Noise
Topic Author
Posts: 2011
Joined: Wed Dec 22, 1999 7:38 am

Jetsgo Cancels Saguenay Service

Thu Nov 21, 2002 6:27 am

MONTREAL, Nov. 20 /CNW/ - Jetsgo announced today that it will not proceed
with its Saguenay-Montreal service which was scheduled to launch November 25,
2002.
The airline cited the recent agreement between Air Canada and Government
of Quebec as the reason for its decision to cancel its proposed five times per
week service.
The Province of Quebec and Air Canada recently announced a three year
agreement covering 15 regional markets. Under the pact the Government of
Quebec annually guarantees the airline $14 million of full economy fare
purchases for use by its employees in return for discounts of 40-70% for other
travelers.
"We simply refuse to participate in any market where free market forces
aren't at work," said Michel Leblanc, Jetsgo president and general manager.
"We have filed a complaint with the Competition Bureau but there is no way of
knowing how quickly they will act on this blatantly anti-competitive behaviour
by the Province of Quebec and Air Canada. We are left with no choice but to
withdraw at this time."
All passengers holding reservations on the Montreal-Saguenay route will
receive immediate refunds.
 
Noise
Topic Author
Posts: 2011
Joined: Wed Dec 22, 1999 7:38 am

RE: Jetsgo Cancels Saguenay Service

Thu Nov 21, 2002 6:28 am

Man this is pretty sad. Only the goddam PQ can make such a stupid move! I hope these flights resume soon!
 
captaingomes
Posts: 6251
Joined: Tue Feb 13, 2001 1:33 am

RE: Jetsgo Cancels Saguenay Service

Thu Nov 21, 2002 6:54 am

Noise, this is definitely a blow for that area. Hopefully Jetsgo can find other routes from YUL to other communities in Quebec in which to offer profitable service.

One thing of note though, Jetsgo claims this is a result of the deal that the government made with Jazz in which government workers would be traveling solely on Jazz flights. I would assume that these workers would consist of only a small proportion of the demand. If that assumption is true, it only means one of two things. Either Jetsgo is really pissed at the local government and is doing this out of spite, or then the passengers I believe Jetsgo would really be targeting (leisure, low yield, regular passengers) weren't buying tickets at the rate in which Michel Leblanc was hoping.
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
 
Noise
Topic Author
Posts: 2011
Joined: Wed Dec 22, 1999 7:38 am

RE: Jetsgo Cancels Saguenay Service

Thu Nov 21, 2002 7:14 am

Last I heard, the YUL-Saguenay flight received a lot of bookings, this is why I am so surprised that this flight wasd axed. Jetsgo must be really pissed at the Gov't, and who wouldn't be. I don't blame Jetsgo but I think cancelling what looks like a successful route is going too far. I guess he is just doing this out of principal!
 
spyderz
Posts: 624
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RE: Jetsgo Cancels Saguenay Service

Thu Nov 21, 2002 7:15 am

"We simply refuse to participate in any market where free market forces
aren't at work"

This sounds like ML is withdrawing from Saguenay in support of his claim with the competition bureau. Essentially he's pissed at the PQ, and while his passenegers numbers probably weren't where he wanted, by withdrawing the service, he's feeding more fuel for the fire in his complaint. It wasn't like this was going to be a major route for JG, given its frequency of 5x weekly.
 
captaingomes
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Joined: Tue Feb 13, 2001 1:33 am

RE: Jetsgo Cancels Saguenay Service

Thu Nov 21, 2002 7:24 am

I guess nobody here knows what ML plans on doing with the aircaft now? Especially being a discount airline where aircraft should be flying as much as possible, I hope he can redeploy quickly on other routes. Otherwise, if he's doing this out of spite, then it's going to cost him big bucks.

