YVR Airport & Sea Island Developments Discussion

[Rusty Gull]

Interesting article from today's Globe. I wonder if this signals a return of non-stop service between YVR and KIX?

Former airline rivals team up to attract Japanese visitors

New tour operator hopes to revive a slumping tourism market

Brent Jang Transportation Reporter
From Friday's Globe and Mail

Published on Thursday, Sep. 02, 2010 11:55PM EDT
Last updated on Thursday, Sep. 02, 2010 11:56PM EDT

They once waged fierce battles for Canada’s skies, but now they’re teaming up to take on Japan.

WestJet Airlines Ltd. co-founder Mark Hill and a former arch-rival, retired Air Canada executive Robert Peterson, believe they have a formula that can help lure Japanese tourists back to Canada after years of declining visits.

The two former airline executives have homes within one kilometre of each other on Vancouver Island, but didn’t know they were neighbours until former Bay Street analyst Jacques Kavafian quietly approached them in May to launch a new tour operator, Canadian Pacific Travel Inc., aimed at the Japanese market.

Mr. Hill and Mr. Peterson say they don’t hold any grudges stemming from a corporate spying scandal, which ended in WestJet apologizing to Air Canada four years ago to resolve an espionage lawsuit.

The bitter feud seems like a distant memory, insist the aviation veterans, who have now turned their attention to nurturing CP Travel. “Business is business,” said Mr. Peterson, who retired in 2006 and moved from Montreal to Victoria.

Mr. Peterson, 59, jumped at the chance to work on the Japanese venture and Mr. Hill, 48, also eagerly climbed aboard. “What’s funny is once we realized we had places close by, we started to run into each other at local establishments,” Mr. Hill said.

CP Travel will bundle Canadian vacation packages for tourists flying from Osaka, Nagoya and Tokyo. Service is slated to begin next June from those three Japanese cities, and Sapporo and Fukuoka could be added in 2013.

Mr. Peterson, who served as Air Canada’s chief financial officer from 1993 to 2005, is CP Travel’s CFO, and Mr. Hill assumes the role of chief operating officer. Mr. Kavafian, 50, is CP Travel’s president and chief executive officer. The long-time analyst resigned last October after more than five years at Research Capital Corp.

Mr. Kavafian said he believes that with cheaper tour packages and the introduction of non-stop service from places such as Osaka and Nagoya, the slumping market for Japanese tourists will be ripe for a rebound. Longer term, he hopes to attract visitors from South Korea and China, which granted “approved destination status” to Canada in late 2009, clearing the way for more Chinese tourists.

Japanese visitors on CP Travel’s itinerary will arrive in Vancouver and Calgary, while connecting flights will be arranged for other parts of Canada, depending on the tour package for planes, hotels and sightseeing, Mr. Kavafian said.

“We will be collaborating with other tourism players,” said Mr. Kavafian, who has made 15 trips to Japan to conduct market research. Privately owned CP Travel has reached deals to acquire Vancouver-based Maple Fun Tours and Tokyo-based Ryoko Club, which have both been operating for more than 25 years in the tourism sector.

As Japan’s economy weakened and its residents diverted their holiday spending to other destinations such as China, inbound tourism from Japan to Canada gradually declined from a peak of more than 729,000 travellers in 1996 to fewer than 206,000 people last year, including overnight and day trips, according to Statistics Canada.

“The recession has left in its wake a new breed of Japanese consumer, one that is more cautious about spending money,” the Canadian Tourism Commission said a recent report on Japan.

CP Travel sees opportunities to help reverse the downward tourism trend and take advantage of a strengthening yen, which makes holiday packages to Canada cheaper for Japanese consumers. In the first half of this year, there were 96,475 overnight visitors from Japan to Canada, up 29 per cent from the same period last year, Statscan said.

CP Travel hopes to carry 35,000 customers during seasonal service next year, and has an ambitious goal to transport 155,000 people in 2013. Popular sights are expected to include Vancouver, Banff, Niagara Falls and Montreal.

