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Roots Air makes sky high debut on Monday
Date: Sun. Mar. 25 2001 9:48 PM ET
Airline travellers have one more option when Roots Air takes to the skies Monday. But whether the added competitor helps push prices down for good will also be up in the air.
It will take some time to determine just how competitive prices will become with the flurry of upstart airlines, say analysts.
Along with Roots, there is WestJet, CanJet and the merging Canada 3000-Royal Airlines. All are vying to challenge to the dominating Air Canada, which swallowed up its main competitor, Canadian Airlines, last year.
They really haven't got a foothold yet,
Randy Williams, president of the Ottawa-based Association of Canadian Travel Agents told Canadian Press. With an 80 per cent market dominance that Air Canada has -- or 90 per cent of the revenue -- it's going to take a long time to move that market share significantly.
Roots Air, however, is vying for business travellers. It aims to make its airline distinct. You're going to experience better food, a much more thought out design,
says Roots spokesman Michael Budman.
It will also be a large marketing effort to move Roots brand clothing and other products. For example, all Roots Air staff -- including the pilots -- will be decked out in Roots-designed clothing.
In an aggressive launch, it is also paying travel agents four times the usual commission to push the fledgling airline.
NICHE MARKETS IN THE AIR
Add to the fold Virgin Air from Britain, which is poised to enter the market to compete against Air Canada's overseas routes, and count one more option for consumers.
And for now, prices are dropping as each airline woos travellers in attempt to carve out niche markets.
I think you will see a lot of great prices -- it's the time to travel across the country,
says Marion Joppe, a travel industry analyst.
Yet Michael Janigan, executive director of the Ottawa-based public Interest Advocacy Centre, wonders about the long-term survival of smaller carriers.
Their success, he says, will hinge on the vigilance of the Competition Bureau to ensure the dominant airline doesn't resort to anti-competitive behaviour.
He's referring to Air Canada dropping its price to match or undercut small carrier prices.
Already, Roots Air, WestJet and CanJet have accused it of doing just that after Air Canada lowered its fares on flights headed west.
Roots is charging $909 for a middle class seat from Toronto to Calgary. Air Canada dropped its price -- from nearly $2,000 -- to offer the same deal for the same route.
It's price cutting move is being challenged before the Competition Bureau.
Yet for consumers, its a sign that there may be some viable choices to make travelling more enjoyable and affordable.
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I think he was pushed to take matters into his own hands. I have a teenage son and if he was involved with a drug dealer I would be furious and try anything to save him like this father did for his daughter. Why do police often say they can't do anything until it's too late? Whether it be a drug dealer or an abusive spouse, the police can't seem to do anything until something really bad happens. In this case they could have raided the drug dealers home and arrested him. The whole town knew what was going on in that house but yet the police chose to do nothing. Release this man and give him a medal for doing the right thing by his daughter. I can't wait to see the episode on W5, I will certainly be watching this one.
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