CanJet Vacations gets the nod.

[verybadman]

We got the news today we're going into the vacations market!

[Old fella]

Good to hear that, I know people who flew on CJ and were pleased with the service. Hope it all falls into place.

[rudder]

Canjet pilots could fly for free and the new vacation company (will it be Canjet Vacations or Canjet Holidays?) will still get slaughtered.

This is a segment of the business that runs in the low single digit margins. And at least two of the other CDN competitors are vertically integrated providing virtually all of the associated services in-house including either owning or having exclusive commercial relationships with several large hotel chains.

Canjet would have been better off announcing sked service as an independent airline. There is no way that some small maritime packaged holiday boutique will be able to be profitable if charging comparable pricing vs the mega vacation package providers in Canada.

[Old fella]

"Canjet would have been better off announcing sked service as an independent airline"

Is there really a market for another scheduled airline with B737 operations especially YHZ based, CDN North just announced B737 service from YFB - YHZ - YYT startup in June, granted on a seasonal basis as I understand it

[Gilles Hudicourt]

Please do not set up any business plan that involves requiring TFW crews, except if in a true 1/1 reciprocity deal with a foreign operator. Otherwise, crew the aircraft with Canadians........

The best of course, would be a reciprocity deal with one or several Canadian carriers which requires more pilots in the summer than in winter.

[oldman]

Rudder,

You are absolutely right! But I think their may be more to it, the other shoe has yet to drop! Me thinks!

[Gilles Hudicourt]

Like selling a 49% stake of the company to TUI for example.....

[rudder]

Like selling a 49% stake of the company to TUI for example.....

That initiative has already happened elsewhere. TUI already has a firm presence in Canada.

Thomas Cook North America no longer exists so that is not an option either.

I am not sure what it is that the Rowe family have planned nor who is going to finance it. Regardless, nobody has the buying power of Sunwing Vacations or Transat Holidays so it boggles the mind to see how adding capacity to the already saturated packaged tour business in Canada is going to be a money maker.

Or is this announcement simply intended to stop the employee exodus? It was certainly lacking in detail and the fact that it was not announced publicly also makes one wonder how much business development has actually gone on. And this part about picking the name of the enterprise. Really?

[richardhead]

With the recent changes to the contract pilot rules, how is it Sunwing/Tui will ramp up to 40 aircraft next winter? I'm sure they will just pack up there things and go home leaving everything to Transat Giles. Use your head.

[Gilles Hudicourt]

With the recent changes to the contract pilot rules, how is it Sunwing/Tui will ramp up to 40 aircraft next winter? I'm sure they will just pack up there things and go home leaving everything to Transat Giles. Use your head.

I have learned never to under-estimate Sunwing. They are always several steps ahead of me. I have no idea how they will manage to crew 40 aircraft next winter, after laying off some of their 250 Canadian pilots this summer, as they have announced. But I'm certain the brains at Sunwing know how they intend to do it. They always have a plan....... Granted, their plan often involves gambling on questionable assumptions , but it has worked out for them so far, at least on this side of the Atlantic.

In Europe, the authorities have restricted things a bit, which has thrown an un-expected monkey wrench in their plans, restricting not the foreign pilots coming to Canada but rather the Canadian pilots going to Europe.......

[CMD-A]

You must have a direct phone line to SWG management, 'cause I work there and I wasn't told about lay-offs as well as the 40 aircraft fleet for next winter. But you know better of course.

[Rogerdodger2]

There have been no layoffs at SWG.

[Gilles Hudicourt]

You must have a direct phone line to SWG management, 'cause I work there and I wasn't told about lay-offs as well as the 40 aircraft fleet for next winter. But you know better of course.

The "40" wasn't from me, although I did hear that number from a couple sources, but I also heard it last year for this winter, and as it turned out, it wasn't true.

As for the layoffs, it would be great if there were none. I heard otherwise from several sources but in this case, I sincerely hope I was misinformed.

[Stick-Shaker]

All the best CJrs...lots of good folks there. But don't kid yourself. Margins are so tight in this market and profits are only generated based on volume and lots of it. So unless CJ has big plans to add lots more lift then I have to say this is a bunch of hogwash. It looks an awful lot like what CJ 2 did when Daddy Warbucks just needed a short term gig until he could end those 737 classic leases.

But best wishes. I hope it works out.

[bigskyjoc]

If Canjet Holidays/Vacations ramps up does this mean that they may actually have to rent 10 square feet of office space within a 30 km radius of Pearson Airport?

The memo is surely jesting.

[oldman]

Stick-Shaker

You are pretty accurate but that short term gig did turn into about seven years and NG's! What is next, who knows, I don't think they can say until after May 01. The NG's have been extended out to spring of 2016 and a couple going to Europe for this summer, probably next. Diversification now seems to be the plan, who would have thunk.