tcook052

http://business.financialpost.com/20...estern-canada/

A group of aviation veterans is looking to launch a new ultra-low cost carrier in Vancouver next fall that carries the potential of significantly cutting the cost of travel in Western Canada.

Canada Jetlines Ltd. will fly under the moniker “Jetlines.” It is being launched by aviation veterans Jim Scott and David Solloway as well as Dix Lawson and has garnered the support of the provincial government in B.C.

98103

I smell jetsGo

tentseller

You mean JetsGone?

keitherson

I smell Harmony Airways

gglave

I really think going forward the Federal Government needs to require these startups to put a big pile of cash in escrow. This pile o' cash would be used to pay to get passengers home from points afar when these startups go instantly bankrupt, ground all their planes and strand their passengers. After X years of successful operation this cash could be returned to the airline.

TravellingGypsy

Great. As if Jazz / Rouge needed an excuse to further downgrade their service level, now they can justify it in the name of increased competition.

AirTeras

Seems like they want to follow the "Spirit" model from the US.

AA_EXP09

I wish them luck, though I personally believe that the Canadian market cannot handle this type of carrier, considering that it is very easy to have $60+ in taxes on a domestic air ticket.
(now if federal money could be redirected to airports, that would be great-not that this government has been great with money anyhow.)

sokolov

A wonderful idea to increase market entry barriers in order to stop any idea of competition.

In Europe, travel agents need to cover the customer in case the travel company goes bust.

I believe there is also a case in the courts arguing that airlines are not allowed to collect the full fare upfront months in advance, but only in certain instalments nearing the actual departure date. I'm not sure if that was in Germany or Austria.

gglave

Hardly - You put $1M in escrow - Less than the price of a house in Vancouver. Should be pocket change to someone starting up an airline. The escrow account could pay interest. The rate of return on the $1M would probably be greater than the profit the airline would see...

$1M would fund flying home 1000 stranded passengers on AC & WS when the airline pulls a JetsGo and grounds their planes.

Market would address everyone else, who are still at home, but suddenly need to spend thousands on last minute tickets for their family when their holiday plans have been changed by a bankrupt airline.



How does that work? When I buy a ticket at CheapoAirlines.com who is is the 'travel agent?'

How does this work in scenarios like JetsGo when they were still selling tickets the day before they stopped operations?

GregWTravels

In the UK, you are covered by travel insurance if you buy a package holiday through a travel agent, but not if you buy a flight only or buy direct from the airline.

http://www.telegraph.co.uk/travel/tr...goes-bust.html

sokolov

CheapoAirlines.com - unless you buy directly from the airline. The airline, usually, is not a travel agent. If you buy directly from the airline it is a risk like anything else. If the company you buy from goes bankcrupt, it is your problem.

[/QUOTE]How does this work in scenarios like JetsGo when they were still selling tickets the day before they stopped operations?[/QUOTE]

Of course they do. Almost every airline finances the current operations with the tickets they are selling now. As long as enough people buy, the airline keeps flying. Usually.

Antonio8069

The new airline announced the appointment of its President at year's end:
http://business.financialpost.com/20...-as-president/
There is more info in the article about its financial backing.

Swarez

More insight into there operations, has there business model. Essentially Spirits business model. They have a price templete, not sure if they included AIF's, HST, etc.
Will be interesting to see if it works, they want to charge for Checked bags/carry-ons, something we still get included in our tickets on the 2 big guys.

http://gallery.mailchimp.com/3fe59de..._14_Nov_13.pdf

heraclitus

So they're going to charge for using a CC to pay for reservations? How do they (and other ULCCs like Allegiant) get away with that? I thought it was verboten under merchant agreements for merchants to charge a premium to use a CC?