Quote:
Originally Posted by Biff
Non-stop direct flights to be offered from Winnipeg to London
By: Geoff Kirbyson
12:52 PM | Comments (0)
Five months after Zoom Airlines went out of business, an Ottawa-based tour operator has announced plans to step into the void and offer non-stop direct flights from Winnipeg to London.
Go Travel Direct’s service, which will use 757-aircraft from Finland-based Finnair, will begin in June.
It’s the first new service made available to Winnipeggers since Canada and the European Union reached an agreement last month to deregulate transatlantic air travel.
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Well sorry to inform you all, but this is not a sure thing. In fact the company is not even suppose to be selling tickets for this. See the Globe and Mail Article below.
Zoom's 'never say die' co-founder brought down to Earth - again
BRENT JANG
TRANSPORTATION REPORTER
January 21, 2009
Hugh Boyle is anxious to make amends with consumers after the flameout of Zoom Airlines five months ago. Yet as he unveils a bold new strategy to sell low-cost transatlantic flights, the details are getting in the way, forcing him to suspend ticket sales yesterday.
Mr. Boyle is attempting a comeback through Go Travel Direct, a tour operator that's seeking to win back travellers who were angered after Ottawa-based Zoom abruptly shut down last August. Go Travel, majority owned by Mr. Boyle, launched its campaign last week to sell cheap transatlantic airfares from Winnipeg, Toronto, Montreal, St. John's and Halifax, with flights slated to begin in June.
The revival strategy, however, has run into turbulence at the Canadian Transportation Agency. The regulator said yesterday that following inquiries from The Globe and Mail, it has launched an investigation into how Go Travel appears to have jumped the — in selling tickets for trips to London and Paris before CTA approvals have been granted.
Go Travel said it signed Finland's national carrier, Finnair Oyj, to provide charter service between Canada and those two European capitals. But CTA spokesman Marc Comeau said the airline only has a licence to fly between Canada and Finland, and no application has been made for an amendment to authorize the new European destinations.
"Go Travel has halted offering and selling those new flights," Mr. Comeau said.
While the CTA's review of Ottawa-based Go Travel and Helsinki-based Finnair has just begun, industry experts say Go Travel may have contravened rules last week by selling airfares to London and Paris. Under Section 59 of the Canada Transportation Act, a proper licence must be in place before any tickets are marketed and sold.
The co-founder of now-defunct Zoom hasn't been able to shake the allure of the airline business.
"I'm a Scotsman. Never say die, you know," Mr. Boyle said in an interview. "You have to look on the bright side of life. In business, the world's not quite what it was before, whether you're in banking, property or whatever. We've all got to try to reinvent ourselves."
Even though Canada and the European Union announced a new bilateral pact last month, they have yet to ratify the agreement, which is designed to spur new air routes. It would take an extraordinary exemption by the CTA to approve Finnair flights to other parts of Europe, given that the Canada-EU pact hasn't taken effect, said William Clark, a Toronto-based aviation lawyer.
A Finnair spokeswoman said the airline is still in negotiations concerning the flights. Mr. Boyle said he understands that the airline obtained the necessary European permits to operate charter flights on behalf of Go Travel. As for any Canadian approvals that may be missing, he said he's hoping "it's just red tape."
Mr. Boyle said his quest to expand Go Travel, which he founded in 2000, is important because he wants to keep Air Canada and WestJet Airlines Ltd. on their toes. Go Travel currently uses Toronto-based Skyservice Airlines Inc. to fly winter trips to the Caribbean.
"It's a sad day when we only have two major airlines in Canada. I don't really think consumers want to see a duopoly. This is life, and I'm trying to get the consumer in Canada the best possible price," Mr. Boyle said.
Mr. Boyle had owned roughly two-thirds of Zoom, which he co-founded in 2002 with his brother, John. They blamed last summer's soaring fuel prices for the carrier's collapse. The discount carrier racked up $94.2-million in liabilities while having few assets.
"There were people affected and their itineraries were disrupted. I'm terribly sorry that happened," Mr. Boyle said in the interview, apologizing for leaving roughly 4,500 Zoom customers stranded and 40,000 others with voided tickets, forcing them to rebook with rivals.
"The demise of Zoom was really unfortunate," but most Zoom passengers received refunds because their tickets were covered by credit card companies and travel agencies, he said.
Mr. Boyle said Zoom could have been saved if the Canadian government relaxed rules on foreign ownership of airlines, noting that he had financiers from outside Canada willing to help with a rescue.
As part of its marketing campaign, Go Travel used Zoom's e-mail distribution list to reach consumers. Round-trip fares were advertised in the e-mails and on Go Travel's website for $598, including taxes, for routes such as Toronto-London and Montreal-Paris. The discounted tickets, targeted for travel between June 19 and late October, were cheaper by at least 30 per cent than economy-class fares at Air Canada.
Mr. Boyle, 54, said he is optimistic that he will be able to work with the CTA to preserve transatlantic charters through Finnair, adding that Go Travel would be willing to hire a revived Zoom, under new ownership, for other future routes.
James Hultquist-Morrissey, a venture capitalist from Kingston, is seeking to persuade bankruptcy trustee Doyle Salewski Inc. to clear the way for relaunching the Zoom brand name. Mr. Hultquist-Morrissey, owner of private equity firm Globe Span Capital, also needs clearance from the CTA to return Zoom to the skies.
Scotland, where Zoom had developed a large customer base, is on Mr. Boyle's long-term horizon. Named "Scot of Year" in 2006 by the Scottish Studies Foundation of Toronto, Mr. Boyle said he's keen to attract customers on both sides of the Atlantic.
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