Sunwing Flies East...

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Sunwing flies east


BRENT JANG
Globe and Mail Update
Sunwing Airlines, the upstart in domestic skies, is poised to shake up the competition in Atlantic Canada. The new carrier is part of a travel company, owned by Toronto's Hunter family, that specializes in winter vacation packages to sun destinations but is expanding into scheduled summer flights within Canada.

While Sunwing has only two 189-seat Boeing NG 737-800 aircraft, it's adding a third plane in June and that could spell potential trouble for closely held CanJet Airlines, controlled by Halifax businessman Ken Rowe.
WestJet Airlines Ltd., Air Canada and Jazz Air Income Fund are expected to weather the storm from the new entrant, says National Bank Financial Inc. analyst David Newman.

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“While Sunwing could erode some marginal network traffic from WestJet, WestJet should only compete with Sunwing on three non-stop routes — Toronto-Halifax, Toronto-St. John's and Toronto-Charlottetown,” Mr. Newman said in a research note.

With Halifax-based CanJet recently adding a 10th plane to its fleet, it will be interesting to see how the stepped-up competition plays out, he said. “The Atlantic market could become particularly competitive.”

CanJet already faces contract talks with newly unionized pilots and flight attendants, so the emergence of Sunwing adds to the pressure, Mr. Newman said.

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Airports land Sunwing
Firm to offer low-priced fares to Halifax, Sydney travellers

By TOM PETERS Business Reporter


Summertime air travellers out of Halifax and Sydney will be wooed by a new domestic service starting in June.

Ontario-based Sunwing Airlines will offer non-stop flights from Halifax to Toronto, London, Ont., and Vancouver and from Sydney to Toronto. The flights are part of the company’s new coast-to-coast domestic program focusing on urban markets in Ontario, British Columbia and Atlantic Canada.

"Both the business and leisure traveller will benefit from this new direct service to London, providing the community with another non-stop destination and an additional option to the Toronto and Vancouver markets," Jerry Staples, vice-president of marketing for the Halifax International Airport Authority, said in a release.

"Sunwing is already running a successful program servicing southern destinations from Halifax and we are pleased to support this new initiative."

Sunwing’s Halifax flights will serve Toronto on Tuesdays and Fridays from June 23-Sept. 15. One-way fares are $100. Halifax to London will be Mondays and Thursdays from June 22-Sept. 14. One-way prices are $149. Halifax to Vancouver will be Mondays and Thursdays from June 22-Sept. 14 with one-way fares $350.

Larry MacPherson, CEO of the Sydney Airport Authority, said it is pleased with the new service, adding the flights will be reasonably priced and give travellers a choice between Sunwing and Air Canada.

"There will be options for people and there is a bit of competition so we may see a change in some pricing as well."

Sunwing’s Sydney-Toronto schedule will be Mondays and Thursdays with an average one-way fare of $200.

Stephen Hunter, CEO of Sunwing Vacations, said the new service will fill a void in the industry.

"The federal government has indicated they want airlines that provide low-cost, convenient transportation for consumers," he said in a release. "Currently our industry does not offer a lot of options for travellers and we are happy to be providing an alternative."

Sunwing Airlines was launched last November to service southern destinations for the company’s travel arm Sunwing Vacations. It has operated flights to the Dominican Republic from Halifax.

The announcement of Sunwing’s domestic program coincides with its acquisition of a third aircraft, a new Boeing 737-800 scheduled for delivery in June. It will be the first plane in Sunwing’s fleet to be equipped with "winglets," vertical wing tip extensions that reduce drag and reduce fuel consumption. For more information, visit www.flysunwing.com.
( tpeters@herald.ca)

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Sunwing joins fray over Maritime travellers: Void left by Jetsgo

National Post (Tue 04 Apr 2006 - Page: FP4 - Section: Financial Post) Byline: Chris Sorensen

Atlantic Canada is shaping up to be a key battleground for the country's airlines this summer as Halifax-based CanJet Airlines looks to fend off mounting competition from Air Canada, WestJet and, for the first time, charter operator Sunwing Airlines.

While not a major player, Sunwing recently said it will fly domestic flights between Toronto and a handful of Maritime cities this summer when the holiday tour business to such places as Mexico and the Caribbean is slower. The airline will also fly to Vancouver.

The move sparked speculation among some observers that Sunwing may be eyeing the void created by the collapse of discount airline Jetsgo last year -- a rumour that Stephen Hunter, chief operating officer of Sunwing Vacations, is quick to dispel.

"We're still focused 100% on leisure travellers," he said. "We do not want to be a competitor to WestJet or Air Canada. Nor are we going the route of Canada 3000, Royal or other has-beens."

The reference to Canada 3000 and Royal Airlines is deliberate. Mr. Hunter's father, Colin, was one of the co-founders of Canada 3000, which also started as a charter airline before merging with Royal and CanJet, entering the scheduled airline business and, ultimately, collapsing in the wake of the 9/11 terrorist attacks.

