Take-Off Delayed for New Low-Cost Airline
Prince George, B.C. – There’s been a delay in the launching of ultra-low-fare carrier Canada Jetlines Ltd.
Back in January, president David Solloway hoped the airline would get off the ground this summer with stops in places such as Prince George, but admits plans have changed.
“We plan to be in the air five to six months after we receive our financing,” says Solloway, who’s based in Richmond. “We’re being pursued by a number of financial options right now and we’re in the process of deciding which is the best for Jetlines and of course our shareholders. So we plan to do an IPO (Initial Public Offering) in September of this year.”
He says Jetlines is in the process of trying to raise $50 million and notes they’ve been delayed for other reasons too.
“We’re dealing with such a complicated issue and the airline industry in Canada is the most regulated industry in Canada,” says Solloway. “When you’re dealing with various regulatory approvals, both provincially and federally, you’re bound to run into some items that are taking longer than would be ideal.”
He acknowledges under the current time-line the earliest one could expect Jetlines to launch would be early next year and says a stop in Prince George remains in their plans.
“Most definitely. We’ve been talking to the folks at Prince George Airport for well over a year now and Prince George is a great opportunity for us,” says Solloway. “You now Prince George has lost all its jet service, it’s all turbo prop now, yet Prince George has proven itself through decades that it can support a jet service.”
He says the no frills airline plans to offer flights 30% to 40% cheaper than what is currently available and says similar low cost carriers have been successful in other jurisdictions.
“The ultra low-cost model is a proven model throughout the world. And Canada is actually the last G8 country that doesn’t have a low fare alternative airline.”
In addition Solloway says they’ll unbundle their services.
“For example we sell you a seat belt and a seat and if you’d like anything in addition to that it would be an additional charge. At the same token you don’t have to pay for anything that you don’t use.”
What areas will Jetlines serve?
“We plan to start service in Canada and then expand service to the United States and some spots in North America including Mexico and Central America.”
Comments
Seat, seat belt, that’s it, I like the concept. Let’s do it. Don’t like airplane food anyway. I generally don’t eat their food on my way to Vancouver. On longer trips, in Vancouver, I just pick up water and sub at Timmies.
Hope it does well.
too bad airport fees cost more than the flights.
Why has Prince George lost all its jet service ? The go cart seats are terrible.
Air Canada never offered jet service, and West Jet has rolled out their terrible Encore flights. I believe they’ve swapped out the jets for more flights instead. Better for flexibility, but I do miss the jets. Sucks that we pay the same price for a less comfortable flight with fewer services.
What would be nice was at least one flight out to edmonton a day, similar to the calgary service.
Seems rather strange that we would build a 11,500 ft runway, and then discontinue our jet service to Prince George. Hmmmmmmm.
Would be nice if they got the financing sorted as a little more competition can’t hurt.
Even with this delay things are moving ahead at the airport…$4 million 2300m sq cross dock warehouse in the works.
What I’m trying to figure is just what exactly are they cutting out. All I get on Westjet is a glass of pop and some crackers. Surely that can’t be enough to cut fares by 40%. Maybe they’ll charge for carry-ons. But still, if there’s that much room to cut the fares, either WJ and AC are rolling in the cash, or these guys are going to cut in an area that is a little concerning – like maybe pilots with barely enough hours, and less flight attendants.
“What I’m trying to figure is just what exactly are they cutting out. All I get on Westjet is a glass of pop and some crackers. Surely that can’t be enough to cut fares by 40%. Maybe they’ll charge for carry-ons. But still, if there’s that much room to cut the fares, either WJ and AC are rolling in the cash, or these guys are going to cut in an area that is a little concerning – like maybe pilots with barely enough hours, and less flight attendants.”
We’re currently getting killed on prices. With only two major airlines, they pretty much enjoy a monopoly and we’re forced to pay whatever they say. Australia/Europe have discount carriers as well. A 1 hr flight like PG to Vancouver would only cost you $100 roundtrip in those areas.
“Seems rather strange that we would build a 11,500 ft runway, and then discontinue our jet service to Prince George. Hmmmmmmm.”
The airport authority and feds may have one plan, but the decision to fly what plane and when lands on the airline carriers. WestJet doesn’t necessarily care if we’ve expanded our runway. They’re doing what’s best for their business.
Sparrow. This warehouse was planned many years ago. Originally there was a Calgary company that was going to build it. That fell through. Then there was some other plan that fell through,. Now it is going to be built by the Airport Authority with money gleaned from the Airport Improvement Fee’s that people pay every time they fly out of Prince George.
The question is. Is there really a need for this warehouse??? Where will the air freight come from considering there is none now, and not much hope of getting any in the future. In fact none of the planes that fly from Vancouver, or Calgary have room for air freight, (or very little)
The Airport Authority indicated that it is very unusual for a Airport Authority to build a freight warehouse, and that they were breaking new ground. I say it is unusual because it is the business of private business’s, not taxpayer funded entities.
This is just another way to spend the $3.5 Million dollars they collect in Airport Improvement Fee’s every year.
Granted that the Airport Authority involvment is not entirely normal but someone has to try and kick start this and get things moving. To me this is something that should fall right in IPG’s wheelhouse, meeting with industry and banging on doors in Victoria and Ottawa to grease the wheels. Instead they do little but hold dinky little job fairs and recruit for private industry.
Maybe once Todd is the area MP(can’t see the liberals or dipper retreads taking the seat:) things might happen especially with his work history at YXS. Ideally I would love to see something similar to what Winnipeg has in Centerport Canada. With PR container port growing by leaps and bounds we are perfectly situated to get a piece of the action.
centreportcanada.ca/about-us
Maybe turfing Tim McEwan was one of the dumbest moves the previous mayor and council made-at or very near the top on my list. How far along would we be if someone had ran with this plan!
old.250news.com/blog/view/12407
Sparrow states; “Maybe once Todd is the area MP (can’t see the liberals or dipper retreads taking the seat:) things might happen especially with his work history at YXS.”
What makes you think if Todd is elected, he can make anything happen? Conservatives, elected in the two PG riding, have a rich history for being insignificant, and ineffectual, backbenchers. If Todd gets elected he will do as much as Zimmer and Harris has done for PG and region… *crickets *crickets. Reality sucks sparrow, but there you go!
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