In the 1990s, there was a new attitude in the flying public.
There was an increasing desire to travel by air, but at an
affordable price. Traditionally, high fares were associated with
additional services, like meals and entertainment on flights,
but many travellers in the 1990s were prepared to give up these
frills for the convenience of rapid and affordable travel by
air. The economics of passenger airlines changed from high fares
that offset the cost of the extra services and the empty seats,
to low fares, few extra services, and near capacity passenger
loads on all flights.
The first airline to demonstrate the effectiveness of the no
frills service was the Calgary based WestJet, established in
1996. WestJet demonstrated the effectiveness of the no frills
concept as a highly profitable venture with great potential for
growth.
In 2002, Montreal based Jetsgo was established on the same
principles as WestJet. In response to the competition of such
upstart airlines, Air Canada launched its own discount carriers
that included AC JETZ, Zip, Tango, and Jazz. Some of these
airlines continue to operate while others, like Tango, have
shrunk to a reduced fare ticket option on regular Air Canada
flights. |