Quote:
Originally Posted by Johnny Aussie
Prompted me to look at their website again. Jetlines.ca
The plane looks better now... although I thought they were going with Airbus?
Best quote ---> "The airline plans routes that avoid direct competition with current airlines." It also says further down the landing page, "From its base at Vancouver International Airport...." Knowing that they also stated their first routes are to be in Western Canada, what routes does that leave? Unless their business plan has changed. I am not sure how that's going to work.
|
Ok. I took the time to read their prospectus filed Nov 26. Net proceeds for the initial offering to fund: crew training for initial 2 aircraft, networking plan, prepare and fit 2 leased aircraft, marketing, reservation systems and working capital.
Also a few tidbits:
- two B737 classics @ 148 seats w/winglets to be operational by June 2015. Budget allows for up to 7 more 737classic leases over first 36 mos.
- Deposits for 21 more aircraft including the more fuel efficient 737-700NG and also some 737-800NG for eastern routes and sun destinations. Single aircraft model fleet. Will transition to the MAX when possible.
- Fleet maintenance by Skytec @ YVR
- single class service with low base fare and a la carte services such as wi-fi. 30" seat pitch and equal or wider seats than competition.
- Point-point service in Canada. By direct competition they mean jet service only. So offer jet service on routes that WJ and AC mainly serve with turboprop (Q400s) or offer jet service on underserved or unserved routes (a la original Wetjet). Also mention service to non-major, lower cost airports where possible?
- Their 'proposed' initial route map shows service to all major Western Canadian cities except YYJ&YYC. Low cost jet service to Okanagan, Prince George, Fort St. John, Fort Macmurray, YEG, YXE, YQR & YWG possible. I would imagine interline agreements with Asian carriers and maybe Iceland Air are possible.
- they plan on applying immediately to operate into the US, Mexico and certain Caribbean countries (sun dest.) from YVR
- they expect a significant increase in demand for air service across Canada over the next 10 years. They see a big opportunity in Canada for ULCC due to Westjet straying from its original LCC business model to one more based on the legacy carriers like Air Canada.
- Canada has high domestic yields - especially on some short stages. Seasonal sun destinations south from Canada are low yielding so bigger 737 needed.
- Air Canada (0.17 casm) and Westjet (0.14 casm and rising) have high cost structures compared to a LCC/ULCC models @ 0.09 average.
Of course they have many caveats - like a successful offering for starters