Guest Posted January 4, 2017 Share Posted January 4, 2017 Any bets we may see this in the purview of the CTA in the near future or perhaps the competition bureau? January 3, 2017 6:10 pm Discount company NewLeaf Travel says ‘sorry Alberta’ and cancels Arizona, Florida flights By Erika Tucker Online Supervisor Global News Winnipeg-based discount travel company NewLeaf announced in a Facebook post Tuesday it will cancel its planned flight service to Phoenix-Mesa in 2017 in a case of what it calls “the big guy squishing the little guy.” “We didn’t necessarily expect to receive such strong competition on a route that was never served before and within hours of our announcement … that airport [Mesa] had been contacted by WestJet to put service in,” director of marketing and communications Julie Rempel told Global News. “Despite all our efforts, in order to make it profitable, we just felt at this time we couldn’t turn that corner.” The post attributed to Jim Young said “when an airline in Canada found out that NewLeaf was servicing Phoenix-Mesa they too decided to follow our schedule” and lowered its fares. “We are very sorry, Alberta, but we cannot offer service to Phoenix-Mesa this year,” reads the post. “This is a classic case of the big guy squishing the little guy so that the big guy can profit more…We sincerely hope and in fact challenge the other airlines to keep the fares low for you so that you can still travel south for the winter.” The statement says the planned winter Florida route from Hamilton, Ont. will also be postponed. WestJet spokesperson Lauren Stewart told Global News the Greater Phoenix area is “a very competitive market served by numerous airlines with WestJet included among them.” “The airline business is more challenging than it seems and this airline appears to be blaming one airline for their woes in a particular market without providing the travelling public the full story.” NewLeaf said it’s in the process of refunding customers their tickets, but can’t cover additional travel-related expenses. “We wouldn’t be offering additional compensation for travel not booked through NewLeaf,” Rempel said, adding that while customers may be upset, the company has been “overwhelmed” by support from the public. “This wasn’t an easy day for us and it wasn’t an easy decision for us but in order to…be in business for the long haul, we needed and wanted to make these decisions that smartly affect the longevity of NewLeaf. “Our motto is to continue to get people to their destinations affordably, so when we had to do this… it just is not happy day.” Watch below from Nov. 2016: Are new low-cost airlines charting a new course towards cheaper fares in Canada? As Reid Fiest reports, the entry of NewLeaf Travel is showing some fares are decreasing. Link to comment Share on other sites More sharing options...
internet Posted January 4, 2017 Share Posted January 4, 2017 WestJet isn't stupid enough to bail on those flights now. I'm sure they won't be back next year though. Clearly only reason for them was to damage NewLeaf - how ironic Link to comment Share on other sites More sharing options...
spreadsheet Posted January 4, 2017 Share Posted January 4, 2017 Why was the Florida from Hamilton route cancelled? Link to comment Share on other sites More sharing options...
boestar Posted January 4, 2017 Share Posted January 4, 2017 That sounds an awful lot like what Westjet took AC to court for. Predatory pricing and unfair competition. Link to comment Share on other sites More sharing options...
thor Posted January 4, 2017 Share Posted January 4, 2017 Maybe not. I don't think WestJet matched Newleaf's fares. Link to comment Share on other sites More sharing options...
Seeker Posted January 4, 2017 Share Posted January 4, 2017 3 hours ago, boestar said: That sounds an awful lot like what Westjet took AC to court for. Predatory pricing and unfair competition. It's only unfair if someone else does it. Link to comment Share on other sites More sharing options...
Super 80 Posted January 4, 2017 Share Posted January 4, 2017 I am going to Phoenix in February and priced it out a few times, WestJet into Mesa or PHX was significantly more. No less than double every time I checked. However it was other family members advocating for trying Newleaf. Link to comment Share on other sites More sharing options...
Seeker Posted January 4, 2017 Share Posted January 4, 2017 20 minutes ago, Super 80 said: I am going to Phoenix in February and priced it out a few times, WestJet into Mesa or PHX was significantly more. No less than double every time I checked. However it was other family members advocating for trying Newleaf. Do you not feel that Westjet offers good value? Or maybe you're one of those people who thinks they should be able to fly across the country for 50 bucks - taxes in! Link to comment Share on other sites More sharing options...
