The threat of war in Iraq is casting a shadow over Alberta skies, forcing fledgling Canada West Airlines to delay its intended spring launch and spurring many travellers to review their trip itineraries.
With oil prices surging skyward and the American stock market rattled by the looming war, Canada West has been forced to push back plans to begin intercontinental flights from Alberta and B.C., chairman and CEO Gordon Andrews said last week.
“We don’t want to put our investors in a position that they are going to have to have a loss,” Andrews said.
“You can imagine how difficult it is to raise investment in a climate like this.”
It’s not the first setback for the airline, which operates from Vancouver but will ultimately be based in Edmonton. The company had planned to take to the skies last year, but decided to wait until the global economy improved in the wake of the September 2001 terrorist attacks in the U.S. The airline had rescheduled its launch for this spring or summer, but Andrews says it will likely be September.
The impending U.S.-led war and a labour strike in Venezuela have pushed up oil and jet fuel prices. Air Canada and Calgary-based subsidiary Zip Air recently announced they are boosting ticket prices on longer domestic routes by $20 to help pay the mounting costs.
Canada West will be aimed at intercontinental travellers, primarily to Europe. Andrews said the carrier has no plans to join the fiercely competitive domestic market, which has seen Alberta-based no-frills carriers such as WestJet and Zip locked in an escalating dogfight. Earlier this month, Montreal-based discount operator JetsGo entered the fray, announcing it will begin serving the Calgary and Edmonton markets this spring.
Despite all the new options, some travellers are wary about making long-term plans with war possible as soon as next week. “Our family was hoping to get away for spring break or Easter, but now we’re either going to hold off until summer or go in the next week or two,” said Liz Wong, who was checking her options at a downtown travel agency last week.
Winter-weary Jeremy Knox was visiting his travel agent last Friday to plan a quick getaway to Mexico or the Caribbean. Like many other travellers, he was looking for a last-minute deal to escape the bitter cold.
“I’m not planning to go too far away, but I feel comfortable going for a week to a low-key destination like Cuba,” said Knox. “Obviously, you choose your destination based on how calm and safe you hope it’s going to be.”
Louise Crandall, a spokeswoman for the Association of Canadian Travel Agencies (ACTA), said many travellers are still booking spring-break trips. However, “longer-term, we are seeing a softening . . . in bookings,” she said.
Crandall noted many tour operators, hotels and even airlines have adjusted their cancellation policies to encourage travellers to take holidays despite the war threat.
