12/02/12, 14:26:12 EST

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Plans in works for new airline

edmontonsun.com

Four former WestJet bosses are drawing up plans to launch a Calgary-based carrier to fly travellers in smaller cities to larger centres.

NewAir & Tours believes it will carve a niche by pursuing routes either neglected or underserved by WestJet and Air Canada.

"We're not a major airline - we're not flying against what's out today and we're not going to fly against Air Canada or WestJet," said Tim Morgan, who was one of the original co-founders of WestJet.

"It will be more of a charter company than a scheduled airline," he said.

While the carrier's 55-page proposal is modelled after Allegiant Travel Co. - a Las Vegas-based firm that runs a vacation division and low-cost airline - Morgan said NewAir's blueprint will be modified to reflect the needs of Canadian travellers.

"We're going to provide a convenient, cost-effective option, which today's travellers don't have yet," he said.

Morgan, former WestJet executive vice-president of operations, is spearheading the plan with William Lamberton, former vice-president of marketing.

They are being supported by Gareth Davies, former vice-president of technical services and Alan Mann, a former WestJet accounting executive.

But aviation consultant Rick Erickson said the plan, expected to take off within the next 12 months, may be difficult in an environment where two major incumbents are already very successful.

"Canada is littered with carriers that flamed out over the last 20 years or so," he said.

"And most startups fail because they are undercapitalized."

He said Lamberton's marketing expertise in smaller, secondary markets means the carrier will probably be serving towns such as Lethbridge, Red Deer and Fort McMurray.

"My guess is that they will start out very slow, with two or three airplanes," he said.

"I cannot imagine that they will start out with a big bang."

Calgary-based WestJet, launched in 1996 with only three planes serving five cities, has grown to a fleet of 68 Boeing 737s in a network of more than 40 destinations.

"(NewAir) is probably one of the better assembled teams since WestJet in terms of their very broad aviation experience," said Erickson.

 Printable Version  | published Oct 23, 2007