Super 80 Posted January 4, 2017 Share Posted January 4, 2017 I was more making the point I didn't perceive WS to be being all that predatory wheras Tango and Zip couldn't have profitably taxied to the runway for some of the fares AC was putting out there at the time. I was actually arguing with the family that I didn't think Newleaf would be around come the end of February. WestJet is generally my preferred airline to the US. What non-rev privileges I have are nearly useless to me. Link to comment Share on other sites More sharing options...
Seeker Posted January 4, 2017 Share Posted January 4, 2017 19 minutes ago, Super 80 said: I was actually arguing with the family that I didn't think Newleaf would be around come the end of February. They'll probably last longer than the end of Feb. but that would be my worry too - that you might get a low fare but not be able to use it. Link to comment Share on other sites More sharing options...
Super 80 Posted January 4, 2017 Share Posted January 4, 2017 I have no idea, the last airline in North America to launch with anything resembling a war chest was Porter. I personally believe that Newleaf is a throwaway proof of concept to demonstrate the viability of the ULCC model in Canada to potential investors. If it fails, it fails as a low-risk, low-cost undertaking. It is succeeds, it folds as operated with Flair and off they go to the Foreign Ownership Star Chamber to do this properly and re-emerge as a real airline with a new brand. Link to comment Share on other sites More sharing options...
Seeker Posted January 4, 2017 Share Posted January 4, 2017 31 minutes ago, Super 80 said: I personally believe that Newleaf is a throwaway proof of concept to demonstrate the viability of the ULCC model in Canada to potential investors. If it fails, it fails as a low-risk, low-cost undertaking. It is succeeds, it folds as operated with Flair and off they go to the Foreign Ownership Star Chamber to do this properly and re-emerge as a real airline with a new brand. Interesting theory. Link to comment Share on other sites More sharing options...
CanadaEH Posted January 5, 2017 Share Posted January 5, 2017 15 hours ago, boestar said: That sounds an awful lot like what Westjet took AC to court for. Predatory pricing and unfair competition. The difference being AC couldn't profitably earn a dime to save its life.... From most AC quarterly/annual reports in the 2000's: "Results.... for a number of reasons, including without limitation, energy prices, general industry, market and economic conditions, war, terrorist attacks, changes in demand due to the seasonal nature of the business, the ability to reduce operating costs and employee counts, employee relations, labour negotiations or disputes, restructuring, pension issues, currency exchange and interest rates, changes in laws, adverse regulatory developments or proceedings, pending litigation and actions by third parties." When you're losing tends or hundreds of millions of dollars its hard to not come across as predatory when you match or offer cheaper fares than the other lower-cost competitor. I'm not surprised WJ's competitive response was to launch service not he same route (or routes). I am surprised that we did so at a higher fare. Link to comment Share on other sites More sharing options...
Lakelad Posted January 19, 2017 Share Posted January 19, 2017 . NewLeaf cancels more flights amid 'schedule change' Thu Jan 19, 2017 - CBC News Budget flight company NewLeaf has cancelled more flights in Ontario, B.C., Alberta and Nova Scotia for the next few weeks. According to a memo sent to passengers, four flights — all on Sundays — have been cancelled, effective Jan. 15: Hamilton to Halifax. Halifax to Hamilton. Abbotsford, B.C., to Edmonton. Edmonton to Kelowna, B.C. NewLeaf spokeswoman Julie Rempel told CBC News that the company had to make a "schedule change" for Sundays that will last for six weeks. "Passengers have either been re-accommodated or can travel with us on a different day," she said. Flights booked through NewLeaf are operated by Flair Airlines, a licensed Canadian company with pilots flying Boeing 737-400 passenger jets. Rempel said negotiations with Flair caused the cancellations. "It's a schedule change due to the fact that Flair needed an aircraft back, so we negotiated a schedule to accommodate with our airline partner Flair," she said. "It is not a route that is in jeopardy for the long term." NewLeaf also cancelled flights from Hamilton to Melbourne, Florida as well as Alberta routes to Mesa, Ariz., near Phoenix earlier this month. Rempel said the company is planning "huge increases" in frequency of service, but did not specify on what routes or when that would be announced. NewLeaf's first flight took off from Hamilton's John C. Munro airport in July. . Link to comment Share on other sites More sharing options...
