LAXintl From United States of America, joined May 2000, 23466 posts, RR: 50 Posted (10 months 1 week 3 days 5 hours ago) and read 6590 times:
Cant say we did not see this coming....
CalJet the inderect air carrier which began service to Mexico with rather ambitious schedule from Denver, Houston, San Antonio, Los Angeles and Oakland using Xtra Airways, is pulling the plug on mere 3 weeks in.
The planned Mexico service which launched on January 9th, will now end immediately with last flights on February 5th.
Prior to this, CalJet was taking reservations through April 7th, with an expected follow on summer schedule to be released.
Carrier says load factors were lower then expected, combined with a decision by its Mexican partner to end the services.
The government of Mazatlan had invested $2 million into the CalJet program to help promote the new service.
CalJet is offering refunds for those bookings after February 5th.
LAXintl From United States of America, joined May 2000, 23466 posts, RR: 50 Reply 2, posted (10 months 1 week 3 days 1 hour ago) and read 5617 times:
The whole indirect air carrier concept is a bit iffy.
In essence these guys are nothing more than a tour operators chartering planes with steady flight schedules.
Unlike the normal charter business where you try to pack in 100% load factors with weekend flights to resorts these guys were out there competing against regular airlines for customers with seat-only sale also.
As regular airlines show us, loads and revenues earned can vary greatly from day to day, route to route and season to season while companies battle for the attention of consumers.
From the desert to the sea, to all of Southern California