Thursday, July 12, 2018
Porter Airlines Inc. is about to launch a brand new basic fare category as competition heats up between airlines eager to welcome price-sensitive travellers.
The private airline declared on Wednesday that it would offer a basic fare on certain routes that features a lower price, while charging for additional service options, including checked luggage and advance seat selection that is similar to the strategy at ultra-low-cost carriers.
Michael Deluce, Porter’s chief commercial officer mentioned in an interview that this would go a long way in making sure that they can remain competitive in the future with any new products in the marketplace, whether it is from Air Canada and WestJet or new ultra-low-cost carriers that come into the market.
The decision to introduce a lower-cost fare comes as other major carriers, including Air Canada and Westjet Airlines Ltd., are offering unbundled fare options that target price-sensitive travellers. It also comes just a few weeks after the launch of WestJet’s new ULCC Swoop, which began flying in June.
However, Deluce also went on to add that the new fares are not a response to the recent launch of Swoop.
They are not a direct competitor to us, but over time, they might be, he feels.
Until recently, Canada was the last G7 nation without an ultra-low-cost carrier, which keeps fares as low as possible while charging for extras such as assigned seats and carry-on luggage.
While Porter is not an ultra-low-cost carrier, running a distinct model that offers more services for fliers, its new basic fares will work similar to ultra-low-cost carriers’ fares.
The fare will be the lowest price.
However it restricts passengers’ ability to make itinerary changes, cancellations or receive refunds or credits. Basic fare passengers will also only be allowed to bring one personal item, such as a small purse or briefcase, as a carry-on. Passengers will still get Porter’s complimentary services, which includes beer, wine and snacks on board.
The airline is currently offering cheaper ticket price on routes to and from Sault Ste. Marie, Sudbury, Timmins and Windsor.
Tags: Air Canada, Michael Deluce, Porter Airlines, WestJet
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