conehead Posted January 19, 2017 Share Posted January 19, 2017 1 hour ago, Lakelad said: . NewLeaf cancels more flights amid 'schedule change' Rempel said the company is planning "huge increases" in frequency of service, but did not specify on what routes or when that would be announced. Link to comment Share on other sites More sharing options...
Guest Posted February 2, 2017 Share Posted February 2, 2017 NewLeaf to increase flights out of Edmonton. Note also the complaints re their handling in the same article. Amazing how people buy cheap and then expect good service. CONSUMER February 2, 2017 11:56 am Updated: February 2, 2017 11:57 am Discount airline NewLeaf nearly doubles flights at Edmonton International Airport By Emily MertzWeb Producer Global News Discount airline NewLeaf Travel announced its prices and destinations Wednesday morning. Handout - A A + Discount airline NewLeaf has upped the number of routes flying to and from Edmonton. On Thursday, the company announced it was expanding from nine departures and nine arrivals to 16 departures and 16 arrivals. Routes include an Edmonton-to-Halifax flight five times a week for as low as $39. That service will be available starting in June and through to September. A search Friday revealed a return flight (with stops) to Edmonton-Halifax-Edmonton in July would cost $478. [ The 2017 summer schedule also includes flights between Abbotsford and Edmonton five times a week and between Hamilton and Edmonton five times a week for as low as $19. A search Friday found a return flight (non-stop) to Edmonton-Abbotsford-Edmonton in July would cost $124. “Our customers have repeatedly asked for more opportunity to travel on the routes that we serve, so that’s precisely what this schedule provides,” Jim Young, president and CEO of NewLeaf Travel Company, said. READ MORE: Flight prices in Canada down 23% on routes served by low-cost carrier NewLeaf Edmonton lost service to Moncton but NewLeaf said it’s expecting to add it back. NewLeaf’s full summer schedule can be seen below. NewLeaf first starting offering flights at the Edmonton airport on July 29, 2016, with non-stop flights to 11 cities across the country. The company says it’s able to keep costs low by only charging the bare minimum for a seat on a plane. Anything else will cost you. A carry-on bag can cost anywhere from $31.50 if you pay online ahead of time, up to $90 at the gate. Some Alberta travellers were frustrated in early January after NewLeaf abruptly cancelled its planned flight service to Phoenix-Mesa for 2017. The company offered ticket refunds for cancelled flights. NewLeaf called the cancellations a case of “the big guy squishing the little guy.” On New Year’s Eve, wintry conditions on the West Coast left dozens of Calgary- and Edmonton-bound passengers stuck at the Abbotsford Airport for hours. However, what frustrated many of the passengers is the service they received from NewLeaf Travel. “We were on the airplane for an hour and 45 minutes before they took us off it,” passenger Stephanie Campbell said. “They didn’t provide taxi cabs or hotels. It wasn’t their concern. ‘Go find your own hotel on New Year’s Eve.’” “Eight hours and no food, no water was offered. NewLeaf couldn’t care less,” Campbell said. “They said nothing at all. Frequency of Routes NewLeaf Travel Summer Schedule 2017 ROUTES FREQUENCY Abbotsford - Edmonton 5 times / week Edmonton - Abbotsford 5 times / week Abbotsford - Winnipeg 9 times / week Winnipeg - Abbotsford 9 times / week Edmonton - Winnipeg 3 times / week Winnipeg - Edmonton 3 times / week Edmonton - Hamilton 5 times / week Hamilton - Edmonton 5 times / week Hamilton - Abbotsford 6 times / week Abbotsford - Hamilton 6 times / week Winnipeg - Hamilton 5 times / week Hamilton - Winnipeg 5 times / week Hamilton - Halifax 5 times / week Halifax - Hamilton 5 times / week Halifax - Edmonton 5 times / week Edmonton - Halifax 5 times / week Link to comment Share on other sites More sharing options...