“There will be a lot of skeptics, but there were skeptics with WestJet, too,” Mr. Hill said. Calgary-based WestJet began in 1996 with three planes and has grown into the country’s second-largest carrier, boasting a fleet of 90 aircraft.

Mr. Hill – who co-founded WestJet with Clive Beddoe, Tim Morgan and Donald Bell – resigned as the airline’s vice-president of strategic planning in 2004, after Air Canada filed an espionage lawsuit against WestJet.

Montreal-based Air Canada, which accused Mr. Hill of staging an electronic spying campaign, resolved the dispute in 2006. WestJet agreed to pay a $15.5-million out-of-court settlement and apologized for spying on Air Canada's password-protected employee website for booking flights.

One of CP Travel’s priorities will be securing seats on aircraft, a practice known as “lift” in industry jargon. Possible providers range from small outfits such as Calgary-based Enerjet, headed by Mr. Morgan, to scheduled carriers like Air Canada, which will start serving Tokyo’s Haneda Airport in January, complementing its flights at Narita International Airport.

No decision has been made yet on airline partners, but the aircraft type being eyed is a 230-seat Boeing 767. Access to two planes will be needed for the 2011 launch, with plans to expand to eight jets in 2013.

[twoNeurons]

Interesting. It's true that there will be a lot of 767s on the market for cheap in the next few years as most airlines are replacing them with 787s. And tours are probably the best use of them... as they won't be able to compete and be profitable unless they're full, being less efficient than the new generation planes.

Could we start to see charter flights to Japan?

Did WestJet start with old 737s?

[Yume-sama]

Originally Posted by twoNeurons

Did WestJet start with old 737s?

Yep, some of WestJet's Boeing 737-200's were 20 years old. They are all retired now, and they have one of the youngest fleets out there.

And they have 45 more 737-700's and 800's on order.

One is still flying for Aerogal in Ecuador, nearly 30 years old now

[twoNeurons]

I wonder if WestJet will ever expand into different plane types. Surely, the 737 can't be the best plane for EVERY purpose...

[Yume-sama]

That all depends on whether or not they eventually want to try and compete on the International market. The 737 is the best plane for what they do now~

It seems rather unlikely they'll try to branch out to Europe, Asia, etc., but you'd think they would probably go for older 767's and eventually 787's if they ever did.

I think what we'll see is them having more agreements with airlines, like they do with Air France, Cathay Pacific, China Airlines, and KLM.

It would be interesting to see if they ever start "small" and order some 737-900ER's that could provide them some decent range South.

Not to mention, perhaps, a full load to Hawaii without them having to weight balance it to the extreme to make sure it even gets there...

[red-paladin]

They've said that the benefit of having only one type of plane makes all the maintenance, etc much cheaper. So unless they wanted to get like 30 new planes of a second type, they would probably stay with this system until it was actually going to be cheaper to have more models than just one.

[zivan56]

Originally Posted by Yume-sama

Yep, some of WestJet's Boeing 737-200's were 20 years old. They are all retired now, and they have one of the youngest fleets out there.

And they have 45 more 737-700's and 800's on order.

One is still flying for Aerogal in Ecuador, nearly 30 years old now

737-200s are prized aircraft in some regions in the world, as they are one of the few planes (and I believe fastest commercial aircrafts) with gravel kits available. Nothing wrong with using old aircraft as long as they are properly maintained. However, costs begin to rise very quickly on such old aircraft.

[Vanzunator]

for summer 2011 Frankfurt – Vancouver Daily will be 747-400 (Summer 2010 was: A340-600)

http://airlineroute.net/2010/09/09/lh-fra-s11longhaul/

[Yume-sama]

The more 747's the better. We'll be running a bit lower on them by then~

[Chikinlittle]

Originally Posted by Vanzunator

for summer 2011 Frankfurt – Vancouver Daily will be 747-400 (Summer 2010 was: A340-600)

http://airlineroute.net/2010/09/09/lh-fra-s11longhaul/

As long as it's the 747-400. Several years back, they temporarily increased capacity to one of their older 747s (not sure if it was a 300 series or 200, but she was old and ugly inside lol) before transitioning to the 340-600.

