tcook052

http://www.canadianbusiness.com/arti...r-fare-service

MONTREAL - WestJet's new regional service set to launch next year will spur passenger demand by offering fares at up to half the level charged on those routes by monopoly operators such as Air Canada, chief executive Gregg Saretsky said Monday.

The head of the Calgary-based airline (TSX:WJA) told the Canadian Club in Montreal that WestJet Encore will "liberate" Canadians who live in smaller communities from the high cost of travel.

sokolov

Just 50%? :-)

I checked the prices for a one way flight from YHZ Halifax, NS, to YQY Sydney, NS. Distance: 190 miles.

The price range for the cheapest Economy ticket in most of December is C$ 355-594, but from December 20 to 23 the price range is C$ 1.030-1.107.

Compare this to a WestJet route of similar length, YVR Vancouver, BC, to YLW Kelowna, BC, (179 miles). Most expensive flight in December on WestJet is C$ 287. Yes, there is more demand and aircrafts are larger. But this is why WestJet Encore is in the making. :-)

wjalcc

I'm looking at prices on google flights for Dec, AC is consistently priced lower or at the same price as WJA for the flight between yvr and ylw.

TheGreatestX

^That's why competition is a good thing.

YYCguy

Perhaps the seats are filling up faster on WS than on AC. As the flight fills up, the prices go up. I think that's the same on many airlines. So if that's the case here, we can deduce that AC probably has lots of room left and folks are choosing WS over AC??? Not sure, but my two cents worth.

HangTen

That's weird.

It's the same thing as the gas station closest to the family summer cottage.

When there was one Sunoco station 10 years ago, the price was always about 10% more a liter than the next nearest station 20 minutes down the road.

The moment the discount gas station came in and lowered prices, Sunoco lowered its prices to the same price as the new guys. It has been the same ever since.

If they charge a two pennies more a litre, even though most gas tanks hold no more than 80 liters or maybe $1.60 a fill up more, no one would buy ANY gas from them because for most people, gas is gas is gas.

They HAVE to match the price, no matter what it costs them or they'd go out of business due to no sales. I guess Sunoco makes it up where ever else they can over charge for gas where there isn't any competition.

BTW, everyone I know buys gas at the discount station because if it wasn't for them, Sunoco would jack the prices up and we'd pay WAY more for it.

DanJ

Enough people must still be buying at the Sunoco or they would simply close it down too. Then you'd see the discount guy mark his prices up because of no competition.

HangTen

Abbotsford and Hamilton, Kitchener and Comox are basically Westjet monopoly markets and the fares are the same or less than from Vancouver, Toronto and Victoria so that theory doesn't really work.

YYCguy

Interesting to note that, except for Comox, the other 3 airports are suburban/secondary airports to the metropolitan airports also listed. I wonder if the fares are lower in order to entice travellers to a second, smaller, and perhaps more convenient (ie: in terms of parking, security, crowds, ease of checkin in) option.

DanJ

Why do you think the theory doesn't work? You've seen proof already that it does. You think the new guy in the market is charging less because he wants to and wouldn't take advantage if the other guy left?

DanJ

I think if the fares were significantly higher from Kitchener, people would drive the 40 minutes down the road and fly from Toronto, but might not necessarily pick Westjet then. And unless you are very specific on the schedule you need to fly, you would probably just adjust your needs to what was offered locally rather than drive to the big airport that might have a preferred schedule.

FTcadence

Today, June 24, was WestJet Encore's first birthday. Encore started out with just 6 destinations and in the last year has added 12 new ones. Its fleet has also grown from 2 Bombardier Q400 NextGens to 13 (by the end of this month). By the end of this week, WestJet Encore plans to launch east-bound service; to connect Thunder Bay and Toronto with 4 daily, non-stop flights.

http://www.prnewswire.com/news-relea...264490961.html

airbus320

I am still hoping for Encore to fly to Lethbridge (YQL) from YYC.

Those YWG-YYC-YQL fares are darn expensive.