Tango takes to Halifax, St. John's

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Tango takes to Halifax, St. John's
Last Updated Mon Jan 7 17:01:27 2002

ST. JOHN'S - Tango, Air Canada's low-cost carrier, has added two new
eastern departure points. Although some were enthusiastic about the new
service, others were critical.  Tango offers a no-frills approach with no
first-class and passengers have to pay for food and drinks.  The airline
now flies from Halifax to Montreal, Ottawa and St. John's, Newfoundland.
With the demise of Canada 3000 last November, travellers in the Atlantic
clamored for cheap seats on Tango.  "It was only $109 one-way to St.
John's, it's a bargain," said Halifax traveller Eva Toth.  "I thought it
was fine, I was expecting bottom of the line service, and it was
comfortable. The staff was friendly," said fellow passenger Frank LeBlanc.

Passengers say they were also surprised at the quick check-in and lack of
lineups. But the praise wasn't overwhelming.
Some in the travel industry say they're concerned Tango doesn't really
offer a choice for consumers. The federal competition bureau is watching
the discount carrier closely. The bureau says the only way to have real
competition is for another carrier to step in.  Ches Chard of the Travel
Agents Association in Newfoundland agrees. He says Tango doesn't count as
competition because it's run by Air Canada.  "They control the low end and
the high end," says Chard. "As long as they keep the spread, they can
continue to raise prices. We would like to see a non-Air Canada competitor
come in here as well."  WestJet's CEO, Clive Beddoe, has promised new
routes in 2002, but they're not expected to be implemented until the end of
the year.  Beddoe has also predicted that Tango is destined for
failure.  "The concept of an airline within an airline has failed numerous
times," said Beddoe in previous interviews "This is not going to turn Air
Canada around."

Meanwhile, Michel Leblanc, the former head of Royal Aviation who sold his
company to the now-defunct Canada 3000, said he wants to launch a new
discount carrier in the Atlantic.  Leblanc has yet to release details of
his plan but says he's been talking to other financial partners.  Right
now, Atlantic travellers have little choice.  "Considering some of the
problems I've had with Air Canada in the past, I'm pretty apprehensive to
find out what the bare bones Air Canada service is like," says traveller
Dave Thompson.

Written by CBC News Online staff



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