On a side note, anybody know what the average daily aircraft utilization is at Jetsgo? I believe that Jetblue for instance flies its aircraft on average 14 hours per day. Does Jetsgo come close to that figure?
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
 
flyyul
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RE: Jetsgo Cancels Saguenay Service

Thu Nov 21, 2002 8:08 am

Leblanc will find many routes............ Montreal-Quebec for starters! and then maybe Toronto-to the rest of the world!

 
captaingomes
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RE: Jetsgo Cancels Saguenay Service

Thu Nov 21, 2002 10:19 am

Mark, are you suggesting that Jetsgo will be serving more out of Toronto with the Saguenay service cut? Do you suppose it will be a more profitable strategy for them?  Big grin
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
 
radarbeam
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RE: Jetsgo Cancels Saguenay Service

Thu Nov 21, 2002 10:30 am

The airline cited the recent agreement between Air Canada and Government of Quebec as the reason for its decision to cancel its proposed five times per week service.

Sure.

"We have filed a complaint with the Competition Bureau but there is no way of knowing how quickly they will act on this blatantly anti-competitive behaviour by the Province of Quebec and Air Canada. We are left with no choice but to withdraw at this time."

Or maybe could it be that the route was not going to fill a MD-83 5 times a week? IMHO this sounds more likely.

Like I said before, when Jetsgo will start flying to Mont Joli and Gaspe and the many other small towns that Air Nova is flying to, then ML would be free to whine as much as he wants.

Radarbeam
 
radarbeam
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RE: Jetsgo Cancels Saguenay Service

Thu Nov 21, 2002 10:43 am

Noise said Only the goddam PQ can make such a stupid move! I hope these flights resume soon!

Well I for once applaude the PQ for a good move. Thanks to them, air travel in Quebec is not only limited to Montreal and Quebec City but to many more smaller towns all around the province. Noise, stop your "Montreal Only" view of things and open your eyes to what's outside of the city limits. I don't know if this is a breaking news to you, but, yes some people do actually live outside of Montreal, unbelievable isn't it?

Radarbeam
 
Skywatcher
Posts: 447
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RE: Jetsgo Cancels Saguenay Service

Thu Nov 21, 2002 10:47 am

According to my calculations, Jetsgo now averages a utilization of about 12 hrs./day on weekdays.

I'm sure that they don't just cancel a route that's going to start in 5 days without either a secondary reason and/or an alternate plan.

In other words, they probably weren't ready anyway and they will probably announce another service soon. The PQ deal likely just aggravated the situation. I can sympathize with them being ticked off in any event.

I'm sure that government traffic represents a steady,significant part of a market like Bagotville.Probably at least a million $ per year. That works out to a minimum of about 18 pax per day (at the Jetsgo $156 round trip price) or close to 10% of the market.

Lets see if the competition bureau can get off their bureaucratic asses for once.
 
Noise
Topic Author
Posts: 2011
Joined: Wed Dec 22, 1999 7:38 am

RE: Jetsgo Cancels Saguenay Service

Thu Nov 21, 2002 11:50 am

Radarbeam, the PQ's move is anti-competive and discourages airlines such as Jetsgo and start-up Quebecair Express a chance to fly to these cities. You don't know what my views are, and I think you should open your eyes and see that what the Gov't is doing is wrong. People should have a choice, the Gov't shouldn't have to tell them which airline to fly. Air travel in Quebec will never and was never and was never going to be restricted to YUL and YQB, that is impossible for some towns need air service to survive. Remeber, AC cut a few non-profitable routes this past summer, yet none of them were in Quebec. Jazz was not threatening to pull out of these towns any time soon!

And by the way, outside YUL, you will find very little. Remeber nearly 50% of the Quebec population lives in Montreal. The only other city is Quebec. The other towns are small and rather poor. To tell you the truth I don't know why you think my views are "Montreal Only"!
 
radarbeam
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Joined: Fri Mar 01, 2002 9:00 am

RE: Jetsgo Cancels Saguenay Service

Thu Nov 21, 2002 12:14 pm

the PQ's move is anti-competive
What competition? No airlines except Jazz want to fly to the smaller towns, because it's not profitable, not even for Jazz.

discourages airlines such as Jetsgo and start-up Quebecair Express a chance to fly to these cities.
Jetsgo just pulled out of Saguenay, do you really believe they did it because of the gov deal with Jazz? Do you really think they can be profitable flying a MD-83 (Typical seating 142) five times a week to a place like Saguenay?

