Canada Jetlines – “We’re Going To Start A Rebellion Against High Air Fares In Canada”

TSXV: JET

This was the core theme as Stan Gadek, CEO of Canada Jetlines, spoke to members of the press and media this morning (September 11) on the heels of the announcement that the new airline will offer ultra-low fare service from both John C. Munro Hamilton International Airport and Region of Waterloo International Airport when it begins flight operations in Summer 2018.

Mr. Gadek said the target date to be in the air is June 1st, 2018, starting with two Boeing 737-800NG aircraft, then adding two more by August, and another two aircraft by November. Below are the route maps that will expand in conjunction with the addition of aircraft.

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He spoke at length about cost control to ensure that “we will always have the lowest airfare” and that the company’s modeling is looking for a Cost Per Seat Mile of 9.5 cents, which is lower than any of the Ultra-Low Cost Carriers in the United States and considerably under Westjet’s 12.5 cents.

To view the news conference and follow-up questions, see below or click here.

Mr. Gadek was asked about Westjet’s plans to launch a low cost airline in the summer of 2018, which he addressed in detail and also cited the example of how American Airlines tried to go head to head with Jet Blue when it launched its initial operations in the United States. His answer starts at the 21 minute mark.

Further to the entire issue of cost control, the new arrangements with Hamilton and Waterloo airports are important components of the business case and certainly so in comparison to basing operations at Toronto’s Pearson International airport. Of note is the fact that there is a “catch basin” of four million people within a 90 minute drive from John C. Munro Hamilton International Airport and Region of Waterloo International Airport.

A promotional video that Hamilton produced covers all of its advantages, with these points reflecting Canada Jetlines’ decision to base operations from there as well as Waterloo Regional.

Following the news conference and a round of interviews, Mr. Gadek was off to BNN TV where he sat down with Michael Hainsworth and told him that Canada Jetlines’ airfares would be as “low as the cost of a pair of jeans”.  

To view BNN interview, please click here