

2) to garner some publicity on the routes (thank-you Erickson and Canwest)

3) to fill a very large number of seats on what are growing routes. Calgary to L.A. has gone from daily service to twice daily 5 days a week. Calgary-SFO is operating 5 times a week, up from 3.
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Blastor
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Post by Blastor »

WestJet Airlines WJA-T Last Trade:Jun 30, 2005 14:41 EST
Last: C$ 13.800 Net Change: C$ 0.290 % Change: 2.15%

Ouch!! :twisted:
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Jaques Strappe
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Post by Jaques Strappe »

Rick Erikson again? Where do these self proclaimed aviation experts come from anyway?

I haven't found one that can predict what day Christmas will fall on this year let alone make an intelligent prediction about this industry.

Until Westjet drops the route, I wouldn't listen to anything these idiots ( so called experts ) have to say.
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Flightlevels
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Post by Flightlevels »

Jaques Strappe wrote:Rick Erikson again? Where do these self proclaimed aviation experts come from anyway?

I haven't found one that can predict what day Christmas will fall on this year let alone make an intelligent prediction about this industry.

Until Westjet drops the route, I wouldn't listen to anything these idiots ( so called experts ) have to say.
Erikson has been singing from the AC hymn book for a while...he was even one of the few anylists flown to YYZ for the Celine promo in the hangar then interviewed by CBC. This was selected group and all expenses paid by AC...how do I know...was just speaking with him in the YYC terminal. :roll:
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Jaques Strappe
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Post by Jaques Strappe »

That makes him an "expert" ? :?
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