Quebecair Express is still on the drawing board so we should not factor that in.

Air travel in Quebec will never and was never and was never going to be restricted to YUL and YQB, that is impossible for some towns need air service to survive.
That's the point I'm trying to make.

Remember, AC cut a few non-profitable routes this past summer, yet none of them were in Quebec. Jazz was not threatening to pull out of these towns any time soon!
Good thing, because no else wants to fly those routes.

Remeber nearly 50% of the Quebec population lives in Montreal. The only other city is Quebec. The other towns are small and rather poor. To tell you the truth I don't know why you think my views are "Montreal Only"!
Sorry I should have said "Montreal and Quebec City only"



 
flyyul
Posts: 4394
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RE: Jetsgo Cancels Saguenay Service

Thu Nov 21, 2002 2:47 pm

Radarbeam,

Man unfortunately thats the truth. People push for Quebec independance, but what constitutes Quebec?? Quebec is a vast baron land, where nearly what 65% of the population lives in 5% of the land. Both metro regions have posted economic gains, and are starting to post immigration/population gains. But for the remainder of the province (excluding Gatineau/Ottawa as well), votes PQ and pro-sovreignty?? WHY?

Good question..but those who making the money making desicions, and those who have the importance dont have a say... yes, Quebec and Montreal overwhelmingly voted Liberal on both federal and provincials counts, yet we still have these PQ clowns here, PQ the ones who just claimed that Quebec's fight for independence is like WWII.. (WTF?).

When the founders of democracy asked for representation by population, we really have a sick and twisted model. But this sick and twisted model keeps the rural areas somewhat populated, and ensure that Canada is not Montreal, Toronto, Calgary and Vancouver! Again another fine catch-22.... We talk about economic progress, but which parts of the country are really advancing (Montreal, Calgary, Toronto and to a minor-scale Vancouver/Edmonton/Halifax/Ottawa)... oops, im on a rant here.. better stop before I get blasted Big grin

I strongly believe in JetsGo's plan. There are many people that dont have the oppurtuniy to fly to Montreal from Sept-Iles, Abitibi and Saguenay, instead opt for bus, train, car, jog, walk, hitch-hike, or dont even go at all... why?

Like anything else, let's say you have X amount of people travelling between two cities. How much can low-fare unrestricted service increase demand for travel between two markets? Statistics show anywhere from what 30-40%.

The same goes for why I believe in low-cost service from Montreal to YVR, YYC, YEG, etc etc... because people will fly if the price is right. ANd people in Toronto, Calgary, Vancouver, Halifax, Edmonton and Winnipeg have a greater advantage in this respect.

To go off topic, we wonder why in Calgary there are 5 million people that travel domestically per year despite the pop. of about 1 million, because no matter where you wanna go in this country, there are cheap seats... meanwhile in Montreal, we can go to Toronto and Halifax (YHZ being a smaller than 1/3 of the size of YUL-YVR and 1/2 the size of YUL-YYC)... some will argue the low-cost hub... but thats doesnt work.. non-stops are what counts. And the beauty of it all is that a non-stop link is as powerful as an economic link/gain that anybody could want...

Mark
 
captaingomes
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RE: Jetsgo Cancels Saguenay Service

Fri Nov 22, 2002 1:01 am

Mark, you're making much more sense since you came to Toronto. I think it was a good thing for you!  Smile
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
 
Noise
Topic Author
Posts: 2011
Joined: Wed Dec 22, 1999 7:38 am

RE: Jetsgo Cancels Saguenay Service

Fri Nov 22, 2002 2:11 am

Radarbeam, I am not sure if you are aware or not, but Jetsgo wanted to fly to other places in Quebec too! Abitibi, Quebec City, Sept Iles, etc. Now the PQ is stoping that, now that's anti-competitive!

Jetsgo would have done well on these routes. Want to know why? JUST LOOK AT THE PRICE! WOW!