[Johnny Aussie]

Some snipits from a CBC report

Chief commercial officer Peter Spring said Edelweiss started new routes to Canada this past summer, offering flights from Zurich to Calgary and Vancouver.

Spring said those new flights were a success and the airline is now setting its sights north.

We have decided to enhance our offer to Canada and to Alaska. That means we are flying twice a week to Vancouver and Calgary and once per week to Whitehorse and Anchorage from May 2011 onwards," Spring told CBC News on Friday.

Rest of article here:

http://www.cbc.ca/canada/north/story...r-flights.html

[Yume-sama]

Some YVR pics from a couple of days ago

The Air Canada Lounge in International Terminal, much nicer than I expected~ Way nicer than at YYC and YYZ.

http://www.flickr.com/photos/syume/4997283430/in/photostream/

My 777-300ER

http://www.flickr.com/photos/syume/4997305462/in/photostream/

Other peoples 767's

http://www.flickr.com/photos/syume/4997342842/in/photostream/

I talked with a few people and they were so impressed with the International terminal. It is beautiful.

A lot of people seemed to gravitate towards the aquarium near the food court, too.

[Johnny Aussie]

^I checked out your on-board pics. Hard to tell but were you in the first or second cabin? The pods actually look pretty narrow (especially compared to SQ's flying sofas!) Did you find them narrow? And how good are they to sleep on? I will be in 3K in a couple of weeks on the 77L from SYD, unlike your flight though, just checked the seat map for my flight and it is definitely not as empty as your flight.

[Gordon]

The Provincial Government has announced that they will no longer charge the provincial fuel tax on Transborder & International flights leaving the province,

YVR is startng a program allowng existing carriers can increase frequencies and not pay more Landing or Terminal Fees.

[twoNeurons]

Originally Posted by Gordon

YVR is starting a program allowing existing carriers can increase frequencies and not pay more Landing or Terminal Fees.

Whoa, that's a pretty innovative way to attract flights. Where did you find this out? Article?

[Gordon]

There are press releases on both West Jet's & Air Canada's websites mentioning both topics.

Landing & Terminal fees will be frozen at 2010 levels for 5 years.

[trofirhen]

This is the link to the front page of Routesonline, a magazine about, what else, air routes and route development, and of course in this case, the upcoming world routes forum this week in Vancouver. This should be an interesting forum, and I hope YVR gets routes activated in at least two or three places. (need I say 'including CDG?")
Worth watching for the outcome, I still think.
Notice that Gord Campell is eliminating the 2% fuel tax in BC?
He has his eyes set on the Asian Hub role for YVR. Great.
(I just hope they manage one or two in Europe. That'd be nice)

http://www.routesonline.com/
and the statement here...
http://www.routesonline.com/news/36/the-...-canadian-premier-to-slash-jet-fuel-tax/

[usog]

Hopefully the 'fuel surcharge' will go down now, it's ridiculous as it is every time I fly to Asia. Oh and Air Canada reinstating the daily flights to Beijing/Shanghai this winter, a good sign I guess.

Edit: http://www.news1130.com/news/local/article/104245--b-c-trying-to-make-flying-international-cheaper
"President of YVR Larry Berg explains that part of the idea is to get Lower Mainland flyers to rely less on Bellingham's airport to the south. "
Finally!

[Hourglass]

Originally Posted by twoNeurons

Whoa, that's a pretty innovative way to attract flights. Where did you find this out? Article?

Here's the article from the Vancouver Sun:

YVR expects boost with incentive program, tax break on international flights

By Brian Morton, Vancouver Sun September 20, 2010 1:59 PM Comments (2)

Vancouver International Airport (YVR) expects a boost in international flights if the provincial government's move to eliminate the fuel tax succeeds.

