ViveLeYHZ
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Jetsgo Will Vanish By April Of This Year?

Sun Jan 30, 2005 4:25 am

The Globe and Mail has an article today about the possible demise of Jetsgo. An airline analyst, Ben Cherniavsky, predicts the privately-held airline will fold sometime this year, calling Jetsgo "the weakest link" in the Canadian airline sector.

A report released by Mr. Cherniavsky also cites Westjet as the main beneficiary of Jetsgo's collapse, this is why Westjet's shares (WJA) were up a whopping 12.5% on Friday. Clearly, many think Westjet has good days ahead of it. AC stocks were also up 4%.

I always thought Jetsgo was taking too much risk by flying to about 30 cities when they've only been in the market for three years. I also don't see the wisdom of faithfully following the hub model, when they fly YHZ-YYZ-YUL and expect to compete with AC.

The article is available on this link: Article

Is Jetsgo really in trouble ? Are people in Jetsgo (or Westjet) talking about this ?
 
captaingomes
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RE: Jetsgo Will Vanish By April Of This Year?

Sun Jan 30, 2005 4:31 am

There seem to be rumours around about Jetsgo's demise. Look for a "for sale" sign before that happens.  Big grin Michel Leblanc, for all his faults, knows how to make money in the airline biz.
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
 
lnglive1011yyz
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RE: Jetsgo Will Vanish By April Of This Year?

Sun Jan 30, 2005 10:59 am

It's funny how you hear rumors of lax customer service, lax maintenance, and other factors that come into play, with regards to this airline.

Whether or not their true, they ARE a major reason why I haven't chosen to fly with them anywhere.

Can anyone please explain how an airline can make money on 20.05$ flight from YYZ to say, YVR?

I can't for the life of me figure it out.

1011yyz.

Pack your bags, we're going on a sympathy trip!
 
slawko
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RE: Jetsgo Will Vanish By April Of This Year?

Sun Jan 30, 2005 11:16 am

It's called Yeild and Revenue management and is a basic principle of aviaiton. You will never get $20.05 fares in both directions and you cant book a $20.05 fare one way only. Furthermore it is designed so that the available return fares on those flights is generally well over "full fare" .
"Clive Beddoe says he favours competition, but his actions do not support that idea." Robert Milton - CEO Air Canada
 
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yyz717
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RE: Jetsgo Will Vanish By April Of This Year?

Sun Jan 30, 2005 11:43 am

Slawko is right. Ryanair has similar lead-in fares all the time.

I wouldn't be surprised if Jetsgo has high margins overall.
I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
lnglive1011yyz
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RE: Jetsgo Will Vanish By April Of This Year?

Sun Jan 30, 2005 11:46 am

Thanks guys  Smile

I don't want to see ANY airline fail, so I hope that the rumors and reports are wrong, and they continue to be successful.

1011yyz

Pack your bags, we're going on a sympathy trip!
 
ckfred
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RE: Jetsgo Will Vanish By April Of This Year?

Sun Jan 30, 2005 11:49 am

What does this do to the AA sales of its F100s? I'm assuming that AA has been paid for every plane that has been delivered to date.
 
yhz78
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RE: Jetsgo Will Vanish By April Of This Year?

Sun Jan 30, 2005 8:02 pm

Take away the Jetsgo label and the happy face and replace them with a wreath and Royal and it would be just like going back in time 5 years. People have got to learn that Leblanc just can't, or won't, run a proper airline.
Canada Rocks! From the west coast to the best coast!
 
connector4you
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RE: Jetsgo Will Vanish By April Of This Year?

Mon Jan 31, 2005 12:59 am

In his report, Mr. Cherniavsky speculated that if Jetsgo vanished from the domestic market on April 1 . . .

Speculating and fabricating news . . . that's exactly what stock brokers (industry analyst ?) are doing for a living in order to spur transactions on flat stocks and reap a juicy commission in the process.





 
a380
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RE: Jetsgo Will Vanish By April Of This Year?

Mon Jan 31, 2005 12:34 pm

Wonder if Westjet had a part in this 'analysis', I like Westjet but it's now known for its share of dirty tricks too.
 
AWspicious
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RE: Jetsgo Will Vanish By April Of This Year?

Mon Jan 31, 2005 1:06 pm

What a load of crap. The media is a tool often used by those with hidden agendas in an attempt to fulfill their unscrupulous desires by trying to manipulate the unsuspecting public with unfounded information. This is just another example (of several in as many weeks) of such a practice. My opinion is, unless ML stands to gain a handsome financial reward from this, it ain't happenin.
Nevermind political correctness - Envision using your turn signals!
 
CanadaEH
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RE: Jetsgo Will Vanish By April Of This Year?

