Focus on Canada: New start-up airline to link US
A new Calgary-based tour operation is designed to connect the smaller cities of middle Canada with various leisure destinations, according to its founder, former WestJet Airlines executive Tim Morgan.
Plans are to start with three planes this fall that will focus on non-stop charter fights between several smaller cities in Western Canada and perhaps some US leisure destinations as well.
Former WestJet Airlines Ltd. executive Tim Morgan is behind the plan.
Mr Morgan, a WestJet co-founder who left the airline in 2005, said fledgling NewAir & Tours Group will begin with three planes this fall, focusing on non-stop charter flights between several smaller cities in Western Canada and one or two US leisure destinations.
The NewAir president said the upstart completed its primary phase of financing late last month, and is on track to raise more money in the coming weeks to give it a total of about $50-million.
Nearly 150 employees are expected to be hired for this fall’s launch, Mr. Morgan said in an interview at his office near Calgary International Airport with Reporton business.com. The company has about $50 million in capital.
“During winter, service will be offered from Western Canada to one or two destinations in Mexico and/or the Caribbean. In summer, NewAir intends to shift its attention to domestic routes, flying between Western Canada and a single eastern destination for a limited time, perhaps rotating between Montreal, Quebec City, Halifax and St. John’s,” according to the report.
By the end of 2009, NewAir plans to have six planes in its fleet, followed by another six aircraft by the end of 2011.
“But for now, the goal is to have NewAir take advantage of shifting seasonal demand from travellers in the West, in what Mr Morgan calls ‘Middle Canada’ – smaller cities often neglected or under-served by WestJet, Air Canada and tour operators,” according to the report.
NewAir, the temporary name for the tour operation, expects to reveal its new name about two months before its first flight. A list of 30 potential names has been narrowed to a half-dozen.
Three types of narrow-body aircraft are being considered, in a single-class cabin that seats from 110 to 140 people. The business plan calls for McDonnell Douglas MD-87 jets, but MD-90s are also possible, as are Boeing 737s.
“Your knees won’t be up to your chin,” Mr Morgan said, adding the planes will have leg room even as he seeks to control costs.
Stuart MacDonald, who founded Expedia.ca in 2000 and is now president of cruise vacation site tripharbour.ca, said NewAir should be able to weather high fuel prices because of its decision to rely on many revenue streams such as hotels, local tours and airport transfers.
David
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