planenutz
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CanJet Relaunch This Summer

Wed Apr 17, 2002 6:14 am

From CBC News

CanJet to fly again

Last Updated Tue, 16 Apr 2002 15:24:15
HALIFAX - A former competitor in Canada's air wars is gearing up to return to the air.


CanJet first flew in 2000. The airline was sold to Canada 3000 about half a year later.
CanJet Airlines said it will resume flights this summer to cities in central and Atlantic. Further details on the return of the discount carrier are due to be released in May.

CanJet's parent company, I.M.P. Group of Halifax said in a news release that the relaunch was motivated by the federal government's new laws to allow fair airline competition in Canada.

CanJet started flying in September of 2000. The carrier's first flights used two Boeing 737s to take passengers between Toronto, Ottawa, Halifax, and Windsor.


However, just two days after taking to the air, CanJet filed complaints with the federal Competition Bureau accusing Air Canada of unfair price competition.


The Competition Bureau slapped Air Canada's wrist and ordered the dominant carrier to stop selling its special fares on five routes: Halifax-Ottawa, Halifax-St. John's, Halifax-Montreal, Toronto-Windsor and Ottawa-Windsor. That case is still before the Competition Tribunal.


Just over a month after starting operations, CanJet Airlines stopped flying its Toronto-Windsor route due to a lack of interest from the flying public.
In late March 2001, Canada 3000 bought CanJet in a $7-million all-stock deal. As part of a major expansion, Canada 3000 also bought Royal Aviation.


Canada 3000 subsequently filed for bankruptcy last November amid the fallout from Sept. 11 and competition from Tango, Air Canada's discount service.

Not all who wander are lost....
 
dripstick
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RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 6:43 am

Interesting. It's good to hear they're willing to give it another shot, just like Jethro [JetsGo].


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I wonder if they stick to the B737, and what series?

What's another word for thesaurus?
 
flyyul
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RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 6:55 am

Yeeaaahhhhhhhhhh ok...

 
Dash8King
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RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 7:06 am

This is like Ken Rowes 4th atempt at an airline. I wonder if they plan on being in the east again even though they will have new competition for jetsgo and WJ.
 
captaingomes
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RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 7:19 am

Seriously, is there room in the eastern market for ...
1. Air Canada
2. Tango
3. Conquest and SkyService
4. Royal2
5. Canjet2

Hmmm, it's starting to sound like the market is going to get awfully crowded again. Also, Westjet wants to play in the eastern sandbox too. Are there enough shovels for everybody? Is big bad Robbie the bully going to beat everybody up? Does clever Michel have enough tricks up his sleeve to outsmart the other players? How about little Kenny?

I wish everybody success. I like competition and choice. I hope new "underserved" routes could be served. However, if you try to envision what it will be like in one year, will we see all of the above playing in the same sandbox? I honestly don't think so. That is the state of the Canadian airline industry, unfortunately.
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
 
Dash8King
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RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 7:23 am

Maybe they'll give it a try up north? Doubt it but its healthy to dream.
 
Noise
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RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 7:41 am

Ok, so in the past 4 days we have seen the confirmation of 2 old Canadian airlines to start-up again. What does this mean? People are willing to give up AC and choose other airlines? The Canadian airline industry isn't crowded enough?

I would like to see new competiton in Canada. It was the high time for the east when Royal and CanJet was around, with too many flights between the golden triangle and YHZ. I wouldn't mind seeing that again!
 
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yyz717
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RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 7:46 am

heh heh.

The market's getting crowded.

I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
Guest

RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 7:49 am

When IMP Group sold CanJet to Canada 3000 they received $7 million in Canada 3000 stock the article reports. Candad 3000 went bankrupt, so that stock became worthless. In other words did IMP basically end up with nothing in the end? Why would they start again?

TNNH
 
Noise
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RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 7:58 am

Maybe they sold BEFORE the stock went down.
 
LY744
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RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 8:00 am

Are they going to give YQG another shot?  Smile

LY744.
Pacifism only works if EVERYBODY practices it
 
Dash8King
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RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 9:46 am

Why don't they just invest in Jetsgo?
 
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yyz717
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RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 9:47 am

Well, TNNH, you make a good point.

However, Canjet Mark II may have less competition this time with no C3 and assuming Royal MII stalls, and assuming WJ does expand further east.

