Jetsgo set to take off on expansion; Plans involve 'significant' steps Stronger Pearson presence predicted
30 March 2004
The Toronto Star
MONTREAL -- Flush with a $25 million financing from a U.S. investor, fast-growing Jetsgo is scheduled to announce more expansion plans for the airline's network today.
The Montreal-based discount airline has not yet released details, but said they involve "its most significant competitive initiative since its launch in June, 2002."
President and founder Michel Leblanc said yesterday the initiative is related to the previously announced purchase of 18 new aircraft, deliveries of which start this month, and to a cash infusion by an unnamed investor announced last week.
"It's basically about two major product improvements," Leblanc said in an interview, declining to provide more details.
Jetsgo has defied skeptical pundits with a steady rate of growth, and is currently taking delivery of the first of 18 Fokker F-100s the company has ordered, which will more than double the Jetsgo fleet to 32. Jetsgo already has 14 MD-83s with 160 seats each, while the F-100s seat 100 passengers.
Analyst Jacques Kavafian said the announcement, at a news conference in Toronto that will include former Senator Frank Mahovlich, a former National Hockey League star, will probably be about an expansion of Jetsgo's presence at Toronto's Pearson International Airport. That would come on the heels of Calgary-based WestJet Airlines Airlines Ltd. moving its eastern hub there from Hamilton.
Jetsgo is not closely followed by analysts because it is a private company that does not issue financial statements.
"We don't have much information to go with," said Kavafian, with Octagon Capital. "He's been in business for two years now, and he keeps growing, so it's obviously viable."
He said Jetsgo is gaining share from Air Canada, which has been struggling under bankruptcy protection and has been unable to fight back successfully.
AI
