Discount air carrier announces new flights.

• Author: GOULIQUER, DIANNE
• Position: Canada 3000 flights from Thunder Bay to Toronto - Brief Article

Business travellers in Thunder Bay were dealt some good news this spring when discount air carrier Canada 3000 announced it would add one daily return flight to Toronto at ticket prices substantially lower than Air Canada's.

On May 1, as a result of its acquisition of Royal Airlines and CanJet, Canada 3000 began its scheduled passenger service to Thunder Bay.

Thunder Bay was previously serviced by Royal Airlines. CanJet offered daily flights to Toronto for about three weeks in April, but the company retreated just 12 days before the Canada 3000 May 1 buyout.

Scott McFadden, Thunder Bay International Airport Authority president and chief executive officer, says it is still too early to gauge the impact the new carrier has had on the airport in terms of traffic levels, but he says it is sate to say that Canada 3000 will boost revenue for the airport.

"Obviously, there's a direct benefit for the airport when ever you increase the number of airplanes flying through here; we see an incremental increase in revenue because of that," McFadden says. "I think we tend to look at these things with a much longer view and certainly what has happened in the last year or two is fundamental to the strength of the Thunder Bay and Northern Ontario economy."

Thanks to the introduction of discount airlines like West Jet two years ago, and now Canada 3000, McFadden says average airfares have dropped substantially.

"We've certainly seen the mean airfare decreasing over the last two years, which is the first time that we know of," he says. "Our records go back to 1994 and we've seen about a 14 per cent increase per year on average (to airfares), and of course that gets compounded.

"Last year we had significant decreases in airfares, and I think Canada 3000 is offering about $220 return on their flight to Toronto."

He says Canada 3000's ticket prices are comparable with WestJet, which offers non-stop flights to Hamilton, Ottawa, Winnipeg and Calgary.

"Of course you can also connect to Canada 3000's net work. Their schedule actually works out quite well because you leave (Thunder Bay) in times to make connections with Canada 3000's network in Toronto. Similarly, on your return trip you arrive back in Toronto on time to make the 8:30 p.m. flight back to Thunder Bay.

"In many cases you will eliminate the need to stay overnight in Toronto and/or you can go to Toronto for a meeting and...