A calculated gamble. OTOH, it could be even more crowded with CJ2, Royal2, WJ expanding in the east (if they do).

That's why deregulation and free enterprise are so much fun!

I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
Noise
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RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 10:00 am

When WJ started, they already had AC and CP in the west, and look where they are now. Now we have a strong AC in the east, and nothing else besides the Tango.

CJ actually has a pretty good chance this time around withought C3 and a much smaller JetsGo.

WJ seems to be slow in expanding to the east, so I don't think they will be much of a factor. Besides I think CJ will avoid WJ cities, that's what they did the first time around!

Give the new CJ a chance, they hav learned from their mistakes!

Chris
 
ywg777
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RE: Canjet

Wed Apr 17, 2002 10:17 am

Well I am sure they will serve Central Canada as it says up there. I think theres gonna be alot more new airlines poping up these days. I hope they are sucuesful. Any idea of types of planes they will use? 737's is my guess.

Shawn
 
spyderz
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RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 10:20 am

While I imagine Canjet Mark II can get a pretty good deal on some old 732's, wasn't Mark I considering the 717? I thought I heard somewhere that this plane was in their long terms plans, and if so we all know about AA's 717's. Maybe a possibility.
 
Noise
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RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 10:27 am

I heard that too. CJ had big plans, even wanting to serve the USA and International as they got bigger. Obviously that never happened, they never made it passed YWG. But now they are getting a second chance, so who knows.
 
captaingomes
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RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 10:46 am

I wonder if they are going after the same no frills customers as Westjet does. Or, I wonder if they might try something to the effect of JetBlue??? It seems to me that nobody seems to want to try the JetBlue idea here in Canada, namely cheap but well serviced domestic travel. Canada 3000 might have been the closest, but there's a certain innovative atmosphere at JetBlue, which was lacking at C3.

Who knows, AA 717's, a solid route network, a rewards program and strong capitalization! Then again, I think I'm dreaming in technicolour again.
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
 
yow
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RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 12:12 pm

CJ II could work well so long as they don't go after AC's bread-and-butter routes in the east. WJ too, i.e. avoid YHM. That does not mean don't fly to YUL, YYZ, YOW, YHZ, YWG, but not on the trunk routes where AC will try to slaughter them again. They could likely make a go of it flying point-to-point with multiple stops along a route and by flying to smaller towns like YFC, YSJ, YYT, etc.

I believe that Ken is still paying the leases on the 732s for at least another 18 months so it would make sense to fly them somewhere and then try and grab some of those AA 717s and get them certified in Canada when the leases expire.
 
fallingeese
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RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 12:33 pm

I think he still has the leases on the 732. That my guess for what they will use. The 717 has always been in the talks, but how cheap would AA part with some?
Mark McWhirter...Contrails Photography
 
yow
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Joined: Sun Jun 03, 2001 2:47 pm

RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 12:35 pm

Fallingeese, I don't think AA owns the 717s and I'm pretty sure they are being returned to their lessors awaiting a new buyer / user.
 
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yyz717
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RE: CanJet Relaunch This Summer

Wed Apr 17, 2002 12:48 pm

The 30 AA 717's are being returned to the lessors.

6 have already been placed with Qantas Link.

The remaining 24 are being marketed by Boeing & the lessor.

I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
ywg777
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RE: What Exactly Are WJ's Expansion Plans

Wed Apr 17, 2002 11:05 pm

In may we will find out where Canjet is going to go. Chances are very likely they will be sucessful in the east but with Royal and Westjet it could be a bit tough if they don't add flights quick before WJ and Royal get the good slot times. I think they will be serving YWG cause it did say Central Canada. Who knows they may and try to go head on head with WJ doing YWG-YTH if they decide to do so. It would also be intresting if they decided to go into the North and give Air North and First air a run for their money. Doupt that would happen though.

Shawn
 
airman99o
Posts: 871
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Go CanJet!

Thu Apr 18, 2002 12:03 am

So happy to hear this,
I was talking to my cousin, Ex FA at CJ. and she was telling me about this, she is not sure of the details, and all that but they said July to her. That is great news. More cometition for MapleFlot and Tango!! God I hope they suffer. mind you they will probably pull out all the old tricks and do everything in their power to kill off the new entrants.

