Guest SLEUTH Posted May 12, 2003 Share Posted May 12, 2003 Welcome [sign In] To track stocks & more, Register Financial News Enter symbol(s) BasicDayWatchPerformanceReal-time MktDetailedChartResearchOptionsOrder Book Symbol Lookup Press Release Source: WestJet WestJet Withdraws Service from Sault Ste. Marie and Sudbury Monday May 12, 12:01 pm ET CALGARY, ALBERTA--WestJet today announced it will withdraw service from Sault Ste. Marie and Sudbury, Ontario effective September 9th and 10th respectively. WestJet has been flying into these two Ontario destinations since December 2001. ADVERTISEMENT WestJet's Vice President of Marketing and Sales, Bill Lamberton, commented today: "It is unfortunate that market conditions have forced us to make the difficult decision to withdraw service from both Sudbury and Sault Ste. Marie. Since entering these markets in December of 2001, WestJet has worked hard to stimulate air travel from these communities. The past 18 months has shown us that we are able to generate strong traffic in the summer season, but are unable to sustain strong year-round ridership. "It is our belief that the poor level of demand in the slower seasons are in large part a result of the continuous increase in taxes and fees that are being imposed on Canadian travellers by the Government of Canada and other agencies. We will continue to lobby the government, as we have in the past, to reduce the taxes and fees that are disproportionately impacting many short-haul routes such as our routes east and west of Sault Ste. Marie and Sudbury. It is our hope that market conditions will some day improve, providing us with the opportunity to re-enter these cities with seasonal services. "We would like to thank the residents of Sudbury and Sault Ste. Marie and surrounding communities for their past support. We look forward to continuing our service until September 10, 2003." All guests booked on WestJet flights from Sault Ste. Marie after September 9th and Sudbury after September 10th will be contacted by WestJet to resolve their existing reservation. The 16 WestJet staff members that are affected have been offered options which include relocation opportunities within the airline. WestJet serves the 26 Canadian cities of Victoria, Comox, Vancouver, Abbotsford/Fraser Valley, Prince George, Kelowna, Calgary, Edmonton, Grande Prairie, Fort McMurray, Saskatoon, Regina, Winnipeg, Thunder Bay, Sault Ste. Marie, Sudbury, Windsor, London, Hamilton, Toronto, Ottawa, Montreal, Moncton, Halifax, St. John's (beginning June 16) and Gander (beginning June 17). WestJet is publicly traded on the Toronto Stock Exchange under the symbol WJA. -------------------------------------------------------------------------------- Contact: WestJet Siobhan Vinish (Pronounced Sha-von) Director, Public Relations and Communications Phone: (403) 444-2615 Fax: (403) 444-2261 Email: svinish@westjet.com Website: www.westjet.com Link to comment Share on other sites More sharing options...
Mitch Cronin Posted May 12, 2003 Share Posted May 12, 2003 "Siobhan Vinish (Pronounced Sha-von)" Well then isn't it spelled wrong??? Link to comment Share on other sites More sharing options...
wjaer Posted May 12, 2003 Share Posted May 12, 2003 Link to comment Share on other sites More sharing options...
Guest GDR Posted May 12, 2003 Share Posted May 12, 2003 WestJet cuts flights to Sudbury, Sault Ste. Marie By ROMA LUCIW Globe and Mail Update As of September, WestJet Airlines Ltd. will no longer fly to the Northern Ontario communities of Sault Ste. Marie and Sudbury. The Calgary-based discount carrier, Canada’s second largest airline, cited weak market demand for the decision to withdraw service from the two cities. But it also blamed the government and other agencies for hitting up travellers with taxes and fees that make it too expensive to fly. “It is our belief that the poor level of demand in the slower seasons are in large part a result of the continuous increase in taxes and fees that are being imposed on Canadian travellers by the government of Canada and other agencies,” Bill Lamberton, WestJet’s vice president of marketing and sales, said in a release. “We will continue to lobby the government, as we have in the past, to reduce the taxes and fees that are disproportionately impacting many short-haul routes such as our routes east and west of Sault Ste. Marie and Sudbury.” WestJet has been flying to the two Ontario cities for nearly a year and a half. “The past 18 months has shown us that we are able to generate strong traffic in the summer season, but are unable to sustain strong year-round ridership,” it said. The company said flights to Sault Ste. Marie and Sudbury will stop on Sept. 9 and Sept. 10, respectively. Travellers who have booked on WestJet flights from Sault Ste. Marie after those dates will be contacted by the airline “to resolve their existing reservation”. The 16 WestJet employees affected by the closure have been offered options that include relocation opportunities within the airline, it said. WestJet also said it will re-enter these cities in the future if market conditions improve. Link to comment Share on other sites More sharing options...
