Canada 3000, the Toronto-based charter airline, has lost the business of major customer Signature Vacations, which will switch to rival Royal Aviation this year.
Signature, the Toronto-based subsidiary of UK tour operator First Choice (Air 2000's parent), has been a major customer for Canada 3000 since the carrier was launched in 1988, with the airline having 70% of Signature's business.
The switch to Royal was prompted by Signature's purchase of the airline's tour operator division Royal Vacations, which is being merged into its own operation. Meanwhile, Canada 3000 has just launched its own tour operator division "C3 Leisure". Signature says that this factor, combined with the significant price difference between the proposals submitted by the two airlines, also prompted the switch, which takes effect in November.
Royal will now take four Boeing 757s on lease from Air 2000 later this year. The aircraft had been destined for Canada 3000.
Brad Rawson, Canada 3000's vice-president for sales and marketing, says: "Signature did represent a lot of business for us, but we are well subscribed for next year."
The airline has recently taken delivery of the first of two Airbus A330-200s, which will be operated on long haul services to Europe, and across the Pacific.
Source: Flight International