Mon Jan 31, 2005 3:49 pm

I read the analyst report (titled 2005 Canadian Airline Outlook) by Raymond James and there certainly wasn't anything nice said about Jetsgo. I have to say though, that after reading the report it certainly makes me realize that Jetsgo is "the weakest link", as the report as so dubbed the airline.
EH.
 
captaingomes
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RE: Jetsgo Will Vanish By April Of This Year?

Tue Feb 01, 2005 3:32 am

Sure, Jetsgo can be seen as the weakest link, but that's because we don't know as much about them as the other airlines, and as such, people often wonder how they manage those seat sales all the time. Reality check folks ... it gets them noticed, and gets the idea ingrained in people's heads that Jetsgo is the CHEAPEST way to get from A to B in Canada, whether that's true or not. It's a marketing scheme, and despite whatever issues anybody may have with Jetsgo, they have been able to sustain incredible growth since their inception.

I truly believe ML is running a marginal operation at Jetsgo, but that's just his way of cutting costs, and it is his choice to run the airline as such. It does not mean there is any lack of resources at his disposal, so like I have said before, you should worry about the viability of Jetsgo once the "For Sale" sign shows up at the front door.
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
 
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yyz717
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RE: Jetsgo Will Vanish By April Of This Year?

Tue Feb 01, 2005 7:31 am

Jetsgo received a cash infusion from a US merchant bank in 2004 which enabled them to procure the F100's. Im sure that bank reviewed the financials and found them satisfactory.

I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
FCKC
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RE: Jetsgo Will Vanish By April Of This Year?

Tue Feb 01, 2005 7:39 am

Do you think if Jetsgo would have begunn to fly with a more efficient plane (737NG/A320) than these MD80s , they would have been more successful?
 
AussieItaliano
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RE: Jetsgo Will Vanish By April Of This Year?

Tue Feb 01, 2005 7:48 am

Does anyone think that a WS purchase of Jetsgo would be too far fetched? Just a thought...
Third Runway - LHR, Second Runway - LGW, Build Them Both!!!
 
ilikeyyc
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RE: Jetsgo Will Vanish By April Of This Year?

Tue Feb 01, 2005 8:03 am

From my armchair, I see no reason why WestJet would even consider buying Jetsgo. They have no common assets and it would be a waste of money to buy other types of aircraft (MD80 and F100).

They are never on time and have had their share of operational problems.

Also, they had an incident at Calgary last week where the aircraft damaged an airport sign on a go-around.

http://www.airliners.net/discussions/general_aviation/read.main/1929997
Fighting Absurdity with Absurdity!
 
captaingomes
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RE: Jetsgo Will Vanish By April Of This Year?

Tue Feb 01, 2005 8:05 am

FCKC, starting out with a more efficient aircraft would help operationally, but would cost a heck of a lot more money to initiate. Jetsgo would either start off much smaller with more expensive, albeit more efficient jets, or they would need a huge amount of investment capital. It is not in Leblanc's nature to operate expensive aircraft.

AussieItaliano, the purchase of Jetsgo is inevitable at some point, if history is any indication. When that may be is anybody's guess. I've heard a rumour of Westjet wanting to purchase Jetsgo, but I believe it is hogwash. It would be an interesting idea though, and might cost Westjet less money to purchase Jetsgo and shut them down, rather than compete against them. Still, that's hogwash.  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
 
ac7e7
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RE: Jetsgo Will Vanish By April Of This Year?

Tue Feb 01, 2005 8:08 am

JetsGo will not be purchased by WestJet.
They may not have the best aircraft, be late all the time, have to send customer luggage with an AC flight because of weight restrictions -- but people will continue to fly them because they offer VERY low prices. IMO, business travellers have no use for them, but for people that are in no hurry, JetsGo can be considered when choosing an airline.

-AC7E7
 
kaputt
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RE: Jetsgo Will Vanish By April Of This Year?

Tue Feb 01, 2005 8:41 am

I thought that they had been doing well with loads into the 80%'s?
Carpe the Diem...Seize The Carp
 
kanebear
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RE: Jetsgo Will Vanish By April Of This Year?

Tue Feb 01, 2005 8:52 am

One more time... loads have ZERO to do with yields. You can have a very high yielding flight with 3 pax (CX and some of their late night flights), and you can have an absolutely packed to the gills flight that loses money (any US major pretty much anywhere as of late)
 
voodoo
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RE: Jetsgo Will Vanish By April Of This Year?

Tue Feb 01, 2005 9:03 am

If I were ML, I'd buy Westjet stock (low at reg. intervals) and make a profit everytime someone (essentially) libels Jetsgo...then reinvest the profits back into Jetsgo.  Smile

Although not exactly comparable (especially because of MLs privat eownership) I see Jetsgo as the `Ryanair' of Canada and Westjet as the `Easyjet'.
The former(s) seems to get more complaints and `bad' publicity.... but essentially bank and somehow expand on that knowing that people will always perceive them as the cheapest.
` Yeaah! Baade 152! Trabi of the Sky! '

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