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SpaceshipDC10
Topic Author
Posts: 6914
Joined: Tue Jan 01, 2013 11:44 am

What if Swoop is grounded following WestJet's acquisition?

Mon May 13, 2019 1:45 pm

Since it was announced not long ago that WestJet is being acquired by Onex, if the latter decide to ground Swoop, what's the future for the secondary airports served by it in the short to medium term?
 
YYZLGA
Posts: 439
Joined: Fri Dec 09, 2016 4:28 am

Re: What if Swoop is grounded following WestJet's acquisition?

Mon May 13, 2019 3:23 pm

I think it's very premature to say they're grounding Swoop, but I do think that the future of the secondary airports needs to be lower costs. There shouldn't be a $20+ AIF from an airport like YHM. The reason the Ryanair model worked is that they flew from repurposed hangars or terminals that look like a warehouse and that cost next to nothing to operate from.
 
SpaceshipDC10
Topic Author
Posts: 6914
Joined: Tue Jan 01, 2013 11:44 am

Re: What if Swoop is grounded following WestJet's acquisition?

Mon May 13, 2019 4:39 pm

YYZLGA wrote:
I think it's very premature to say they're grounding Swoop, but I do think that the future of the secondary airports needs to be lower costs.


I know it's too early to say, but I believe most of us didn't saw the acquisition coming. And, if Swoop is indeed shut down by Onex, Rouge will be the last large player in the market, at least as long as Enerjet launch.
 
yeginleduc
Posts: 76
Joined: Tue Mar 06, 2007 12:12 pm

Re: What if Swoop is grounded following WestJet's acquisition?

Mon May 13, 2019 5:41 pm

YEG is at $30 CAD for AIF and doesn't help airfares in Canada. For Ryanair and Spirit style fares that would double the fare on something like YEG-YXX. YXX from what i can tell is $5 of which makes sense. Would any new carrier in Canada try something like YXX-YQF to take advantage of people traveling from Alberta to the lower mainland? Ryanair has made it work in Europe...
 
ddp
Posts: 38
Joined: Sun Aug 13, 2017 6:57 pm

Re: What if Swoop is grounded following WestJet's acquisition?

Mon May 13, 2019 5:47 pm

Canada really doesn't have a lot of small airports that can be used. Montreal potentially has one, Toronto has one via Hamilton and Vancouver via Abbotsford. Outside of that we are a country or large airports full service, high cost airports.

Hamilton really should find a way to cut its AIF, especially since Toronto Pearason gives very generous deals to Air Canada and West Jet for landing deals.
 
Dominion301
Posts: 2691
Joined: Wed Jul 20, 2016 1:48 pm

Re: What if Swoop is grounded following WestJet's acquisition?

Mon May 13, 2019 5:56 pm

yeginleduc wrote:
YEG is at $30 CAD for AIF and doesn't help airfares in Canada. For Ryanair and Spirit style fares that would double the fare on something like YEG-YXX. YXX from what i can tell is $5 of which makes sense. Would any new carrier in Canada try something like YXX-YQF to take advantage of people traveling from Alberta to the lower mainland? Ryanair has made it work in Europe...


YXX is actually one of two airports in Canada without an AIF. YQT is the other. From those places, other than GST/HST that you'll pay anywhere, all you're paying is the CATSA tax.

I can't see ONEX getting rid of Swoop. If anything, they'll probably want to negotiate with the pilots and FAs to expand Swoop to lower WS' cost base even further. I could also see Swoop starting to 'interline' with mainline.

ddp wrote:
Canada really doesn't have a lot of small airports that can be used. Montreal potentially has one, Toronto has one via Hamilton and Vancouver via Abbotsford. Outside of that we are a country or large airports full service, high cost airports.

Hamilton really should find a way to cut its AIF, especially since Toronto Pearason gives very generous deals to Air Canada and West Jet for landing deals.


There's nothing stopping the large airports from building spartan 2-6 gate ULCC terminals like some major European airports have done. None have demonstrated a willingness to do so...yet!
 
SpaceshipDC10
Topic Author
Posts: 6914
Joined: Tue Jan 01, 2013 11:44 am

Re: What if Swoop is grounded following WestJet's acquisition?

Mon May 13, 2019 6:28 pm

ddp wrote:
Canada really doesn't have a lot of small airports that can be used. Montreal potentially has one, Toronto has one via Hamilton and Vancouver via Abbotsford. Outside of that we are a country or large airports full service, high cost airports.

Hamilton really should find a way to cut its AIF, especially since Toronto Pearason gives very generous deals to Air Canada and West Jet for landing deals.


You can add London, Kelowna, probably Red Deer too.

yeginleduc wrote:
Would any new carrier in Canada try something like YXX-YQF to take advantage of people traveling from Alberta to the lower mainland?



Enerjet is one of the companies that is looking at Red Deer for scheduled passenger service.

“Enerjet fully intends to be providing scheduled passenger service to many points across Canada, easily within the next 12 months,” said Darcy Morgan, one of the company’s founders.


https://www.reddeeradvocate.com/news/pa ... t-success/
 
multimark
Posts: 466
Joined: Sat Jul 29, 2006 1:53 pm

Re: What if Swoop is grounded following WestJet's acquisition?

Mon May 13, 2019 6:30 pm

We should all doa Happy Dance?

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