FlyerTalk Forums - View Single Post - Who will benefit the most from Jetsgo's demise: AC or WS?
Old Mar 11, 05, 6:43 am
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In the end, even if s/he doesn't realize it, the Canadian traveler will benefit because there will be a stasis in the industry that will allow it to become healthy, cover real operating costs, and provide a good standard of service and frequency. It may add a few dollars to the cost of a ticket, but think of all those folks who have just lost their $200 great deals!

Yes, prices for the immediate few days will go up because supply is limited at this peak travel period. But once Easter is over, and summer rebooking done, things will get back to a better normalcy. CANJET will get stronger and be a regionally based carrier Atlantic Canadians can fly and champion. WESTJET can get back on course and maintain its original business plan of offering reliable low cost service with reasonable frequency, as the west's hometown favourite. And AC will continue to achieve those high domestic load factors, but maybe even start making money in this sector of its market.

Don't be deluded by low prices. You can't sell a product or service for less than cost and stay in business for the longhaul. This is really the best thing to happen for both sides of the equation, and long overdue. LeBlanc was a spoiler for all serious players. Only fools could love him, and there seemed to be enough of them out there to keep him going...until even he figured it all out!

Again, both ACE and WestJet should get a small bounce this morning when the TSX opens.

BTW, story made it on the G&M's front page of the local Toronto edition of this morning's real "paper". And the STAR ran a red banner headline, along with a story about the fleet being grounded on page two. And in the ROB section, there is a prescient article about JetsGos problems with Transport Canada. It provides a clear reason for the shutdown: No longer being able to fly at heights that burn fuel most economically, and another bump up in the price of fuel itself, likely sealed the fate of this dodo.

Last edited by Shareholder; Mar 11, 05 at 7:38 am
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