Globe says Jetlines to keep base fares low
Globe says Canada Jetlines to keep base fares low
2017-07-18 07:04 ET - In the News
The Globe and Mail reports in its Tuesday edition that Canada Jetlines is promising affordable base fares, but that means travellers will pay for other services, including paying for baggage that goes into overhead bins. The Globe's Greg Keenan writes that the strategy is one adopted by ultralow-cost carriers, which is what Canada Jetlines says it will be when it starts flying next summer. Canada Jetlines has not established fares or fees yet, but "the whole premise of an ultralow-cost carrier is low costs; we've got to look for low costs in every aspect of the operation," says chief executive officer Stan Gadek. "You want a base fare from A to B? Perfect, we've got that. Do you want bags? Do you want travel insurance, do you want a soda, etc? That's going to be extra and there's nothing wrong with that," says Mr. Gadek. "Our demographic is value oriented, they want value for their dollar. There's a certain segment of our population that will cross the street to save money." They are also crossing the Canada-U.S. border to take advantage of lower fares. As many as five million Canadians cross the border annually to airports located in the U.S. to fly to other U.S. destinations on low-cost airlines.
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