Is Podunk even on the cheap fare airline radar screens?

There are plans in the air to introduce a new low cost air service to Western Canada, as four former founders of WestJet put the finishing touches to their new airline called NewAir & Tours.

The group is currently raising the finances to get the operation up and running, as well as putting together a business model that it is said will fly travellers in smaller cities to larger centres and U.S. holiday destinations.

The idea has already taken off in one way, as one of the principles is involved with Classic Canadian Tours, a charter service that offers special flights to and from under served areas to larger markets in seasonal blocks.

Last week they had an ad in the Daily News providing details on their Terrace to Calgary and Edmonton service, which will see flights leaving the Terrace airport during the Christmas run up to take Northern British Columbians to Southern or Northern Alberta.

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At an introductory fare of $498 (with an Oct 26 booking) it offers a much cheaper rate than the larger carriers and without the need to change planes in the Vancouver hub.

This Christmas, the Terrace to Alberta flights will leave Terrace on Saturday, December 22 at 6:10 pm and arrive in Calgary at 9:00 pm,.The return flight will be on December 29 when travelers depart Calgary a 4:40 pm and arrive in Terrace at 5:25 pm.

The Edmonton/Terrace flights run to Edmonton on Saturday, December 22 with a departure out of Terrace at 12:50 pm; arriving in Edmonton at 3:30pm. The return journey takes place on December 29, when the flight leaves Edmonton at 11:30 am and arrives in Terrace at 12:20 pm. .

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The design plan for the new airline is to continue to serve these “under served” markets such as Terrace, on a more frequent and scheduled basis. It’s a process which could make Terrace a hub airline base for the Northwest if the project ever takes off.

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Considering the affiliation that they have with the current seasonal run out of Terrace, it would seem that it would be the local destination of choice for the new venture. The plan would provide for another airline service to take more business away from the Prince Rupert airport.

Over the summer a good number of Rupertites ended up flying out of Terrace, to make best use of their air miles plans. For whatever reason, the ability to book flights though Terrace as opposed to Rupert seemed to make travel plans easier to make. A situation that if it continues could very well be detrimental to the Prince Rupert airport.

The more air services that locate down the road, will continue to marginalize the local airport especially in the spring, summer and fall, when road travel to Terrace is more reliable.

There hasn’t been much made public in the way of activity at the Prince Rupert airport to attract these kinds of ventures, a risky thing if the airport is to grow and improve its image as a gateway to the province and beyond for Prince Rupert.

It’s a combined effort to make the Prince Rupert airport a successful operation, one that requires the input of the airlines, city and airport authority. While over the last few years, much has been discussed about improving access to the airport, as well as improving the frequency of flights to and from the city. It seems that we’re in a holding pattern locally, while transportation changes appear on the way for Terrace.

The local airport needs to become more proactive in their approach and more public with their plans; otherwise we’ll find that Rupertites are adding air travel connections to the list of items on their weekly shopping list for Terrace.

Former WestJet bosses hatch NewAir
BRENT JANG
From Monday's Globe and Mail
October 22, 2007 at 2:20 AM EDT

Four former WestJet Airlines Ltd. [WJA-T]executives, led by co-founder Tim Morgan, are drawing up plans to launch a new Canadian carrier.

The fledgling venture's first round of private financing has been oversubscribed, and the second phase is now under way, industry sources say.

Using the name NewAir & Tours, the business model is still being fleshed out, but the goal is to fly travellers in smaller cities to larger centres and U.S. holiday destinations.

NewAir's 55-page proposal is modelled after Allegiant Travel Co., a Las Vegas-based firm that runs a vacation division and low-cost airline with a fleet of 32 McDonnell Douglas MD-80 planes flying scheduled and charter service.

The four NewAir organizers have a proven track record at WestJet, and hope to repeat the tale of success from humble beginnings. WestJet will be sensitive to the upstart's potential impact, even though NewAir wants to emphasize charters and avoid direct attacks on scheduled service, an industry insider said.

Calgary-based NewAir believes it will carve a niche by pursuing routes either neglected or underserved by WestJet and Air Canada.

Mr. Morgan, former WestJet executive vice-president of operations, is spearheading the plan with William Lamberton, former vice-president of marketing. They are being supported by Gareth Davies, former vice-president of technical services, and Alan Mann, a former WestJet accounting executive.

Mr. Morgan and Mr. Lamberton declined to comment on their NewAir proposal. Mr. Davies and Mr. Mann couldn't be reached for comment.

“They're trying to fly under the radar and avoid head-to-head competition against WestJet and Air Canada,” one industry insider said.

Calgary-based WestJet, launched in 1996 with just three planes serving five cities, has grown to a fleet of 68 Boeing 737s in a network of more than 40 destinations.

Sources say NewAir's offerings could include charter flights with a seasonal schedule. For instance, there may be weekly non-stop service from Fort McMurray, Alta., to Vancouver for part of the summer, and that could switch to Fort McMurray to Reno, Nev., in the winter.

Consumers could choose to bundle flights with hotel rooms and, in some cases, tour packages.
Others have tried and failed to make a go of it this decade in battling WestJet and Air Canada: Canada 3000 and Roots Air shut down in 2001, Jetsgo Corp. closed operations in 2005, CanJet Airlines halted scheduled flights in 2006 and Harmony Airways wound down earlier this year.

Mr. Morgan, who resigned from WestJet in 2005, co-founded the carrier with Clive Beddoe, Donald Bell and Mark Hill. Mr. Beddoe, WestJet's executive chairman, became the lone co-founder left at the airline after Mr. Bell departed this past July as executive vice-president of corporate culture. Mr. Hill resigned in 2004 as vice-president of strategic planning.

Planes under consideration by NewAir include Boeing 737s (700 and 800 series) and McDonnell Douglas MD-80s, sources say. Depending on how the concept unfolds, service could start in the spring of 2008. But NewAir is seeking to be nimble and flexible, so the launch could be late next year, if more time is needed to nail down tour packages. Seed money for the venture could vary from $70-million to $100-million, all from private placements with investors.

“It's premature to say how much money needs to be raised. No destinations, no planes and no departure points have been determined yet,” said an aviation official familiar with NewAir. “The business model is fluid and moving. It's in a state of flux.”

Consumers in smaller centres across Canada complain that they have to increasingly travel to major airport hubs on connecting flights before getting to their final destination. So, NewAir has an opportunity to meet pent-up demand for non-stop leisure charter service from point to point, another official said.

Mr. Lamberton already runs Classic Canadian Tours, packaging December trips for consumers in markets such as Brandon, Man., Kamloops, B.C., and Terrace, B.C., who want to visit friends and family in Calgary and Edmonton. Classic Canadian also flies from Calgary and Edmonton to Klondike escapes in Whitehorse and has trips to see polar bears in Churchill, Man.

While NewAir would likely initially focus on Western Canada, the venture could easily expand into Central Canada.

Porter Airlines Inc., which celebrates its first anniversary tomorrow, currently flies from its base at Toronto's island airport to Montreal, Ottawa and Halifax. Porter hopes to expand within four years to smaller Ontario sites such as Sault Ste. Marie and Sudbury – two cities that would also fit NewAir's target market.