Guest M. McRae Posted July 18, 2003 Share Posted July 18, 2003 Talk about low fares. Westjet at 96.50 is the cheapest by far from YUL-YVR ..... promo, lostleader or perhaps attempting to increase it's market share. WestJet Web Fare $96.50 CAD Regular Fare $99.00 CAD Fri, 25 Jul Flight WS 629 WestJet Web Fare $196.50 CAD Flight WS 628 YVR-YUL AC/Zip lowest July 25 YUL-YVR $371.00 includes taxes and fees YVR-YUL JULY 25 ZIP $471.38 includes taxes and fees Link to comment Share on other sites More sharing options...
dagger Posted July 18, 2003 Share Posted July 18, 2003 I thought only Air Canada lost money to increase market share.... You mean WJA does it too? Link to comment Share on other sites More sharing options...
Guest M. McRae Posted July 18, 2003 Share Posted July 18, 2003 Their site has what they call Web Fares and the one from YUL-YVR is that. The cheapest fare for the same day YUL-YXX is $348.50 CAD pluse tax etc. Quite a difference. Link to comment Share on other sites More sharing options...
Guest windshear Posted July 18, 2003 Share Posted July 18, 2003 Check jetsgo and you'll find your reason for the fares. Link to comment Share on other sites More sharing options...
Guest M. McRae Posted July 18, 2003 Share Posted July 18, 2003 Jetsgo site refuses to yield a price quote for me (error message everytime). So what are they charging on their limited YUL-YVR frequency? I wonder why Westjet feels the need to match or better them? Could it be a case of underselling the competition? Link to comment Share on other sites More sharing options...
Croc Dundee Posted July 18, 2003 Share Posted July 18, 2003 Jetsgo came out with the wonderful idea of offering $99 between YUL and YVR. With Westjet starting this route on a non-stop basis next week, what do you think they would do? Jetsgo has been the carrier offering ridiculous fares over the summer so it will be interesting how long they can last. Link to comment Share on other sites More sharing options...
wjaer Posted July 18, 2003 Share Posted July 18, 2003 with their load factor dwn 9 percent in one month wonder the same question... Link to comment Share on other sites More sharing options...
Guest windshear Posted July 18, 2003 Share Posted July 18, 2003 My god, you're right. WestJet has been ruefully chasing after market share at the expense of profit for the last 7 years. Jetsgo is so much more efficient than WestJet I'm sure they can afford to sell transcon at $99. :-) WestJet has never been shy about competing. It's when the competition is against the law and the entire traveling public would suffer that the Competition Bureau gets involved. Your surface level look at fares implies there's a double standard. However, I'm sure if we were to compare WestJet's costs to Jetsgo's on YUL-YVR we'd find that WS has a lower cost per seat mile with the brand new 700s. It's called healthy competition. However, if WestJet did indeed have costs that were 2X as much as Jetsgo, then I would hope the Competition Bureau would get involved so consumers don't suffer in this country from higher fares than necessary. Are Jetsgo's $99 fares sustainable? I guess we'll find out. Are WestJet's historical fares sustainable when competiting with AC? The last 7 and a half years shows they are- at a healthy profit margin. Link to comment Share on other sites More sharing options...
Guest M. McRae Posted July 18, 2003 Share Posted July 18, 2003 I imagine they will last as long as they can but another carrier on what they might believe to be their discount route offering a lower fare with newer aircraft might be a problem........... (6) Link to comment Share on other sites More sharing options...
Guest jackofalltrades Posted July 19, 2003 Share Posted July 19, 2003 You guys might want to do a little more research before posting. I just went on the JetsGo site and priced montreal to vancouver and the lowest fare was just over 250 each way. So I am guessing only a certain percent of the airplane is sold at the lower price. As for load factor and Westjets operation costs. Lets see, 65 percent of 160 compared to 70 percent of 130 (700 and the 200 combined) Jetsgo wins with just over 105 pax compared to 90 on Westjet. (ya ya..I know you would have to have both companies doing the exact same flights for asm's) Jetsgo, paying roughly 200 an hr for the lease, slighty higher fuel burn then the 700, next to nothing for maintenance, minimum crews, maximum hrs from crews, crews paid crap, almost no overnights, almost no per diems. My guess is that jetsgo is at least 2 cents a mile cheaper to run then WestJet..which shouldn't be that hard to believe..the old C3 was 2 cents cheaper then the best that Westjet has done so far. Link to comment Share on other sites More sharing options...
wjaer Posted July 19, 2003 Share Posted July 19, 2003 Okay...Jetsgo gave away 3000 free seats last month and still only had 67% load factor. Yes our load factor has decreased 4% from last year. We did buy all those planes and add 4 new cities. They lost 9% in one month! So how is it that a company can give away 3000 seats to YZZ and have their planes little over half full and have a lower ASM cost than a company that had 71% load factor and had people buy seats???? You owed Royal stock didn't you? Link to comment Share on other sites More sharing options...
Guest toron1 Posted July 19, 2003 Share Posted July 19, 2003 "You guys might want to do a little more research before posting." Jackofalltrades Now you have me wondering..."next to nothing for maintenance" and, "Jetsgo, paying roughly 200 an hr for the lease"... How do you know? If Jetsgo is paying little for maintenance, how SAFE are their aircraft as their crews fly maximum hours. I think that the Royal blood is still there shuffling broken parts between the aircraft as the MEL relief expires. As far a C3, I agree that their costs were cheaper, because their stage length was twice as long. Link to comment Share on other sites More sharing options...
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