Dash8King
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Tango Slashes Air Fares To Upstage New Rivals

Wed Jun 05, 2002 2:00 am


Keith McArthur
00:00 EDT Tuesday, June 04, 2002


Air Canada's discount brand Tango has temporarily slashed fares on the Toronto-Montreal-Ottawa triangle, as two new airlines prepare to do battle for budget passengers in the East.

Tango's Web site is advertising one-way fares of $69 between Toronto and Montreal or $59 between Toronto and Ottawa. The fares are $30 lower than Tango's usual best rates, but are only available between June 6 and 9 -- before upstarts CanJet Airlines and Jetsgo Corp. enter the fray.

Air Canada said it is offering reduced fares this weekend because it has seats left over after adding capacity in and out of Montreal for Sunday's Canadian Grand Prix.

But the investor behind Jetsgo -- who vowed last week that his $89 Toronto-Montreal fares would be the lowest available -- said he suspects Air Canada has another motive.

"I'm just bewildered. We haven't seen $69 fares ever since the demise of Canada 3000," said Michel Leblanc, the president and general manager of Jetsgo, which is launching service June 12.

"It doesn't add up. There's got to be a hidden agenda of some kind. I don't know what it is."

Jetsgo put its tickets on sale last week with a temporary two-for-one seat sale between Toronto, Montreal, Halifax, Winnipeg and Vancouver. The airline will use three 160-seat Boeing MD-83s.

CanJet Airlines, a division of Halifax-based IMP Group Ltd., is expected to start selling tickets this week. IMP chairman and chief executive officer Ken Rowe has scheduled a press conference today in Halifax to provide details of the launch. Mr. Rowe has said the new airline will fly between Toronto, Montreal, Ottawa, Halifax and St. John's on four Boeing B737 aircraft.

Air Canada's Tango has also introduced $94 one-way fares for travel through June 16 on Calgary-Winnipeg and Winnipeg-Edmonton flights. By yesterday afternoon, the seat sale fares were already sold out on most flights out of Winnipeg and on the Eastern triangle.

Air Canada spokeswoman Laura Cooke said Air Canada has not determined if it will have similar seat sales after Jetsgo and CanJet launch service. Air Canada maintains it has the right to match competitors' fares, but competition law prevents a dominant carrier from matching fares on a money-losing basis.

Copyright © 2002 The Globe and Mail


I hope that they don't hurt Westjet to much on the Western Triangle.
 
slawko
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RE: Tango Slashes Air Fares To Upstage New Rivals

Wed Jun 05, 2002 2:05 am

Seeing as how these fares are for flights that end before any of the new airlines even start flying I dont see how it is much of an attack on them.
"Clive Beddoe says he favours competition, but his actions do not support that idea." Robert Milton - CEO Air Canada
 
Dash8King
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RE: Tango Slashes Air Fares To Upstage New Rivals

Wed Jun 05, 2002 2:14 am

It won't effect Jetsgo they have a 2 for 1 seat sale however they can't boast about their $89 one way fares now.
 
Squigee
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RE: Tango Slashes Air Fares To Upstage New Rivals

Wed Jun 05, 2002 3:25 am

This line from LeBlanc is classic: "There's got to be a hidden agenda of some kind. I don't know what it is."

Hmmm... a subsidiary of a carrier with a monopoly on the Canadian market lowers prices below those offered by an upstart carrier. What could the hidden agenda be?  Insane
Someday, we'll look back at this, laugh nervously, and then change the subject.
 
Dash8King
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RE: Tango Slashes Air Fares To Upstage New Rivals

Wed Jun 05, 2002 6:53 am

Does Jetsgo have a FF program? I think I read some where that they were planning to get one. Also on Jetsgo commercials what do they mean they are the true discount airline?
 
Guest

RE: Tango Slashes Air Fares To Upstage New Rivals

Wed Jun 05, 2002 8:02 am

>>Also on Jetsgo commercials what do they mean they are the true discount airline?<<

I'm just guessing, but probably the discount airline they are refering to is Tango, which is just a subsidiary mainly there to knock out competition.
 
Dash8King
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RE: Tango Slashes Air Fares To Upstage New Rivals

Wed Jun 05, 2002 8:06 am

Canjet's Montreal-Toronto one way fare is $99 it will probably be lower tomorrow.
 
Noise
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RE: Tango Slashes Air Fares To Upstage New Rivals

Wed Jun 05, 2002 8:22 am

This is what makes me hate AC. They are just trying to exterminate the others. It's legal, but wrong and I dislike it! Let the others have a chance to survive, you already have a freakin' monopoly, what more do you want, AC?

Chris
 
sunbird
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RE: Tango Slashes Air Fares To Upstage New Rivals

Wed Jun 05, 2002 10:36 am

I agree Noise, I will no longer fly AC. They are cutting costs far tomuck for a ailine of that size and I have offen wondered where the cuts are comming from
 
Noise
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RE: Tango Slashes Air Fares To Upstage New Rivals

Wed Jun 05, 2002 10:45 am

I won't stop flying with them, I am just expressing how I dislike their actions. That's my opinion.
 
Dash8King
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RE: Tango Slashes Air Fares To Upstage New Rivals

Wed Jun 05, 2002 11:28 am

Well its not much of a stand to just say something because they aren't going to feel words if you disagree with the most recent actions taken by AC then you should do what sunbird is doing. Keep in mind though this is only a seat sale so prices will go back up but not to $99 dollars.
 
fly_yhm
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RE: Tango Slashes Air Fares To Upstage New Rivals

Wed Jun 05, 2002 12:05 pm

"I'm just bewildered. We haven't seen $69 fares ever since the demise of Canada 3000," said Michel Leblanc,


Huh unless he means strictly out of YYZ he doesn't know all of his facts seeing as how Westjet flys to YOW from YHM for $59.
Where will you spend eternity? He,s more real then you think!!!!!
 
Dash8King
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RE: Tango Slashes Air Fares To Upstage New Rivals

Wed Jun 05, 2002 12:09 pm

I am pretty sure he means strictly the YUL-YYZ route.
 
Dash8King
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RE: Tango Slashes Air Fares To Upstage New Rivals

Thu Jun 06, 2002 8:46 am

Surprisingly Canjet is still advertising $89 fares for YYZ-YUL.
 
yow
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RE: Tango Slashes Air Fares To Upstage New Rivals

Thu Jun 06, 2002 9:07 am

I did a little research last night, b/c I had to book a YOW-YYZ flight. The $59 Tango fare is only a promotion for the June 6-9 weekend. Even then, the cheapest I could find was $66.50 each way. For June 22, the best I could do was $76.50 one-way ($132, taxes included). Mainline was only an extra 15 bucks so I went with them. I would have chosen CJ but that's still a few days before their launch date into YOW.

If they ever try this after CanJet's startup they will surely be slapped with a cease and deceist order by the feds.
 
Dash8King
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RE: Tango Slashes Air Fares To Upstage New Rivals

Thu Jun 06, 2002 9:10 am

I thought that the fare was only offered until the 9th and you could use it after that. Don't know why Globe And Mail chose this title then because it won't have any competition on the 6-9th.