Quebec Government Subsidizing Jazz Internet Fares?

Fri Nov 15, 2002 4:08 am

Air Canada has reached a three-year deal with the Quebec government that will see its Jazz subsidiary offer "low, flexible Internet-only fares for half of the local traffic capacity between regional communities and both Québec and Montréal."

According to AC's media release, the government has agreed to buy $2.5 million worth of tickets for government and government-agency employees, while AC will maintain Quebec City-Mont Joli and Mont Joli-Gaspe until at least February 2003.

But what about the low Internet fares for the general public? Sound to me like Premier Landry is opening the public wallet to Air Canada as a way to get himself and his party out of the political basement, hoping taxpayers won't notice they're paying for Jazz's generosity.

Full media release
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RE: Quebec Government Subsidizing Jazz Internet Fares?

Fri Nov 15, 2002 4:18 am

The Quebec government is not subsidizing fares, they are moving more of their travel business to AC Jazz. Quebec uses Jazz for 65% of their travel ($6million) and they have committed to increasing this by another $2.5 million. From what I understand there are not very many regional players in Quebec so Jazz service is very important.

RE: Quebec Government Subsidizing Jazz Internet Fares?

Sat Nov 16, 2002 8:11 am

Jetsgo isn't very happy about this.

They're filing a complaint with the Competition Bureau, accusing the Quebec government of helping Air Canada keep discount competitors out of the province, in return for the provincial government agreeing not to use competing carriers for the length of the three-year agreement.

Jetsgo media release