New Airline to launch Transcon routes out of YHM by end of Summer, how will AC react?
Jun 9, 2015, 8:03 am
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New Airline to launch Transcon routes out of YHM by end of Summer, how will AC react?
Bet AC didn't see this coming:
Mighty convenient now that rouge has been delayed out of YHM till 2016. 
Travellers looking for deals offered by no-frills carriers like Spirit Airlines or Allegiant Air could see a Canadian version operating out of the Hamilton airport by this summer.
NewLeaf Travel Company Inc., which plans to offer unbundled services including air, hotel and car rentals, announced Monday that it has picked Winnipeg for its headquarters, but plans to have bases in Hamilton and Kelowna
NewLeaf Travel Company Inc., which plans to offer unbundled services including air, hotel and car rentals, announced Monday that it has picked Winnipeg for its headquarters, but plans to have bases in Hamilton and Kelowna
Jun 9, 2015, 8:04 am
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Out of Hamilton
I don't think anyone saw this coming
Out of Hamilton
I don't think anyone saw this coming
Jun 9, 2015, 8:09 am
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I thought there was an AC Rouge route that was delayed but was going to operate out of Hamilton if memory serves me correct?
Jun 9, 2015, 8:14 am
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The article states that many of their intial customers they are targeting are people priced out by AC and WS, but I can see a significant portion of AC/WS's leisure market (who are on the fence given all the new nickel and diming) to be swayed (as secondary growth target market) by an LCC who is offering true discounted base fares, with surcharges on top that still come out less than AC.
Jun 9, 2015, 8:19 am
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Jun 9, 2015, 8:20 am
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So how many LCCs/ULCCs is that which have announced their intention to start service across Canada over the last couple of years? At least three or four, maybe?
And how many of those offer flights that I can buy a ticket on this month?
Talk is cheap.
And how many of those offer flights that I can buy a ticket on this month?
Talk is cheap.
Jun 9, 2015, 8:30 am
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http://www.flyertalk.com/forum/air-c...most-year.html
Jun 9, 2015, 8:34 am
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yes, AC did announced service from YHM to this year, but later delay the launch by almost 1 year:
http://www.flyertalk.com/forum/air-c...most-year.html
http://www.flyertalk.com/forum/air-c...most-year.html
If this plays out, newleaf may have turned the tables on AC while they were turning the table on Jet lines/naked.
Jun 9, 2015, 8:36 am
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And AC took the jet lines/naked threat seriously to pre empt service to YXX and launch rouge in the domestic market as a way to get ahead of the future competition.
If this plays out, newleaf may have turned the tables on AC while they were turning the table on Jet lines/naked.
If this plays out, newleaf may have turned the tables on AC while they were turning the table on Jet lines/naked.
http://www.theglobeandmail.com/repor...ticle24036547/
Jun 9, 2015, 9:58 am
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And, Where can I add my name to the waiting list to join it?
Jun 9, 2015, 3:05 pm
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I'm gonna say this fails miserably. We simply don't have room for more competition in this country. There's already traffic going to the US by driving across, then low cost travelers on rouge/ws then biz travel on AC, let alone the cheap fares AA/UA often offer.
I realize this is supposed to be LCC or ULCC model, but they'll have a small fleet, very limited destinations/skeds and with our population it won't work.
I realize this is supposed to be LCC or ULCC model, but they'll have a small fleet, very limited destinations/skeds and with our population it won't work.
Jun 9, 2015, 3:12 pm
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-Cheaper lease rates? Possibly, their 734s should cost a little less than AC's 18yo A319s. But their fuel burn will be much higher
-Nav Canada fees - same cost
-Wynne's fuel taxes - same cost
-CATSA security - same cost
-Terminal and landing fees - same cost in shared airports
-AIF - same cost (YHM at $28.25 is one of the highest in the country)
So if they can convince travelers to drive to YHM to save $50, it may work. At least until fuel costs go back up! Oil was sub-$80 for JetsGo's entire existence ($30/barrel when they started) and they couldn't manage it.
I doubt AC will rush Rouge to defend against this. Probably wait to see what happens, they can always step in earlier than the planned 2016 and try to undercut them later if they survive until next summer (or even launch by then).