No YYC From Canada, joined Jul 2000, 73 posts, RR: 0 Posted (14 years 9 months 5 days 5 hours ago) and read 3994 times:
With the start up of ROOTS Air, we have a new entrant in the business flyer market. Can an airline that focuses on the business and upscale market survive in the airline industry? All the experts feel that you have to market more towards the mid-stream sector of society in order to attract enough people to fly. Isn't Skyservice (ROOTS Air) setting itself up for failure? Do any of you remember Attache Class with CP Air. It's target market was the high end flyer and it failed dismally. Any opinons?
AC183 From Canada, joined Jul 1999, 1532 posts, RR: 2
Reply 1, posted (14 years 9 months 5 days 3 hours ago) and read 3920 times:
Remember that with CPAir's Attache division that it was in the early '80's, during a downturn. Also, recall that the market was far more crowded then... there was regular CPAir as well as Air Canada on the major routes, Wardair was plying the skies with good service on many routes, Pacific Western was even transcontinental, Nordair, Quebecair, EPA... it was pretty crowded. Right now AC/CP have a large single market share, and alternatives are currently just developing: Royal, Canada3000, AirTransat, WestJet, CanJet, and regional carriers like Regionair, Capital City Air, Perimeter Airlines, Pacific Coastal, Bearskin Air, and others are just looking at where they fit in within this market, but there is an alternative market that is up for grabs right now, and none of the above carriers are really going upscale.
Anyways, as to RootsAir itself, I don't know. I'm concerned by their marketing seeming somewhat gimmicky. I think it's fair to say, however, that perhaps Virgin was kind of that way at the start, and now it's an established airline brand with a bit of a different image. Nonetheless I am also worried in that we haven't heard anything firm about who they will have interline agreements with. I think it could be interline feed that could make or break their operation. On the plus side, however, they have the advantage that they will only need to get a small share of the market to achieve success with their business plan, and I think there will be quite a few passengers who will try them, whether they stay with them or not is another question. I do think I should note, however, that I think AC would actually like RootsAir to survive, not to take too much market share, but to keep AC honest (I do think they feel the need for that within their own company, even) as well as to alleviate the pressure that any little thing seems to put on them by the media.
No YYC From Canada, joined Jul 2000, 73 posts, RR: 0
Reply 2, posted (14 years 9 months 5 days ago) and read 3906 times:
AC 183: I see your point, the market has changed since the 80's. However, I don't think the demographic that ROOTS Air is targeting is large enough. Perhaps in Southern Ontario or the Montreal - Windsor corridor, but not in the rest of Canada. I definitely agree with your point regarding interline service! I'll put my money on the table and say ROOTS Air is out in 18 months. ROOTS Air will go back to being Skyservice.
Cargyvr From Canada, joined Jul 2006, 0 posts, RR: 0
Reply 3, posted (14 years 9 months 4 days 23 hours ago) and read 3896 times:
I think that a lot of people are going to get tired of Air Canada ( I know I am). It's amazing how expensive ACA is... On top of a $900 ticket YVR-YYZ, if you wanted to upgrade into Executive First it would cost an addtional $2600. So I think Roots Air could work out. Does anyone know if they will paint the Skyservice aircraft into the white Roots Air livery??
Coast Aviation Researh Group
Marco From United Arab Emirates, joined Jul 2000, 4169 posts, RR: 11
Reply 4, posted (14 years 9 months 4 days 16 hours ago) and read 3889 times:
I hope Rootsair survives and becomes the second major airline of Canada, after the acquisition of CP by AC, Canada has no second major carrier!!! despite all the small airlines like Westjet...and Charters like Royal, Canada 3000, we need a major airline offering scheduled service to all over the globe!!!
AC183 From Canada, joined Jul 1999, 1532 posts, RR: 2
Reply 5, posted (14 years 9 months 4 days 12 hours ago) and read 3868 times:
I am not yet ready to predict whether or not RootsAir will last. There are several airlines jockeying for position, and I'm waiting to see what happens, as really nothing is clear at this point. I will venture to guess, however, that I think there will be a merger of two or more of the charters within 2 years, simply because of the way market shares seem to be fragmenting and changing.
As to RootsAir, one major problem I see with its image is that it may not have the image that BA or CX would want in a Canadian partner. However, if overseas airlines do manage to interline with RootsAir, the feed could be important enough to push them into a position from which they could survive. For instance, if a route from, say, YWG was operated only once a day, feeding even just 10 high-yield passengers to YVR for CX could really help make RootsAir viable. But I will wait and see more details on their plans, and on their partners before I make any guesses as to whether they succeed or not.
According to YYZ news from July 1, http://www.interlog.com/~rollers/pianews.html:
"The following is a matter of clarification regarding the establishment of the new airline called Roots Air. The new airline will lease in its own equipment, A320s and at least one A330 aircraft and these will be painted up in the Roots Air colour scheme and 3-class interior. Roots Air will be operated as a separate division of Skyservice Inc. and the charter carrier will continue to use its own A330 and A320s in a high-density charter role this winter and for the foreseeable future. Roots Air will become one more division of Skyservice Inc. and will operate under the Skyservice certificate, but aircraft will not be shared between the two airlines. At the moment, we do not have any details about which leasing companies are going to provide these "new" aircraft for Roots Air."