Someone sent out to the list of the result of the WestJet move into Thompson, Manitoba. Fares went from $900 (likely return) odd to $150 (probably each way) but significant none the less. As I mentioned on the list before, the Canadian public are some what soft as to the connection between increased competition and lower fares. But deep down, most folks don't want a return to a heavily regulated market, though many won't remember it for as bad as it was. Canadian Pacific was permitted by law in one period of the 60's, to only fly one AC between Vancouver and Toronto a day. Of course they bought the biggest plane they could get for the job. A complete and utter distortion of the market as the result. Most people DO remember the feisty Wardair. Canadian law permitted charter airlines, of which Wardair was one, to fly 'groups' as they wanted. Wardair would sell tickets in a over-the-counter manner (like Air Canada) and then would form "gonna fly to Manchester on Tuesday group" initiation sessions at the airport, thereby circumventing and making fun of the ridiculous laws in place. Even Canadian Pacific, Pacific Western and many other airlines stretched the limit of the ridiculous laws. Whether deliberate or not, AC's CEO Milton is playing this memory card. It should be interesting how it all works out. Matthew -----Original Message----- From: The Airline List [mailto:AIRLINE@LISTSERV.CUNY.EDU] On Behalf Of Mark Greenwood Sent: December 15, 2001 1:14 PM To: AIRLINE@LISTSERV.CUNY.EDU Subject: Re: Canadian Airline Industry One tends to lead to the other. Mark David Bradford wrote: > Lower fares or competition? I wouldn't of thought they are mutually > exclusive. > > drb > > -----Original Message----- > From: The Airline List [mailto:AIRLINE@LISTSERV.CUNY.EDU]On Behalf Of > Michael A. Burris > Sent: Saturday, 15 December 2001 20:54 > To: AIRLINE@LISTSERV.CUNY.EDU > Subject: Canadian Airline Industry > > AIRLINE: > > I feel bad for the Canadian Airline industry. Almost overnight, Air > Canada's market share grew from 65% to 80% percent, thanks to the > failure of Canada 3000. > > What do Canadians value most: lower fares or competition? What's the > point in starting a new carrier if you already have the lion's share > of the market place? > > Mike Burris > Cambridge, Massachusetts / USA > > " MONTREAL, Dec. 14 /CNW/ - A media report today suggests that Air > Canada may have abandoned its plans for its proposed western based low > cost carrier. This report is inaccurate. > While no start date had yet been announced for the new carrier, > Air Canada President and Chief Executive Officer, Robert Milton, > recommended to Air Canada's Board of Directors on Wednesday that Air > Canada postpone any formal announcement regarding the launch of the > low cost carrier until such time as further planning is completed and > the benefits to the Canadian travelling public can be more fully > communicated to consumers and communities across the country... " -- > portfolio@newswire.ca