Flair Airlines is launching $1 northbound flights to Canada this winter. The budget airline says this is a permanent offer to fill empty seats, but some experts think it might be just a marketing trick.


August 30, 2024 Tags:

Flair Airlines is making headlines with its latest promotion: flights for just $1. The budget carrier has introduced this base fare deal for flights returning to Canada from popular sun destinations like Mexico, the U.S., Jamaica, and the Dominican Republic. The offer is available for flights from airports in Cancun, Puerto Vallarta, Orlando, and Las Vegas to several Canadian cities, including Calgary, Edmonton, Montreal, Saint John, Vancouver, Toronto, Kitchener-Waterloo, and London.
Eric Tanner, Flair's Vice-President of Revenue Management and Network Planning, explains that this promotion is designed to give back to customers. As Flair transitions into winter, it shifts from focusing on domestic flights to operating more international routes. Tanner notes that while flights to the south are often full, the return flights to Canada tend to be much emptier. By offering $1 fares, the airline hopes to fill these flights and attract more passengers.

Despite the exciting offer, some industry experts are skeptical. Ian Lee, an associate professor of management at Carleton University, describes the $1 deal as a "gimmick" and compares it to loss leaders seen in retail. Lee argues that the airline may struggle to sustain such low fares due to high operating costs per passenger. Building customer loyalty in the airline industry is challenging, and small-budget carriers often face difficulties in maintaining consistent service.

Flair, one of the few ultra-low-cost airlines left in Canada, is also dealing with significant financial issues. The company has substantial debt, including a $67 million liability to the Canada Revenue Agency. Additionally, Flair had four planes repossessed earlier this year after missing rent payments, and it is now seeking investors to help restructure its finances and expand its fleet.

The $1 fare deal has received mixed reactions from travellers. Some, like Max Kirsch, are excited about the offer and plan to take advantage of it. Others, like John Kangur and his wife Ella-Mai, are cautious and skeptical, fearing hidden fees and restrictions. They worry that while the base fare is incredibly low, additional costs for baggage, seat selection, and other services might make the overall trip expensive.

Flair acknowledges that the $1 fare is only part of the total ticket price. Additional fees apply for baggage, seat selection, and other services. For instance, carry-on bags range from $29 to $89 plus tax, while checked bags and seat selection come with their costs. Airport improvement fees further add to the final price, which means travellers should carefully review all potential charges before booking.

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