Threepoint From Canada, joined Oct 2005, 2147 posts, RR: 9
Reply 1, posted (5 years 11 months 2 weeks 2 days 11 hours ago) and read 5480 times:
Interesting timing. Given today's market conditions (not forecast at the time of Enerjet's formation), I wonder how well they'll do in the long term?
The oilsands are undergoing project contraction at the moment, US destinations are suddenly 15% more expensive thanks to the exchange rates and the hit to the savings of many of the wealthy older traveling demographic in places like Kelowna may herald a slowdown in tours and getaways.
To lure the WestJet faithful, they must offer even lower prices and/or destinations currently unserved from the western Canadian market.
The nice thing about a mistake is the pleasure it gives others.
NWDLstepson From , joined Dec 1969, posts, RR:
Reply 3, posted (5 years 11 months 2 weeks 2 days 9 hours ago) and read 5254 times:
I've been wondering what they are going to name the airline, Enerjet I have to admit I really like it!
I think for a start up, the Charter market is wise. However as threepoint says the slowing economy could make things much more difficult, the timing may be off.
WestJet was an extreme underdog if my memory serves me, and look at them fly!
Has anyone seen their aircraft yet?
YXXMIKE From Canada, joined Apr 2008, 310 posts, RR: 0
Reply 4, posted (5 years 11 months 2 weeks 2 days 7 hours ago) and read 5114 times:
The original co-founders that have started the company are some very smart cookies and knowing about this project for some time it has been interesting to see it develop. WS started in tough times as well, remember they got their big break because of 9/11 after Canada 3000 died out and TS made major cutbacks.
Focusing on medium niche markets such as YLW/YXS/YXX etc will provide them with a big leg up on the competition; don't compete, build your own niche. The above airports have always been neglected by AC & WS, I will however say that WS really helped all three of those airports in a big way especially YXX.
Routes such as YXX/YLW/YXS/YMM - CUN can easily be profitable because WS doesn't have the available aircraft to do them themselves and AC won't do it because they don't do vacation programs from these bases. Personally I'd like to see a Southern California destination such as SAN as it really wouldn't compete with anyone and would be popular with the growing retired market in each city.
YVRLTN From Canada, joined Oct 2006, 2477 posts, RR: 0
Reply 5, posted (5 years 11 months 2 weeks 2 days 4 hours ago) and read 4944 times:
First aircraft already registered, C-GOEJ - I wondered if the reg was a clue to the name!!
First off they are tackling the oil sands biz. Newer 73G's will be cheaper to operate and possibly more attractive as they are newer than the 734 of Flair and the 732's or Canadian North, Air North & Nolinor. However, I would also imagine they have higher lease rates, so will be interesting how well they compete. I would also imagine the oil contracts are somewhat locked in for a certain period, the article says so far they have secured no contracts so far.
REALDEAL From , joined Dec 1969, posts, RR:
Reply 6, posted (5 years 11 months 2 weeks 2 days 4 hours ago) and read 4919 times:
Quoting Threepoint (Reply 1): Interesting timing. Given today's market conditions (not forecast at the time of Enerjet's formation), I wonder how well they'll do in the long term?
Actually perfect timing as long as they haven't commited to pre-financial crisis mess lease costs.
It's the old zig zag, zig, when everyone else is zagging.
You'd think the MD80's would be a much better choice now for a start up with hundreds being parked, (so lease/purchase prices virtually zip) & oil & labour coming down in price with recession/depression.
With MD80's acquisition costs would have to be 1/10th of a 737-700 altho maintenance/fuel costs higher.
They could simply park them during day if not needed.
Allegiant seems to have their act together using MD80's.
Heathrow From United Kingdom, joined Sep 2005, 979 posts, RR: 0
Reply 8, posted (5 years 11 months 2 weeks 2 days 3 hours ago) and read 4883 times:
Quoting REALDEAL (Reply 6): You'd think the MD80's would be a much better choice now for a start up with hundreds being parked, (so lease/purchase prices virtually zip) & oil & labour coming down in price with recession/depression.
Don't get me wrong, I'd love to see a MD-80 with a candian reg, but Canada doesn't really ahve much luck with the MD-80. Two letters: SG
Anyways I can't wait 'till they start up. Maybe I'll have another choice next year!!
Viscount724 From Switzerland, joined Oct 2006, 25457 posts, RR: 22
Reply 17, posted (5 years 11 months 2 weeks 1 day 5 hours ago) and read 2108 times:
Quoting CX747 (Reply 7): Can anyone tell me why the co-founder of Westjet is no longer with the company?
Tim Morgan resigned rather suddenly in 2005. He was WestJet's head of operations. He says he disagreed with the direction their CEO Clive Beddoe was taking the company. Morgan thought it should stick more closely to the low-cost model, more like a Canadian version of Ryanair, rather than offering things like inflight live TV etc. See the 3rd posting in the following item dated last February for more.
When Morgan left WestJet more than two years ago, he cited "personal reasons" for his departure. These days, he's more forthcoming about events surrounding his decision, admitting that it had a lot to do with the direction the airline was heading and his own dealings with Beddoe. "I couldn't be there while the airline went left and I went right," Morgan says. "WestJet is becoming this premium economy carrier and my objective was always to be a cost-effective carrier."
Morgan, however, has no criticism of the role Beddoe played in the launch of the airline back in the mid-1990s and its future development. Although it was Morgan, as head of aviation firm Morgan Air Services, and co-founder Mark Hill, a Calgary real estate agent, who came up with the idea of bringing a low-cost carrier to Canada, the duo reached out to local real estate magnate Beddoe for his business savvy and his network of moneyed contacts. "Clive had a larger business background and was more recognizable," Morgan says. "He had a reputation, and for me to stand in a role like the one he played at the time would have been wrong. It may have put WestJet at a disadvantage."