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kamloops
Topic Author
Posts: 138
Joined: Thu Nov 18, 2010 6:43 pm

NewLeaf Travel Co Temporarily Cease Flight To (YKA, YYJ, YXE & YQR)

Fri Sep 16, 2016 4:55 pm

No surprise here New Leaf Temporarily Ceases flights to Kamloops, Victoria, Regina & Saskatoon.


Looks like the start to the end of another failed airline in Canada.


URL: http://business.financialpost.com/news/ ... our-cities
 
Dominion301
Posts: 2836
Joined: Wed Jul 20, 2016 1:48 pm

Re: NewLeaf Travel Co Temporarily Cease Flight To (YKA, YYJ, YXE & YQR)

Fri Sep 16, 2016 5:24 pm

kamloops wrote:
No surprise here New Leaf Temporarily Ceases flights to Kamloops, Victoria, Regina & Saskatoon.


Looks like the start to the end of another failed airline in Canada.


URL: http://business.financialpost.com/news/ ... our-cities


Disaster YES! Failed airline: NO! They're essentially a tour operator, minus the hotels/car rentals.

Their business plan is a disaster. Point-to-point with no connecting traffic. The predictions of going belly-up not long after the Labour Day rush are looking increasingly true.
 
FWAERJ
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Joined: Wed Jun 07, 2006 1:23 am

Re: NewLeaf Travel Co Temporarily Cease Flight To (YKA, YYJ, YXE & YQR)

Fri Sep 16, 2016 5:51 pm

NewLeaf was what we in the US call a public charter, where just like NewLeaf, a third party airline operates air service for a tour operator that charters a plane and then sells seats to the public.

The business model of public charters didn't work in the US, as evidenced by the failure of Direct Air, the non-startup of JetAmerica, and airports like GYY that relied on public charters for service. And I guess public charters didn't work in Canada either.
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robsaw
Posts: 443
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Re: NewLeaf Travel Co Temporarily Cease Flight To (YKA, YYJ, YXE & YQR)

Fri Sep 16, 2016 7:19 pm

FWAERJ wrote:
NewLeaf was what we in the US call a public charter, where just like NewLeaf, a third party airline operates air service for a tour operator that charters a plane and then sells seats to the public.

The business model of public charters didn't work in the US, as evidenced by the failure of Direct Air, the non-startup of JetAmerica, and airports like GYY that relied on public charters for service. And I guess public charters didn't work in Canada either.


That's about it in a nutshell. As others have mentioned, their business model of flying point-to-point between "underserved" markets in Canada without connections was mindnumbingly optimistic. Looking into the Fall with intra-Canada tourist traffic dropping their bookings must be tanking.
 
Dominion301
Posts: 2836
Joined: Wed Jul 20, 2016 1:48 pm

Re: NewLeaf Travel Co Temporarily Cease Flight To (YKA, YYJ, YXE & YQR)

Sat Sep 17, 2016 7:57 pm

In the last New Leaf thread I illustrated how the tour operator could have hubbed in YWG and mini-hubbed in YHM with only 3 aircraft and could have served 15 destinations daily in summer and 5x/week in winter with Florida flying the other 2 days. This would be a vastly larger revenue stream with marginally higher staffing levels/variable costs.
 
flyguy89
Posts: 3042
Joined: Tue Feb 24, 2009 6:43 pm

Re: NewLeaf Travel Co Temporarily Cease Flight To (YKA, YYJ, YXE & YQR)

Sat Sep 17, 2016 11:47 pm

FWAERJ wrote:
NewLeaf was what we in the US call a public charter, where just like NewLeaf, a third party airline operates air service for a tour operator that charters a plane and then sells seats to the public.

The business model of public charters didn't work in the US, as evidenced by the failure of Direct Air, the non-startup of JetAmerica, and airports like GYY that relied on public charters for service. And I guess public charters didn't work in Canada either.

The graveyard is even larger than that. Don't forget about PeoplExpress, and the on-going disaster of Branson AirExpress.
 
ACDC8
Posts: 7878
Joined: Thu Mar 10, 2005 6:56 pm

Re: NewLeaf Travel Co Temporarily Cease Flight To (YKA, YYJ, YXE & YQR)

Mon Sep 19, 2016 7:39 pm

Mixed messages coming from management themselves - one day they are saying that its due to lack of aircraft available, the next day they are saying that its lack of passenger demand ...

http://www.castanet.net/news/Kamloops/1 ... s-4-cities
http://globalnews.ca/news/2945851/newle ... saskatoon/
A Grumpy German Is A Sauerkraut
 
ridgid727
Posts: 1081
Joined: Thu Jul 24, 2008 1:58 am

Re: NewLeaf Travel Co Temporarily Cease Flight To (YKA, YYJ, YXE & YQR)

Mon Sep 19, 2016 11:10 pm

FWAERJ wrote:
NewLeaf was what we in the US call a public charter, where just like NewLeaf, a third party airline operates air service for a tour operator that charters a plane and then sells seats to the public.

The business model of public charters didn't work in the US, as evidenced by the failure of Direct Air, the non-startup of JetAmerica, and airports like GYY that relied on public charters for service. And I guess public charters didn't work in Canada either.


That is not entirely true, as Morris Air was originally Morris Air Charter. Sierra Pacific operated 737's, Ryan International operated 737's, at certain times Braniff II operated 727's, Total Air operated L1011's, and Hawaiian Air operated charters for them as well. All flights by Morris Air were public charters until they got their own certificate. They were not a failure, but were purchased by SouthWest Airlines at a time when their founder discovered she had breast cancer.
 
jimbo737
Posts: 530
Joined: Mon Jan 18, 2016 12:18 am

Re: NewLeaf Travel Co Temporarily Cease Flight To (YKA, YYJ, YXE & YQR)

Tue Sep 20, 2016 1:29 am

And November is such a busy time for travel in Canada....no one has any excess capacity.

Jumping in and out of markets doesn't endear an airline to its market.

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