AIR Canada will pitch Vancouver as an alternative gateway to the US when it starts its first non-stop services next month.
The new daily flights will initially feature 777-300ER services before the airline switches to a 777-200LR early next year because of payload restrictions on the bigger plane.
The service features Air Canada’s new premium and economy class products with business class sleeper seats, more comfortable economy seats as well as video on-demand and power points in all classes.
Going non-stop will shave more than three hours off the flight time and also overcomes an irksome requirement that even transit passengers in Hawaii, the airline’s previous technical stopover, pass through US immigration.
The Canadian carrier expects aresponse to its new service thatwill allow it to increase services beyond the current daily frequency.
“The potential we see as great because it’s not only a dramatically improved product to Canada but with the changes at the Vancouver airport and all of the growth we’ve had in Vancouver, it’s also a good gateway to get into the rest of Canada and North America,” Air Canada president and chief executive Montie Brewer said in Sydney yesterday.
“As you come into Vancouver you can go straight through US customs and not have to go through Canadian customs. So it’s no different than connecting in any US airport except that it’s nicer and you’ve got a great product going up there.”
The airline hopes the lure of avoiding the horrors of the US airline system will attract business as well as leisure travellers.
Mr Brewer said a big difference on Air Canada was that cabin features such as on-demand video and in-seat power points would by next year be on all of the airline’s fleet, including its narrow body aircraft.
“So you really have an international product all the way through to your final destination, be it New York, be it Toronto, be it Montreal, Calgary, San Francisco,” he said. “When you compare travel within North America, we’re the only international-standard product.”
Air Canada is also of interest to Australians because its decision to spin off its frequent flyer program, Airplan, is seen as a possible template for changes to the Qantas loyalty scheme.
Mr Brewer said Airplan spin-off had allowed both companies to thrive and grow.
“From the airline’s standpoint it’s worked extremely well,” he said. “It really has allowed the frequent flyer or the loyalty company to grow.
“And as they grow the airline gets the benefit in terms of the customers they have are more likely to fly Air Canada.”
The airline has also been innovative with its pricing structures, offering all its seats at low fares and encouraging premium customers to pay more for extras such as added flexibility, access to additional miles and food.
Mr Brewer said this made its pricing transparent and gave both premium and leisure customers what they wanted. He said the move had been revolutionary in North America and had allowed a higher-cost carrier to continue to survive in a low-cost market.
“In the past we would have … taken the low fare off the market as we got closer to departure and force people to buy up,” Mr Brewer said.
“Now we have to get people to willingly buy up, and they are.
“Forty six per cent of our domestic customers up to this point in this year willingly bought a higher fare, even though a lower fare was available, because they know what the value of that higher fare is.”
The airline is also experimenting with pass and subscription products that allow customers to pay a flat fee and travel as much as they want in a month.
He said about 4 per cent of Air Canada’s North American customers were using the products, which tended to be more expensive than average fares but gave passengers the convenience of being able to change flights easily and quickly without extra charges.
Source: The Australian
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November 20, 2007 at 5:54 am