Monday, December 2, 2013

Canadian Jetlines to focus on Northwest industrial developments for market share

Last week, word began to work it's way to the Northwest of a potential new airline making plans to offer service to under-served regions of Northern British Columbia and as we outlined on the blog last Thursday, one of the proposed destinations for Canadian Jetlines is Prince Rupert.

Since those early dispatches of information, a bit more of the business plans has been disclosed and the proposed new airline would seem to be banking a good portion of what it believes will be demand on the many industrial projects currently in the proposal or development phase.

The Vancouver Province outlines where Canada Jetlines believes it's business success may rest, with one area that may soon be a key component of plan being the transit of workers destined for the variety of LNG and other industrial projects that currently mark the Northwest's economic blue prints.

In fact, that theme of the economic change that the Northwest would seem to be on the cusp of, is one of the reasons that WestJet has started its service to the Terrace-Kitimat airport.

That service was launched one week ago today, and from the province story we get a fairly good picture of the excitement that WestJet has for the region.

With WestJet spokesman Robert Palmer referring to Terrace-Kitimat as a community that could soon be British Columbia's version of Fort McMurray, but one that is much more diversified.

CanadaJetlines clearly would seem to be of the same opinion, looking to serve the needs of the industrial development ahead and providing a competitive alternative, to the current aviation services that are offered in the region.

The CanadaJetlines proposal is not the first time that the idea of a low cost airline has been floated across Canada.

In recent years both Greyhound Air and Canada3000 were among a number of budget conscious projects, airlines that either never quite made it to the departure gate, or once there, didn't have a lengthy stay.

Canada's biggest airline failures
Greyhound abandons low-cost air service
Canada 3000 suspends flights

However, by focusing on what would be a growing demand for transportation requirements that  increased development will bring to the region, the financial plan may be one that finds success with the investors that have been provided with the CanadaJetlines prospectus.

Timing as they say is key and it could be that their business plans and the growing confidence that the Northwest will be the next economic hot zone may make for a pretty good partnership.

A combination that could make for opportunity for Prince Rupert's Digby Island Airport.

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