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Airline Insider-July/August 07 |
| Written by Brian Dunn | ||||||
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Air Canada has launched twice daily nonstop service from St John’s to Deer Lake. The Raytheon Beech 1900D service will be operated by Newfoundland-based Exploits Valley Air Services (EVAS), which has flown a single 18-seat turboprop between St John’s and Gander for Air Canada since 2004. The new route shifted some capacity from the daily Gander service when the Deer Lake route began on June 30. Air Canada and its commercial partners already have the most flights of any carrier to and from Newfoundland and Labrador, an airline spokesperson noted. The carrier has also launched a new daily non-stop service between Gander and Halifax using 50-seat CRJs and 37-seat Dash 8 aircraft operated by Jazz Air. COMPETITION BETWEEN CANADA’S TWO MAIN AIRLINES Canada’s two main airlines turned in some pretty impressive first-quarter numbers both in terms of profit and better load factors. And industry watchers expect more of the same for the rest of the year. And yet the improved performances have not boosted the airlines’ stock. Why? Part of the reason could be the arrival of a new competitor in the form of Porter Airlines operating from Ottawa and Montreal to Toronto City Centre Airport (with seasonal service to Halifax). Another concern could be environmental in the guise of some sort of tax on the huge amount of jet fuel burned by airlines. And both are fighting each other for market share, noted analyst Claude Proulx of BMO Nesbitt Burns in Montreal. “Air Canada wants to keep its market share and (WestJet’s) Clive Beddoe wants to take it away. We will continue to see competition in the Canadian market and Air Canada will suffer the most. WestJet will also suffer, but not as much because of its lower cost structure.” In addition, Air Canada parent ACE Aviation is in the process of being dismantled and its ownership of 75% of Air Canada’s shares will be transferred to the public and Proulx isn’t sure the public has any appetite for more airline stock. The analyst is more upbeat on Canada’s largest charter and tour operator Transat AT, which is becoming the largest tour operator in Ontario, making the company extremely profitable. “There are also more barriers for potential competitors to enter the tour market and I like their management. And their main competition is other tour operators like Sunquest and Signature, not Air Canada or WestJet.” Proulx said all three carriers are benefitting from the strong Loonie, but they’re also facing higher fuel costs. “Unfortunately, the two are linked. The reason why the dollar is so high is because oil prices are so high. If oil prices come down, so will the dollar.” WESTJET FILLS THE GAP Following the demise of Harmony Airways, WestJet planned to increase service from Vancouver with new non-stop flights to Toronto and additional service next winter to Hawaii, Las Vegas and Palm Springs, beginning in November. Harmony ended its Vancouver-Toronto service on March 30 and all other routes on April 9. OASIS HONG KONG AIRLINES EXPANDING SERVICE TO CANADA Low-cost carrier Oasis Hong Kong Airlines was scheduled to launch service between Hong Kong and Vancouver on June 28, its second route. Oasis says on its website that six-times-weekly services will be operated and one-way tickets start at $299 in economy and $1,399 for business class. Oasis says it has secured final Hong Kong Government approval but was still awaiting final Canadian regulatory approvals, which means it couldn’t sell tickets to Canadian residents. Vancouver will be its second route after Hong Kong and London/Gatwick, which it opened late last year. The carrier currently operates two Boeing 747-400s and recently purchased three more from Japan’s All Nippon Airways. It said it plans to add services to more European destinations as well as to Oakland and other cities in the US. Oasis offers two classes of service but tries to sell its tickets at rates well below established carriers. It will be competing on the Hong Kong-Vancouver route with Air Canada and Cathay Pacific Airways. CATHAY PACIFIC SIMPLIFYING TRAVEL FOR CANADIANS TO CHINA Cathay Pacific Airways has added three flights per week to its schedule until October 28, increasing the frequency from 14 to 17 flights weekly nonstop from Vancouver to Hong Kong, more than any other airline. “Summer is one of the busiest seasons so we’re pleased to offer more flexibility and convenience to our passengers travelling to Hong Kong or beyond to our extensive network in Asia,” said Philippe Lacamp, vice-president, Canada. “As demand grows, we will continue to increase service on this important route.” The carrier also plans to introduce the new Boeing 777-300 ER to its Toronto- Hong Kong service with three classes – first, business and economy. Cathay has ordered 18 777-300s with the first delivery expected in September. “Our new economy class will offer fixed-back seats that recline internally, so when passengers stretch out, they will not bother those sitting in the row behind,” said Lacamp. And with its recent purchase of Dragonair shares it didn’t already own, Cathay Pacific will make life easier for Canadian passengers travelling to China via Hong Kong. “We will integrate the schedules of both airlines so overseas passengers can reach their China destination faster.” TRADEWINDS MAKES DEAL WITH SKYSERVICE Florida-based Tradewinds Aircraft and Engine Services has been contracted by Skyservice Airlines to direct the charter operator’s Boeing 757 component management program. Under the two-year deal Tradewinds will supply and maintain Skyservice’s rotable components at the carrier’s main base in Ottawa. Terms of the agreement were not disclosed. ‘PASSENGER PROTECT’ READY TO TAKE FLIGHT Canada has launched its own version of the US no-fly list in an effort to strengthen airline passenger security screening in this country. The so-called Passenger Protect program was first announced in August 2005, but plans for its launch slipped from a 2006 target to 2007. Passenger Protect requires Ottawa to create a list of people who may pose “an immediate threat to aviation security” should they attempt to board a flight. Airlines will be able to screen passengers against the list through a secure online system. If a person is identified as a possible match with an entry on the list, the carrier will contact Transport Canada for confirmation of identity and a decision on whether or not the individual will be allowed to board the flight. “Canadians want to fly secure, and Passenger Protect is a significant step forward. We must remember that Canada is not immune to the threat of terrorism and we must remain vigilant,” said Transport Minister Lawrence Cannon. “Passenger Protect will not only make Canada’s aviation system more secure, it will also help keep the world’s skies safe by reaching beyond Canadian borders to screen everyone getting on a flight to Canada,” he added. AIR TRANSAT FLIGHTS FOR UK LEISURE TRAVELER Air Transat is offering direct flights to London/Heathrow from Toronto/Pearson on behalf of Transat Holidays in Canada and Canadian Affair in the UK, both Transat subsidiaries. The twice-weekly flights are designed to suit the leaisure traveller and will operate each Friday and Saturday. The UK remains the largest Europe-Canada market for tourism and the second foreign market overall for Canada, after the US. Each year, approximately 800,000 British tourists visit Canada. Flights will be operated by an Air Transat Airbus A310 aircraft with two passenger configurations, Economy Class and Club Class. During the summer Air Transat also flies from Canada to London/Gatwick, Manchester, Birmingham, Exeter, Newcastle, Glasgow, Edinburgh and Belfast. |
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