Repercussions from Canada’s third largest airline bankruptcy
One immediate result of the demise of Jetsgo in Canada: higher airline fares.
Air Canada advance tickets were a third higher than the previous week, analysts said. A one-week advance ticket was 16% higher.
Air Canada spokeswoman Laura Cooke was quoted in Canadian newspapers as saying the airline has not raised its ticket prices, and that any changes are because of increased demand.
Demand for Air Canada tickets escalated last week when Jetsgo went out of business. “This activity is no different than any other March break or peak period when our planes fill up” said Ms Cooke. She added that “our current policy on competitive pricing will remain in effect.”
Low cost Jetsgo grounded its fleet without warning early Friday, March 11, stranding thousands of passengers throughout North America and left thousands of others holding worthless tickets, as hordes of families from across Canada were expected to flock to Florida and other sunspots served by the financially troubled two-year-old airline during the hectic March break.
It was no secret that Jetsgo appeared to be in trouble, said Christiane Théberge of the Ottawa-based Association of Canadian Travel Agencies, which represents about 14,000 ticket agents, tour operators and other travel professionals.
“It started around Christmas…cancelling many flights at the last minute. It was always due to technical problems, not the financial situation, but the air commissioner got many complaints,” said Ms Theberge.
Report by David Wilkening
David
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