Airman99o
Safety is Everyones Responsibility.
 
voodoo
Posts: 1959
Joined: Mon Mar 19, 2001 12:14 am

RE: Go CanJet!

Thu Apr 18, 2002 1:34 am

If Canjet could get 717s on the cheap,
who knows...they might be able to resist the inevitable Tango fare undercutting. Tango can't bleed cash that long, can it?
` Yeaah! Baade 152! Trabi of the Sky! '
 
airman99o
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RE: Go CanJet!

Thu Apr 18, 2002 4:53 am

Well seeing that Air Canada seems to have someone in their back pocket. Air Canada is losing tons and tons of money but no talk of it ever coming close to Ch11. Ya some priviatised airline!!
but if Canjet still plans on 717 and now could be at a very affordable cost they really could give Tango and Mainline a good run for the money.

Airman99o
Safety is Everyones Responsibility.
 
slawko
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RE: CanJet Relaunch This Summer

Thu Apr 18, 2002 7:44 am

I think this is just Kenny trying to stir the shit a little bit, and maybe scare off any investors that ML has...I think that IMP and Ken may be involved in a future start up call "eastjet" I have met a few people behind the startup and it seems like they are trying to get into bed with AC as a low cost co...but not directly owned by AC...
"Clive Beddoe says he favours competition, but his actions do not support that idea." Robert Milton - CEO Air Canada
 
yow
Posts: 2125
Joined: Sun Jun 03, 2001 2:47 pm

RE: Go CanJet!

Thu Apr 18, 2002 11:50 am

Give this a try and check out what it says: http://www.canjet.ca

They have obviously re-acquired their domain name and IMP seems to be serious.
 
Dash8King
Posts: 2658
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RE: CanJet Relaunch This Summer

Thu Apr 18, 2002 11:54 am

"...offer the same popular low cost bilingual service it provided prior to its sale in 2001."

I heard they were bleeding quite a bit before there sale to C3
 
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yyz717
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RE: CanJet Relaunch This Summer

Thu Apr 18, 2002 6:12 pm

I don't think the 717 is the right aircraft for a Canadian startup. Lease costs can be up to 10x that of leasing late-model 732's. Operating costs (incl mx) would only be about 1/3 lower.

The lease costs would be in USD also. Don't forget, AA was happy with the performance of the 717, they returned the 717 in part due to the high leasing costs.

Used 732's or DC-9-30's are the best choice. WJ didn't procure new(er) aircraft until after 5 years of ops.

I also heard that CJ was bleeding prior to its seduction/consummation by ANgUS.

I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
Vref
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RE: CanJet Relaunch This Summer

Thu Apr 18, 2002 9:23 pm

Unfortunatly back in 2000 CJ got things going a little late. Starting a small start up in Sept with two planes led to a slow start with mounting initial start up costs.
They also thought that Air Canada was their comp and not Royal, which did do damage.
This time around all training will be recurrent and flying to begin in July I, I think.
I wish them good luck and hope they can stay around.
Remember! She will fly over gross but not out of gas!
 
airman99o
Posts: 871
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RE: CanJet Relaunch This Summer

Fri Apr 19, 2002 1:13 am

Hey there
My cousin also had said that When getting back to work with CanJet, she said something along the lines of keeping your original senority number. not bad hey.
Also start up she said was around the first week in may, no offical date as of yet she said.

Airman99o
Safety is Everyones Responsibility.
 
ywg777
Posts: 1240
Joined: Wed Oct 13, 1999 9:40 am

RE: What Exactly Are WJ's Expansion Plans

Fri Apr 19, 2002 1:20 am

Thanks for the info on that. Does that mean a announcement is expected before may? any idea of when they plan on starting operations. Rumors Ive herd was the end of may. I have also herd of differen't types of planes they would be using. Is it true they want to go International?

Shawn
 
airman99o
Posts: 871
Joined: Sat Aug 21, 1999 4:15 am

RE: What Exactly Are WJ's Expansion Plans

Fri Apr 19, 2002 6:28 am

The announcement has already been made. They are going to start up again in the first week of July, the exact date otherwise has yet to be announced.
Not sure about the international thing. Would have to get at my cousin for more information. But for sure going to be using Ex CanJet aircraft as they will only be requried to pass Re-entry Training. Just like annunal Training.

Airman99o
Safety is Everyones Responsibility.

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