Vancouver International Airport (YVR) expects a boost in international flights if the provincial government's move to eliminate the fuel tax succeeds.
Photograph by: Les Bazso, PNG

Vancouver International Airport's position as Canada's Pacific Gateway is expected to get a big boost with two new announcements geared to attracting more international carriers and flights.

On Monday, YVR said at the World Routes 2010 forum in Vancouver that it will begin offering a five-year incentive program designed to increase routes and capacity by freezing landing and terminal fees at 2010 levels.

That followed an announcement by Premier Gordon Campbell that the provincial government would introduce legislation to eliminate the aviation fuel tax on international commercial flights by April 1, 2012, a move that's expected to cut costs collectively for the airlines by $20 million a year.

On average an airline would save $3,900 for a 747-400 flying from YVR to Hong Kong. It would save the same aircraft $760 flying from YVR to JFK in New York.

“It's expected that the [incentive program] will add the equivalent of eight to 10 new international daily flights, or approximately 1.1 million additional airline seats, over the next five years,” Vancouver Airport Authority president and CEO Larry Berg said while making the announcement.

Berg, who also commended Campbell's announcement, said that every new international long-haul flight into YVR generates between $5 and $8 million in wages annually and contributes between $8 and $15 million to B.C.'s GDP.

“Currently, one in 10 [flights] travelling to Asia is using YVR,” he said. “Certainly we can do better.

“We will freeze our landing and terminal fees to carriers at 2010 levels. Therefore, they can add capacity and add new flights without new charges.

“It's a very good economic generator for both the province and the region.”

Berg also expressed the hope that the new incentives will entice low-cost carriers currently using Bellingham International Airport to YVR.

Tourism Vancouver chair James Terry, who was also at the Routes Forum, said that he believes both announcements bode well for tourism in the city.

“It's wonderful news. Any incentives to help airlines use YVR as a destination has to be a benefit to Vancouver.”

Meanwhile, Air Canada said Monday that it is boosting international flights from Vancouver to Asia beginning this coming winter season, and that it welcomes the two announcements.

"Air Canada is significantly increasing international flights from Vancouver, our second largest hub, said Ben Smith, executive vice-president and chief commercial officer.

“We will be flying daily non-stop to Shanghai, Beijing and Hong Kong, representing an increase in capacity of 17 per cent compared to last winter.

"We applaud the B.C. government for their action towards eliminating the provincial aviation fuel tax on international flights. In addition, we thank [YVR] for their initiative to hold in line landing and terminal fees for a five-year period as we introduce these new services."

Campbell said the fuel-tax elimination would build on the momentum of the 2010 Olympics by helping YVR increase international flights and add passenger capacity.

“This change would help YVR and B.C. markets as the preferred gateway to North America and the world, bringing tourists and added economic activity to our province from around the globe,” Campbell said in a statement.

Campbell noted that if YVR expanded by an additional 10 flights, “more than $64 million annually would be added to the B.C. economy.”

Approximately 3,000 delegates representing 700 airports and 200 airlines are gathering for the two-day World Routes 2010 at the Vancouver Convention to network and do business.

While the development of new routes and highlighting new products and services are at the top of the forum's agenda, it is also seen as an opportunity to showcase B.C. and solicit new investment.

YVR, Canada's second busiest airport, currently serves 44 Canadian communities and offers connections to 24 U.S. and 27 other international destinations.

More than 16 million travellers used the airport in 2009.

[Yume-sama]

Originally Posted by Johnny Aussie

^I checked out your on-board pics. Hard to tell but were you in the first or second cabin? The pods actually look pretty narrow (especially compared to SQ's flying sofas!) Did you find them narrow? And how good are they to sleep on? I will be in 3K in a couple of weeks on the 77L from SYD, unlike your flight though, just checked the seat map for my flight and it is definitely not as empty as your flight.

They are surely not as comfortable as JAL's SkySuite, SQ's Cabins, and Emirates little condos in the air

However, the picture does make them seem deceptively narrow. They are actually quite roomy. I was sitting in the 5th row, in the 1st cabin.