RE:I have a questionNew Leaf started as a ticket broker company that had a relationship with Flair Air to charter aircraft that they sold tickets for at a so called "Ultra Low Cost" Price point, however it was more like a Low Cost price point...yes there seats might have been competative but their extra add ons were WAY over inflated.
New Leaf now is fully owned by Flair Air and has decided the Ultra Low Cost Model doesn't work for them since they fly older aircraft that are not fuel efficient and they have a unionized staffing model that does not allow them to be successful in the ULCC sector. Therefore, they have decided to offer a Low Cost model kinda like the model West Jet once offered. This is fine but New Leaf is going to have to make a drastic change to its infrastructure to keep up...Once Jetlines launches in June 2018 it will have the lowest per seat mile cost average in North America and will be basically untouchable by any airlines when it comes to its bottom line...this is accomplished by its overall business model starting from the salary for its CEO right down to its office supplies.
West Jet with its SWOOP offering is an airline within an airline model that in the past has never succeded...infact most of them fail within the first 2 years. You can't expect a pilot that is unionized to fly a discount airlines and expect to be paid a lower rate then his counterpart which is a legacy airlines (West Jet) that charges premium pricing for their service. West Jet needs to please its shareholders and show them they are making an attempt to fight back...but really it is a futile attempt that they know will result in them folding in 2-3 years.
Canada Jetlines will be the 3rd carrier in Canada and has had the support of the federal governement and provinicial governments and is the only true ULCC model from the gound up.