But despite his promise not to repeat history, Mr. Hunter makes no apologies for Sunwing's rapid growth. The airline was created last year after Sunwing decided it needed more control over the jets that flew its vacation package customers to holiday hot-spots. The company had previously relied on the former Jetsgo for about 25% of the flights, and was forced to reimburse hundreds of passengers when the discount airline collapsed in March, 2005.

Mr. Hunter said Sunwing will take delivery of its third Boeing 737 in June and plans to add another two jets to its fleet by the end of the year. The airline hopes to distinguish itself from other carriers by flying from "secondary urban centres" such as London and Sarnia, Ont., and by offering guests some of the perks -- including complimentary in-flight meals and free snacks -- that other airlines have discarded.

David Newman, an analyst at National Bank Financial, said Sunwing's decision to focus flying in Atlantic Canada this summer is not likely to have much of an impact on

Air Canada or WestJet, but could be bad news for privately held CanJet, a division of businessman Ken Rowe's IMP Group Ltd.

"We know [CanJet's] aircraft are not as fuel-efficient," Mr. Newman said in an interview. "And with the price of oil at $67 a barrel, it's going to be difficult for them to make money with the air fares that are currently out there."

At the same time, CanJet is also facing the prospect of increased labour costs after its pilots and flight attendants recently agreed to join labour unions.

Air Canada

is planning to increase its capacity in Atlantic Canada by 9% this summer and WestJet, which will receive 12 new planes this year, has identified Eastern Canada as a growth market, Mr. Newman said in a research note to clients. "We believe CanJet may be vulnerable to an all-out aviation assault this summer."

CanJet, not surprisingly, says it is up to the challenge.
"We've been used to competing since Day One," said Wayne Morrison, a CanJet spokesman. "And we don't intend to let anyone intrude too far into our market."

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Sunwing joins fray over Maritime travellers: Void left by Jetsgo

National Post (Tue 04 Apr 2006 - Page: FP4 - Section: Financial Post) Byline: Chris Sorensen

Atlantic Canada is shaping up to be a key battleground for the country's airlines this summer as Halifax-based CanJet Airlines looks to fend off mounting competition from

Air Canada, WestJet and, for the first time, charter operator Sunwing Airlines.

While not a major player, Sunwing recently said it will fly domestic flights between Toronto and a handful of Maritime cities this summer when the holiday tour business to such places as Mexico and the Caribbean is slower. The airline will also fly to Vancouver.

The move sparked speculation among some observers that Sunwing may be eyeing the void created by the collapse of discount airline Jetsgo last year -- a rumour that Stephen Hunter, chief operating officer of Sunwing Vacations, is quick to dispel.

"We're still focused 100% on leisure travellers," he said. "We do not want to be a competitor to

WestJet or Air Canada. Nor are we going the route of Canada 3000, Royal or other has-beens."

The reference to Canada 3000 and Royal Airlines is deliberate. Mr. Hunter's father, Colin, was one of the co-founders of Canada 3000, which also started as a charter airline before merging with Royal and CanJet, entering the scheduled airline business and, ultimately, collapsing in the wake of the 9/11 terrorist attacks.

But despite his promise not to repeat history, Mr. Hunter makes no apologies for Sunwing's rapid growth. The airline was created last year after Sunwing decided it needed more control over the jets that flew its vacation package customers to holiday hot-spots. The company had previously relied on the former Jetsgo for about 25% of the flights, and was forced to reimburse hundreds of passengers when the discount airline collapsed in March, 2005.

Mr. Hunter said Sunwing will take delivery of its third Boeing 737 in June and plans to add another two jets to its fleet by the end of the year. The airline hopes to distinguish itself from other carriers by flying from "secondary urban centres" such as London and Sarnia, Ont., and by offering guests some of the perks -- including complimentary in-flight meals and free snacks -- that other airlines have discarded.

David Newman, an analyst at National Bank Financial, said Sunwing's decision to focus flying in Atlantic Canada this summer is not likely to have much of an impact on

Air Canada or WestJet, but could be bad news for privately held CanJet, a division of businessman Ken Rowe's IMP Group Ltd.

"We know [CanJet's] aircraft are not as fuel-efficient," Mr. Newman said in an interview. "And with the price of oil at $67 a barrel, it's going to be difficult for them to make money with the air fares that are currently out there."

At the same time, CanJet is also facing the prospect of increased labour costs after its pilots and flight attendants recently agreed to join labour unions.

Air Canada

is planning to increase its capacity in Atlantic Canada by 9% this summer and WestJet, which will receive 12 new planes this year, has identified Eastern Canada as a growth market, Mr. Newman said in a research note to clients. "We believe CanJet may be vulnerable to an all-out aviation assault this summer."

CanJet, not surprisingly, says it is up to the challenge.
"We've been used to competing since Day One," said Wayne Morrison, a CanJet spokesman. "And we don't intend to let anyone intrude too far into our market."