Guest Posted February 22, 2017 Share Posted February 22, 2017 Seems that WestJet is concentrating on making life hard for "NewLeaf" February 22, 2017 7:03 am WestJet adds more summer flights at Winnipeg airport By Katie Dangerfield Online Producer Global News WestJet announced it will be adding more flights to its summer schedule. THE CANADIAN PRESS/Darryl Dyck Travellers flying around the country this summer will now have more flight options. On Monday, WestJet announced it’s adding more flights to its summer schedule. The airline will add non-stop flights from Winnipeg to Abbotsford, B.C., and increase flights to Edmonton and Hamilton. This comes nearly a month after its competitor, NewLeaf, increased flights to the same three destinations. The low-cost airline launched July 25, 2016 and offers discount fare flights around Canada. READ MORE: Discount airline NewLeaf nearly doubles flights at Edmonton International Airport WestJet summer additions: Service between Winnipeg and Edmonton will increase from 21 flights per week to 24 starting April 30. There will now be 60 weekly departures from Winnipeg to Abbosford starting in May. Daily service from Winnipeg to Hamilton starts May 1. NewLeaf summer additions: Service from Winnipeg to Abbotsford will increase to nine times a week starting May 1. Service from Winnipeg to Edmonton will increase to three times a week starting May 1. Service form Winnipeg to Hamilton will increase to five times per week starting May 1. The summer schedule for both companies runs from April 30 to the end of October. http://globalnews.ca/news/3265099/westjet-adds-more-summer-flights-at-winnipeg-airport/ Link to comment Share on other sites More sharing options...
Outside Looking In Posted February 23, 2017 Share Posted February 23, 2017 A lot of routes being added that were previously abandoned or never started as deemed uneconomical by WS that are suddenly very attractive again. Is the fact that there is a new entrant on the route just a coincidence? I will concede that with the Alberta slowdown the bar is set lower for justifying the deployment of assets. With all that said my question is 1) when oil is north of $70 and Alberta recovers and or 2) the new entrant is run out of the market how long before these routes disappear leaving airport CEO's crying the blues. Most of the folks in YHM have moved on to new opportunities however between YXX, YWG, and YHM there will be people around that remember the YXX-LAS flight that never got off the ground, the years of begging for additional capacity in YXX falling on def ears, the pulling down of frequency for YWG-YEG and the numerous routes that could not cut it in YHM. Don't blame network planning as it is all about strategy and economics however Enjoy it while it lasts. Link to comment Share on other sites More sharing options...
Guest Posted May 15, 2017 Share Posted May 15, 2017 WestJet returns to Phoenix-Mesa this fall CALGARY, May 15, 2017 /CNW/ - WestJet announced today it will again operate flights to Phoenix-Mesa Gateway Airport from Alberta this fall. After a successful inaugural season, twice-weekly nonstop flights from Calgary begin November 9 and a weekly flight from Edmonton begins November 11. Seats are available for purchase now on WestJet.com. "The Phoenix East Valley has proven to be a popular market for Canadian air travellers. The new Gateway Airport service complements our existing schedule at Phoenix Sky Harbor and provides air travellers with exceptional connectivity between the entire Valley and many Canadian markets," said Brian Znotins, WestJet Vice-President Network Planning, Alliances and Corporate Development. "We are pleased to be returning to Gateway Airport in November and look forward to another successful winter season." "Our continued partnership with WestJet is great news for Gateway Airport and the East Valley," said Mesa Mayor John Giles, Chairman of the Phoenix-Mesa Gateway Airport Authority. "Recent air service announcements and major investments by companies like Apple and Intel are key indicators of a healthy and growing regional economy." Details of WestJet's nonstop service to Mesa, Arizona: Route Frequency Days Effective Calgary – Mesa Twice-weekly Thursday, Sunday November 9, 2017 Edmonton – Mesa Weekly Saturday November 11, 2017 Link to comment Share on other sites More sharing options...
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