Canadian aviation is in the middle of yet more change as new airlines move to replace Canada 3000 while Air Canada seeks to defend its dominance.
As one consultant puts it, Canada has passed through a phase of consolidation and market exit and now faces a new round of re-entry. No fewer than nine start-ups plan or have launched airlines. All see an opening after the collapse of Canada 3000 last November. Before its ill-fated switch last year to scheduled service, Canada 3000 enjoyed success in charter operations.
A buyers' market for aircraft has also encouraged newcomers. Most are focusing on leisure charters, following the pattern of flying north-south in winter, but east-west in summer.
Four of the newcomers are based in Montreal: Air Columbus, Canada Air Charter, Canada World Airlines and the proposed reincarnation of Royal Aviation. In Toronto, Conquest Vacations and Regional Airline Holdings have plans and the latter hopes to fly a regional turboprop network rather than charters. Three charter operators propose to start operating in the west. They are My Airways and Canada West in Vancouver and STARS Aviation Canada in Calgary.
Conquest Vacations has a head start on its potential rivals. The tour operator is using Skyservice Airlines to fly its charters and scheduled service. Skyservice is an experienced Canadian operator, which briefly launched RootsAir in spring 2001.
Skyservice has assumed the leases on four Canada 3000 jets and hired more than 400 pilots and flight attendants from that airline. Canada 3000 had flown Conquest passengers.
One start-up notable by its absence is the reincarnation of Canada 3000. Under the direction of Angus Kinnear, former president of Canada 3000, it appeared to have the backing to succeed. But Kinnear has called off the relaunch, blaming Air Canada's aggressive expansion of its low-fare Tango brand for scaring off investors.
Air Canada is bent on defending its 80% domestic market share. By summer Tango will serve 23 Canadian cities and operate 686 weekly flights. Air Canada is also boosting capacity. Exploiting the glutted jet market, the airline has inked power-by-the-hour leases for four Boeing 767-300s and may add more.
For the first time in years the carrier is restoring some amenities on full-service flights in a bid to woo back business travellers and discourage further defections to its low-fare rival, WestJet.
Source: Airline Business
