Transat To Launch Fleet Of Boeing 737S


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Transat to launch fleet of Boeing 737s as it scales back relationship with CanJet A.T., the country’s largest travel tour operator, said Thursday it will introduce a fleet of Boeing 737s next year to replace its aging Airbus narrow-body aircraft, bringing into question the extent to which it will continue its relationship with CanJet Airlines.

http://business.financialpost.com/2013/04/04/transat-to-launch-fleet-of-boeing-737s-as-it-scales-back-relationship-with-canjet/

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Transat A.T. Inc. to internalize medium-haul operations in 2014 Permanent and seasonal Boeing B737 narrow-body aircraft ?will be added to the Air Transat fleet

[Fr]

Montreal, April 4, 2013

Transat A.T. Inc., one of the largest integrated tourism companies in the world and Canada's holiday travel leader, will add Boeing B737 narrow-body jets to Air Transat’s fleet, which currently comprises Airbus A310 and A330 wide-body aircraft, beginning in 2014. In so doing, the company will internalize its medium-haul operations outbound from Canada to sun destinations in Mexico, the Caribbean and Florida, for which it has relied on a third-party partner since 2003.

Some of the new aircraft will be permanently attached to the fleet. In winter, when demand on sun destination routes is higher, additional aircraft will be introduced on a seasonal basis. Eventually, Transat plans to operate five narrow-body aircraft permanently and six seasonal aircraft in winter.

Air Transat’s wide-body fleet, which operates on the transatlantic market on an annual basis, will continue to serve certain sun destinations as well. In the years to come, the number of wide-body aircraft will be reduced and third-party carriers could be used in high season. In the same spirit, Transat should maintain its business relationship with its current partner, CanJet Airlines, beyond April 30, 2014 for certain flights. This strategy aims to ensure a so-called “accordion” fleet that meets the needs of the tourism market.

In preparation for the introduction of narrow-body aircraft to its fleet, Air Transat recently reached agreements with its employees that will enable a reduction in operating costs. Internalization of medium-haul operations, including the impact of the said agreements, should generate savings of some $8 million in 2013, $15 million in 2014 and $30 million per year in 2015 and beyond. In addition to the positive impact on operating costs, the grouping of operations under the same roof will pave the way for increased standardization of services to travellers and customer experience.

“A return to profitability remains our primary goal, and operating costs, particularly air costs, are an essential factor in profitability for any tour operator,” said Jean-Marc Eustache, President and Chief Executive Officer of Transat. He added: “Internalizing medium-haul operations has several advantages, including increased control over our aviation operations, the implementation of a more competitive cost structure and having Air Transat cabin crews on all of our flights.”

Every year, Transat markets more than 1 million round-trip seats outbound from Canada to sun destinations, mainly in the winter season, and more than 1 million round-trip seats on the transatlantic market between Canada and some 30 European destinations, mostly in summer.

http://www.transat.com/en/media/news.aspx?id=1828〈=en

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CanJet ponders launching itself as scheduled airline as client Transat scales back relationship

Apr 04, 2013 - Financial Post
Scott Deveau

The head of CanJet Airlines says his airline will be exploring its options – including the possibility of launching a new scheduled airline in Canada – after Transat A.T. announced it will scale back its partnership with the Halifax-based carrier in 2014.

Stephen Rowe, CanJet president, said Thursday he was happy that Transat planned to continue the relationship – albeit on a smaller scale – but his airline would need to seriously begin looking at other options, including cherry-picking certain high-traffic routes with a new scheduled service to replace the lost business.

“We’re going to definitely seek other opportunities,” Mr. Rowe said in an interview. “We already started that process some time ago.”

“I could run 737-800s between Toronto and Vancouver and get it going within the next one or two months if, as a company, we chose to do that.”

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I would cut a deal with WestJet. They can easily meld the -800's into the fleet and offer some jobs to the CJ folks.

And why would WestJet even consider it? This would be the 3rd time they've tried scheduled service. I've taken a look at a couple of the -800's they operate and they are pretty sh!tkicked!

Zero upside.

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And why would WestJet even consider it? This would be the 3rd time they've tried scheduled service. I've taken a look at a couple of the -800's they operate and they are pretty sh!tkicked!

Zero upside.

It is easy to forget how clean our fleet is. I actually had to fly with an MEL yesterday... I even had to pull the big annoying book out.

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  • 10 months later...
Guest longtimer

Note the remark about flying on behalf of Poland’s Itaka. This is presently done by LOT.http://www.itaka.pl/en/strony/4536.php

http://www.itaka.pl/en/strony/5.php

CanJet president announces company’s plan to launch its own travel tour operator

Scott Deveau | March 3, 2014 9:42 PM ET

More from Scott Deveau | @scottdeveau

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CanJet Airlines president Stephen Rowe announced the company will launch its own travel tour operator under either CanJet Vacations or CanJet Holidays.

Peter Redman/National Post filesCanJet Airlines president Stephen Rowe announced the company will launch its own travel tour operator under either CanJet Vacations or CanJet Holidays..

CanJet Airlines has announced to its employees that it plans to launch its own travel tour operator in Canada starting next winter.

CanJet, a subsidiary of Halifax-based IMP Group, currently provides charter flights primarily on behalf of Transat A.T. to vacation destinations using a fleet of Boeing 737s.

But the future of the low-cost charter operator was put into limbo after Transat announced last year it would be insourcing the bulk of the flying CanJet currently does on its behalf when their five-year contract expires at the end of April.

Related

CanJet Airlines employees confused about whether they will have jobs once Transat contract ends

CanJet ponders launching itself as scheduled airline as client Transat scales back relationship

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Stephen Rowe, CanJet president, cleared up some of the uncertainty about CanJet’s future in a memo to staff last Friday, in which he said the airline had received ‘tentative executive approval’ to to launch its own travel tour operator under either CanJet Vacations or CanJet Holidays. He asked the employees to help pick the name, and said a final decision would be subject to approval by the board.

“This will be an exciting opportunity for us all and we have the ability together to build some special that provides a wonderful holiday experience for Canadians travelling south but also allows us to create long term stability for our employee group that is in our control and not others,” Mr. Rowe wrote in the memo to staff.

Few details were given in the memo. But Mr. Rowe did say in another memo to staff in December that if the company’s plans came together, CanJet could be operating six aircraft next winter. Those aircraft would be in addition to a contract with Transat to operate one aircraft in summer and two in the winter months, he said.

CanJet said it would also be operating in Europe on behalf of Poland’s Itaka.

‘“This will be an exciting opportunity for us all and we have the ability together to build some special that provides a wonderful holiday experience for Canadians travelling south’

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In the latest memo, Mr. Rowe said the company will proceed immediately with taking the necessary steps for it to enter the tour operator business on its own as well in Canada with a flight program commencing in the winter of 2014.

“I am very excited that approval has been granted as it will ultimately allow us to take control of our business rather than being dependent upon others for our success,” he said.

CanJet will become the latest addition to the crowded travel tour business in Canada, which is dominated by players like Transat A.T., Sunwing Vacations, as well as newer and growing competitors, like Air Canada Rouge and WestJet Vacations in recent years.

Audrey Tam, interim president of CUPE Local 4044, said she was hopeful the news would help preserve the jobs of roughly 400 flight attendants her union represents at CanJet.

She said the union would be meeting with management in the coming weeks to get more details on the plan.

“There’s still a lot of information that we still need to know,” she said

http://business.financialpost.com/2014/03/03/canjet-announces-plans-to-launch-its-own-travel-tour-operator/

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