In a strategic move, Flair is channelling the spirit of Southwest Airlines, focusing on low fares that could result in savings of $300 million for Canadian travellers. This figure is speculative and has not been confirmed by Open Jaw. However, the total savings could be even higher as it does not factor in potential downward fare adjustments by competitors such as Air Canada and WestJet.
In contrast with Southwest is Flair's consumer-focused business model. While Southwest incorporates the trade, Flair aims to connect directly with its customers. Some revenue management executives in the airline industry argue that while the GDS approach involves higher costs, the volume of business it generates leads to increased overall revenues.
Does the end user win or lose?
This shift in strategy raises questions about the implications for end users. Due to its higher operating costs, the Canadian market has not been particularly friendly to ULCCs. Furthermore, the higher landing fees north of the border could offset the benefits of such an approach.
In the 1990s, Southwest was synonymous with its popular tagline, "You are now free to move about the country," reflecting its commitment to providing affordable air travel.
Flemming Friisdahl, President and Founder at The Travel Agent Next Door, expressed his perspective. "I have no problem with suppliers going direct as long as all parties sell at the same price and commission is paid so that agents can be compensated for their hard work," he said. Friisdahl also emphasized the need for unity among travel advisors, saying products that offer a fair price and commission are always preferred.
As the situation unfolds, the jury remains out on whether Flair will revolutionize Canadian air travel or encounter the same hurdles that have hindered past ULCCs. Regardless, the promise of savings always attracts the attention of cost-conscious travellers.
