Ultra low cost fares heading to Canada
Canada’s latest airline startup wants to bring the ultra low cost business model to Canadian flyers, claiming it will offer 40% cheaper fares than WestJet or Air Canada.
Vancouver based Jetlines is aiming to start scheduled services from next spring.
"We’re planning for spring 2015 to have the airline flying," said Canada Jetlines Ltd president David Solloway.
"We see this as a tremendous opportunity, as do many aviation analysts in Canada."
Initial routes will be in Western Canada although Solloway declined to elaborate further.
He was more forthcoming on airline’s business strategy.
Jetlines is aiming to fill a gap in Canada as the first true ultra low cost airline – keeping frills to an absolute minimum and charging fees for all ‘extras.’
"Basically you purchase a seat and seatbelt," said Solloway, adding that in-flight snacks and checked bags will incur fees.
Another tactic will be to "condense the airplane," cramming in more seats on each aircraft to keep fares low.
Solloway said the carrier will also focus on flying to secondary airports to keep costs down.
Analysts have said there is not enough demand to support an ultra low cost carrier in Canada, but Solloway believes attractive prices create their own demand.
"If you’re asking the question whether Canada could have a third airline, the answer is no but if you ask whether Canada can support an ultra low-cost, low fare airline, the answer is overwhelmingly yes," Solloway said.
Jetlines is still awaiting final clearance to operate scheduled services from Transport Canada.
A second ultra low cost startup is also looking to take flight in Canada.
Jet Naked will offer a similar business model and is led by Westjet co-founder Tim Morgan.
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