Guest jimmy Posted May 12, 2003 Share Posted May 12, 2003 It's interesting that Westjet would abandon several profitable routes into these two cities. Clive said last fall during the competition investigation that the only unprofitable route Westjet had was YEG-YYC. Or maybe he was just embellishing the truth like a good real estate man. Link to comment Share on other sites More sharing options...
Guest snapper Posted May 12, 2003 Share Posted May 12, 2003 If you read closely you will see that the route was profitable only part of the year. I supose it broke even over the year. I'm sure the capacity can be used elsewhere. At least the employees will still have jobs. Link to comment Share on other sites More sharing options...
Guest M. McRae Posted May 12, 2003 Share Posted May 12, 2003 Another case of cherry picking. I note that they will continue service for the normally active summer period and drop the route in the fall. Whoever goes in to take over will be facing the leanest part of the season (fall & winter). Guess this action will however free up the aircraft and allow for a possible deferral on another new 737. Link to comment Share on other sites More sharing options...
Guest Dockjock Posted May 12, 2003 Share Posted May 12, 2003 So what if its cherry picking. Use it or lose it; companies aren't in business to make friends, they're there to make money. Link to comment Share on other sites More sharing options...
Guest M. McRae Posted May 12, 2003 Share Posted May 12, 2003 I agree and that is why I also believe all is fair in love, war and business. So let's not hear anymore about unfair seat sales, "rules of war", unfair competition etc. Good to see more people are coming around to that viewpoint. Link to comment Share on other sites More sharing options...
Guest Virtual Posted May 13, 2003 Share Posted May 13, 2003 Hmm.....if only the government would've allowed AC the same flexibility over the past few years. Link to comment Share on other sites More sharing options...
wizard Posted May 13, 2003 Share Posted May 13, 2003 Thats a nice option Westjet has as AC was forced by Mr Collinette to service all essential city and towns for the last two years. it's kinda nice when you can pull service before you bleed to death. Link to comment Share on other sites More sharing options...
Guest PortTack Posted May 13, 2003 Share Posted May 13, 2003 That was gone as of January 2003. Jazz dropped everything as fast as it could. Link to comment Share on other sites More sharing options...
Arctic Ace Posted May 13, 2003 Share Posted May 13, 2003 Air Canada enjoyed fifty years of protection from competition. Perhaps you should consider the flexibility enjoyed by the other airlines over the past few years as an "affirmative action" program. When all is said and done the playing field might finally be level and we'll all enjoy a healthier airline industry.Air Canada should then be allowed to enjoy the same freedoms that every other airline in Canada has been enjoying for decades. That includes the freedom to fail. The Ace Link to comment Share on other sites More sharing options...
Guest Virtual Posted May 13, 2003 Share Posted May 13, 2003 Not sure if it was more protection or interference .... but that's controversial history all argued here long ago. However, it would be great if all airlines could now have the same playing field. There's still a few items in the AC Participation Act that we'd gladly share with the rest ... just to help keep things equal. Link to comment Share on other sites More sharing options...
Guest Virtual Posted May 13, 2003 Share Posted May 13, 2003 Of course..... 2 - 3 months should be enough time to catch up on all those bills from those countless number of years we couldn't leave! What was Wizard thinking!! Link to comment Share on other sites More sharing options...
wizard Posted May 13, 2003 Share Posted May 13, 2003 Ya what was i thinking two years of dedt thanks portTack for the remineder of been held for two years were you dont want to be its a good thing for Westjet thay don't have to play by the same rules that Mr Collinette put in place for AC. Link to comment Share on other sites More sharing options...
Guest b52er Posted May 13, 2003 Share Posted May 13, 2003 No...........Collenette didn't force anyone. Remember.....it was a stipulation......and AC agreed. What don't you understand? Link to comment Share on other sites More sharing options...
Guest PortTack Posted May 13, 2003 Share Posted May 13, 2003 Whoa Nelly!..just adding missed facts to the thread I'm following. I agree with your facts and I've felt the pain myself from serving these communities...as I don't have a job by the end of this summer. Link to comment Share on other sites More sharing options...
wizard Posted May 14, 2003 Share Posted May 14, 2003 I understand that it was take the terms or let onex buy you out something like that was it not some graet deal MR Collenette come up with to try and set up his good friend at onex. Link to comment Share on other sites More sharing options...
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