Fisch

http://www2.cdn-news.com/newsnet/cur...0n.html?cp=wja

Looks like our routes to these cities aren't doable with the current taxes added on to our fares.

This cancellation will not take effect until September 9/10th respectively!

[This message has been edited by Fisch (edited 05-12-2003).]

Cloud Lounger

Looks like Mom now has to go via YYZ on AC this summer

Fisch

Cloud Lounger: I neglected to emphasize in my original post that this change does not take effect until mid-September, so depending on when your Mom is flying, it may be all A-okay!!!

whyyzman

Fisch the newsrelease states that the low off-season volume may be the result of the high fees and surcharges, it doesn't say it is. It could also be that no-one travels to these communities in the off-season, the tourist, visiting family market etc., is gone ... If it is impacting these markets, what about the other small markets Westjet serves? Is it impacting them also. Bill Lamberton may be right, it just presents itself as he may be wrong as well.

acysb87

Our city is spending some good dollars to upgrade the terminal building.Unfortunate to see Westjet leave,however,a sound business decision if loads are not there.
Other notes;
AC station manager terminated ,effective early June. Another flight being added because of healthy Jazz load factor.(YYZ-YSB)
There is some(?) positive news .

tcook052

Not to argue too fine a point, but the news release doesn't use the word 'may', it says "the poor level of demand in slower seasons are in large part a result of the continuous increase in taxes and fees that are being imposed on Canadian travellers by the Government of Canada and other agencies."
An attempt at spin by Bill Lamberton, yes. Right or wrong? The jury is still out on that one...

WR Cage

Clive Beddoe mentioned during the Q3-2001 conference call that these cities were not performing to projections. The analyst community was grilling him about network weaknesses in light of the security fee implementation. Clive also mentioned that YEG-YYC is a good profit reducer but WS needs the connection feed into YYC and aircraft movement capability. YVR-YLW has been cut back and I think only works because all flights go through to YYC. The only other small markets that could be cut are Comox, Victoria, and Prince George. Grande Prairie and Ft McMurray both do well with the oil industry biz traffic as all flight go through YEG to YYC.

To date, WS has cut and subsequently reinstated service to the following cities: Winnipeg, Grande Prairie, Ft McMurray. The cities that have not been reinstated are Thompson and Brandon.

There could be a lot more service repositioning if things don't pick up at WS. Their April traffic was up only 39% on a 53% increase in available seat miles. (See http://www2.cdn-news.com/scripts/ccn...3n.html?cp=wja for more detail). The month to month traffic figures (which WS does not highlight) has not been impressive since September 2002. In short, WS could use with a good schedule realignment to improve profitability. The Q1-2003 financial results and April traffic figures support this decision. In short, WS expansion since Q4-2002 has not resulted in increased passengers or profits.

LeSabre74

Interesting that Jazz seems to be doing well enough with flights to Sudbury. And didn't YXS-YVR used to be one of the busier routes in Western Canada for Air BC and CRA? I'd be surprised is WS scaled down there. Maybe we are seeing that some routes just don't justify 737 service, and that's why God created the Dash-8

Fisch

Sorry, are you saying you think WS will reduce service to YXS or will not?

[This message has been edited by Fisch (edited 05-12-2003).]

LeSabre74

I was guessing that WS wouldn't reduce service to YXS (As YEG Guy suggested). When I flew out of there last summer, the F28 was pretty much full and it seemed like the WS flight leaving at the same time was pretty busy as well. I think there were four AC flights that day to YVR?

B767

Maybe the difference is that WJ is making money while Jazz is losing money?

tracon

Even AC and CP managed to figure out 10 yrs ago that these markets weren't profitable with jets. Maybe Clive hasn't learned from the mistakes of others.

WR Cage

Okay message received, YXS is a decent route. Where then are the short haul routes that have seen a decrease in traffic because of the current economic malaise and fee gouging? WestJet has always complained about the drop in short haul traffic due to fees, but I get the impression that all routes are busy (from this forum). I ask because I keep hearing about a major schedule adjustment at WS if the security fees remain de-stimulative, but nothing happens.

There is a lot of money in WS stock that depends upon the growth streak continuing. Performance has lagged in the past six months despite the increased attention to longer haul routes and the cutback in service on YVR-YLW and YEG-YYC and suspension to Thompson. There has to be more to this than daily service to Sudbury and Sault St. Marie.

This news item has both an investment and customer service angle to it. I’m hoping that WJA.T does not turn into another NT.T.

tracon

This is just a case of the squeeky wheel trying to get the grease. Clive thinks he has alot of power in the industry and he tries to use it to his advantage and his advantage only.
Whether a passenger flies YHM-YYM, YHM-YVR or YYZ-NRT, that passenger will only clear security once, so why should security fees be different for length of distance travelled?

keithguy

There have already been some minor adjustments (I don't recall any mention of major ones). YEG-YYC had a fair number more than 6 dailies, I think WS also has cut back on YHM-YOW, I am not sure there.

Ah... Sure, especially since multiple other carriers, including AC's own, Zip & Jazz, operate multiple short-hop flights.

So then why are security fees different for international destinations vs. domestic ones?

[This message has been edited by keithguy (edited 05-12-2003).]