Saint-Hubert airport, the strategic advantage of Jetlines
Jetlines is a ultralow-cost carrier (ULCC) that had long gestation since its creation in 2013. After several postponements, the launch of operations is scheduled for summer 2019 and this time seems the good because, on October 11, the company paid the $ 2.1 million needed to secure the lease of two A320s from the AerCap leasing company. It must be said that the authorization to raise the ceiling of share capital held by foreign interests to 49% has greatly contributed to the progress of its development.
By adding its presence to Saint-Hubert, Jetlines becomes the only ULCC to set up in Quebec and to cover the three largest Canadian markets in Vancouver, Toronto and Montreal. These three markets are also those that see the largest number of Canadian travelers crossing the border with the United States to take discount flights to the south. As Quebec represents nearly 23% of the Canadian population, Jetlines gives itself a competitive advantage against Swoop, the WestJet ULCC subsidiary.
The Saint-Hubert airport is located in Montérégie with a population of 1.5 million peoples, almost twice as much as the Quebec City region and three times more than the Laurentian region. In addition, its proximity to the US border makes it easier to attract customers south of Montreal who are already crossing the United States border where airfare are lower.
By being present in the urban areas of Toronto and Montreal, Jetlines will provide more options for traveling between Eastern and Western Canada. Here again, Swoop deprives itself of the important Quebec market that Jetlines can sweep. Also note that since the publication of the press release announcing the agreement with the airport of Saint-Hubert, Jetlines now has a French version of its website.
To secure the arrival of Jetlines in Saint-Hubert, the airport management will have to obtain from the Canadian government its inscription on the list of designated airports and certainly that the steps in this direction have been initiated. It will be to see if the management of Saint-Hubert will go on for a long time with the Minister of Transport and his cabinet or will they do as other stakeholders in the airline industry in Canada do; bypass the Minister of Transport.
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