"Temporary Surcharged"

[Blastor]

WestJet second to raise fares

By BRENT JANG

Wednesday, June 22, 2005 Page B8

TRANSPORTATION REPORTER

WestJet Airlines Ltd. is matching Air Canada's domestic fare increases, echoing concerns about high fuel bills hurting its finances.

Sean Durfy, WestJet executive vice-president of marketing and sales, said yesterday that the Calgary-based airline couldn't hold off any longer on boosting ticket prices within Canada.

The discount carrier made its decision a day after Montreal-based Air Canada announced fare hikes to combat sky-high oil prices.

On one-way tickets booked starting tomorrow, short-distance fares up to 483 kilometres rise $8, medium-haul service between 484 kilometres and 1,609 kilometres climbs $10, and routes longer than 1,609 kilometres increase $15.

Brutal competition from now-defunct Jetsgo Corp. kept fares artificially low previously, but since Jetsgo grounded its fleet March 11, fares have climbed to better levels for the airline sector, Mr. Durfy said.

"We've gone through a period of irrational fares in the marketplace, and now we have tremendous pressure on fuel prices. We had to make the decision to increase the fares, and we believe this is appropriate."

For every jump of $1 (U.S.) a barrel in crude oil over a year, WestJet's annual profit takes a hit of nearly $6-million (Canadian), he said.

WestJet chief financial officer Sandy Campbell described his airline's fare increase as a "temporary fuel surcharge" built into published base fares.

Ben Cherniavsky, an analyst with Raymond James Ltd., said Canada's airline industry has regained "pricing power" after Jetsgo's demise.

"We believe that much of the expected increase in fuel costs can be offset by fare increases," he said in a research note yesterday.

In a sampling of choppy WestJet fares by Raymond James, the carrier's "pricing index" has doubled since January, when Canada's airlines were locked in a war of deep discounts sparked by Jetsgo, but that index has now barely recovered to the same level as a year ago.

CanJet Airlines of Halifax is monitoring the fare hikes of its rivals. "Fuel prices are extremely high," CanJet spokesman Wayne Morrison said. However, the carrier intends to take a couple of more days to review its next move, he said.

All three airlines say they're ready to raise fares on routes to the United States, if necessary, but that they haven't yet arrived at that point.

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[Blastor]

While you were sleeping..

CanJet is Canada's newest coast-to-coast carrier

McLeod, John - Halifax Daily News - June 22, 2005

CanJet is Canada's newest coast-to-coast carrier
CanJet can now truly call itself a national airline. The budget airline became Canada's newest coast-to-coast airline with its inaugural non-stop service from Toronto to Vancouver yesterday.

CanJet and Tim's give satisfaction. On the week marking the third anniversary of Halifax-based discount airline CanJet Two, which is far and away this occasional traveller's favourite airline - and the day after Statistics it's a worthwhile exercise to consider what makes a consumer service successful.

[quickflight]

yeah canjet

[double-j]

Its funny how you morons sing songs of praise about Canjet, while in the same breath fume about Westjets salaries. I'm sure you are well aware that Canjet rates behind WJ in both salaries and monthly work rules??

Not that I have a problem with CJ, but this just adds to your lack of credability when your whole platform is WJ gets paid shit and therefore is what is destroying the industry, while CJ is the white knight!

fuk'n stupid...



jj

[Flightlevels]

exactly jazzy..well said. it goes further into other Canadian companies too. Hope this debate is over.

[complexintentions]

Maybe the difference is that Canjet doesn't try so hard to dress up a shit sandwich as a steak dinner?

[Kosiw]

So that's what that smell was on my last Westjet flight

[quickflight]

For me it's not so much the pay as having to live that far inland. That's just wrong. And besides cowboy boots hurt my feet.