AC - new competitor in Eastern Canada

Old Oct 18, 10, 1:26 pm
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AC - new competitor in Eastern Canada

Think Eastern Triangle...FAR east!

This came out of nowhere, never heard of them. TCook where are ya?



New airline for Maritimes
Last Updated: Monday, October 18, 2010 | 2:47 PM AT Comments7Recommend12.
CBC News

East Coast Airways has announced it will start service to five communities in the Maritime provinces on Nov. 1.

Sample fares

Halifax – Charlottetown $139

Sydney – Halifax $169

Saint John – Halifax $149

Yarmouth – Halifax $179
The new airline is targeting what it calls under-served cities in the three provinces: Charlottetown, Halifax, Yarmouth, N.S., and Sydney, N.S., and Saint John, N.B.
Jay Hasson, the president of operations, said the airline, which is based in Halifax, will use small turboprop planes that can carry 19 passengers. When the service expands, bigger planes will be added.

"We'll be utilizing about five airplanes to service all the cities," Hasson said. "We have daily non-stops and then we will add more airplanes in 2011 for a total of between 17 and 20 aircraft."

Hasson said schedules are designed for the convenience of business customers.

"We've got schedules that will get you out in the morning, not too early, but it'll get you home for suppertime," he said. "We run several times a day to most of our cities."

Joyce MacDougall of the Sydney and Area Chamber of Commerce is pleased to see more competition at the local airport.

"That always drops fares, gives people more options of flight times and makes sure that Sydney Airport is busy," MacDougall said.

Fares for most flights range between $150 and $200


Read more: http://www.cbc.ca/canada/prince-edwa...#ixzz12jiALyMf
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Old Oct 18, 10, 1:32 pm
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hope its as good as Porter.
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Old Oct 18, 10, 1:36 pm
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Here, let me predict the future:

They will offer low unsustainable fares in order to grab business and then go out of business in 6 months' time, and the world will blame AC for crushing the competition and charging high fares.
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Old Oct 18, 10, 1:37 pm
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Originally Posted by why fly View Post
hope its as good as Porter.
Porter cannot sell fares without offering a constant 20% off discount code. And they have only a 50% load factor. Unsustainable. AC coming on board at YTZ will tip them over the edge. AC can match/beat their fares forever, until someone blinks.
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Old Oct 18, 10, 1:48 pm
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like all airlines use them till they go onto CCAA. keep your FF mileage LOW.
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Old Oct 18, 10, 2:32 pm
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No matter how unprofitable the airline industry is, there is always people lining up to start an airline.
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Old Oct 27, 10, 6:50 am
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Uh oh.

Creditors pursue man behind Maritime airline - CBC
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Old Oct 27, 10, 9:01 am
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Originally Posted by wsommerv View Post
At least he didn't promise to build a monorail.
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Old Oct 27, 10, 9:07 am
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Angry creditors in the U.S. say Jason Hasson, president of operations, owes hundreds of thousands of dollars and they've been unable to track him down.
Well, I'd say that shouldn't be a problem now!
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Old Oct 27, 10, 10:44 am
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that was a quick fame!
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Old Oct 27, 10, 11:46 am
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East Coast Airways is using Beech B1900s which need only about 7 passenger to break even.

East Coast Airways is a division of Integra Air Inc. of Lethbridge, Alberta.
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Old Oct 27, 10, 12:15 pm
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Originally Posted by Spot planes View Post
East Coast Airways is using Beech B1900s which need only about 7 passenger to break even.

East Coast Airways is a division of Integra Air Inc. of Lethbridge, Alberta.
Do you really think they break-even with 7 people regardless of the fare charged? Even if fares drop in half, they still break-even with 7 people?

I hope they've thought this out a bit better than that or they won't last more than a few weeks in business!

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Old Oct 27, 10, 12:45 pm
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Fares as listed above are far from "give away" pricing! I suspect that yes they can make money by earning anything much over $1,000 per segment.
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Old Oct 27, 10, 1:40 pm
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Originally Posted by The Lev View Post
Fares as listed above are far from "give away" pricing! I suspect that yes they can make money by earning anything much over $1,000 per segment.
Well, the plan is to charge pretty expensive fares on those routes.

That will require cooperation of other airlines flying the same routes. I am not convinced they will be as inviting as the proponents of this airline are thinking!

I looked at Halifax - Charlottetown and fares are $199 one way in mid January which is a slow time of the year. I think that when the new guys enter with $139 fares, the existing guys will have no choice but to match the fare. Then the new guys drop to $129, it is matched, then $109, then $89 than $69 and on. It might make money with 7 people paying $139 each but I doubt it'll make money with 7 people paying $69 each!

They are the new guys on the block with the same or lower number of flights on the same exact routes, the same airplane type, the same inflight service, the same seats on board with no points program to get people to Florida in the winter and across Canada and to Europe in the summer. The only way to get people to switch is by lowering the price a lot and consistently being lower than there competition.

I sure hope that they have expenses that are way, way lower than the competition so they can sell fares at half the going rate and still make money, or have lots and lots of money in the bank and investors who can afford to lose it!


Last edited by HangTen; Oct 27, 10 at 1:45 pm
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Old Nov 1, 10, 9:02 am
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This doesn't look like much of an option. Prince Edward Air had a passenger service much the same for a year or two, but it didn't work out and they went back to their charter/cargo.

The issue that makes this airline unusable for me is "schedules are designed for the convenience of business customers."

If I'm flying to YYG-YHZ, I will be going for a connection to one of the regionals such as Continental, Expressjet, American, Qantas, BA, even Porter. Most of the useful flights (the flights that get you to a hub in time to make your intended connections to the rest of the world) leave between 6:30 and 8:00. Furthermore, if I do have business in Halifax, then I would like to be arriving downtown before 9:30 and I'll probably just drive the 2 hours to get there.

ECA's 8:00 flight, arriving at 8:40, is pretty much useless to a business traveller. Same on the return - the last flight leaving at 4:55PM. Designed for the convenience of business travellers!? Really!? The best time for outbound flights from Halifax would be around midnight. Flights from all over NA land there all evening, and passengers are stuck overnighting or driving to their Maritime destinations. If I arrive in YHZ at 7PM and I'm a 2 hour drive from home (even a 5 hour drive, assuming I am headed for SYD), then there is no way I'm waiting around for a morning flight.

A poorly implemented design, for certain.
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