Monday, July 18, 2005

 

Air Canuk takes a pass on the red sand

Air Canada is cancelling its Toronto-Charlottetown fall and winter flights because it's livid about the PEI government's subsidies for rival WestJet Airlines Ltd.

Air Canada will be placing advertisements in local newspapers in Prince Edward Island this week to notify travellers about the airline's withdrawal, beginning in October, of flights between Toronto and Charlottetown.

It seems like Premier Pat Binns' gamble to use public money to subsidize West Jet has failed. The Binns' government had lured WestJet to launch service in the province by providing about $500,000 in marketing and revenue incentives.

WestJet made its PEI debut on June 28, when it launched its Toronto-Charlottetown summer-only route, offering daily non-stop flights to and from the island. The seasonal service is scheduled to end Sept. 15.

There are couple of things wrong with this story. One - if - as Air Canada points out, they use profits from the summer to bolster weaker winter months to maintain the route year-round, why subsidize another to run and cut after 4 months?

Two, this is going to throw a huge wrench into the plans of many international travellers. The Star Alliance network, of which Air Canada is a partner, services almost the entire globe, but certainly Asia, the United States and Europe and this is where the majority of PEI tourists are coming from. As a result of Binns' brain freeze, these passengers will have to enjoy being shuttled around Toronto's Pearson Airport and hop scotching airlines. This is neither fun nor recommended.

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