A consulting expert says WestJet’s announcement of a new direct daily service from Nanaimo Airport to Calgary will have positive implications for Island flyers and may also spur increased competition from Air Canada, which offers its Jazz flight service from Nanaimo.
The Calgary-based airline delivered the news at a special event at Nanaimo’s airport on Monday, making Nanaimo and Fort St. John the first two Canadian cities to receive the company’s regional Encore service. Starting June 24, a 78-seat Bombardier Q400 NextGen aircraft will leave Calgary at 11 a.m. and arrive in Nanaimo at 11:43 a.m. There will be a return flight to Calgary from Nanaimo at 12:30 p.m.
Robert Kokonis, managing director of airline and travel consulting firm AirTrav Inc., said Air Canada already lowered its prices in anticipation of WestJet’s announcement.
He pointed to a report his firm prepared that showed Air Canada, which offers eight daily flights from Nanaimo to Calgary International Airport with a stopover in Vancouver, has cut fares on the route by 16 and 18 per cent since July. The airline also cut prices for its daily direct flights from Vancouver to Fort St. John by even larger margins.
However, Kokonis said WestJet’s daily direct service gives the company an advantage over Air Canada in the Nanaimo/Calgary market, a factor that might spur the latter to take further action.
“I think we’re going to see Air Canada make some scheduling changes,” he said. He said its possible the airline could crunch the numbers and decide to introduce its own direct flight service to an Alberta destination. Alternatively, the airline could pull out of the market entirely.
Kokanis said WestJet will also be keeping a close eye on passenger numbers once the route comes into service. “I’d be hard-pressed to believe it won’t do well in Nanaimo.”
Air Canada spokeswoman Angela Mah said the airline will remain a force in the hub city.
