Based on coverage from CBC, Global News, The Globe and Mail, and Toronto Sun.
Flair Airlines is making a strategic shift to attract more business travellers, aiming to redefine itself as a "value carrier" rather than sticking to its ultra-low-cost roots. The Edmonton-based airline is focusing on small business travellers by offering affordable fares and integrating into global distribution systems that connect travel agents and online agencies to airlines, hotels, and car rental companies.
Flair's New Strategy for Business Travellers
CEO Maciej Wilk explained that the airline is moving away from being a pure budget airline to tap into the corporate travel market. Flair plans to offer express services to passengers who pay for add-ons like carry-on luggage, granting them priority status at check-in and boarding. However, the airline won't be introducing first-class perks like lounges or free catering.
Expanding Reach in Atlantic Canada
Flair is also looking to expand its reach by offering more flights from Atlantic Canada to major hubs like Toronto and Ontario's Waterloo Region. This move aims to make cross-country trips more appealing by reducing layover times. Despite these changes, Flair remains committed to its low-cost model, maintaining strict cost controls and a pay-for-service plan.
Challenges in the U.S. Market
The airline has faced challenges as Canadians have turned away from U.S. travel, a market Flair had targeted for expansion. The number of cross-border flights is expected to drop significantly, but Flair's routes to Mexico and the Caribbean, along with vacation packages, have helped maintain its sun destination revenue.
Competing with Legacy Airlines
Flair's push for business clients comes as the line between low-cost carriers and legacy airlines blurs. Air Canada, WestJet, and Air Transat have all adopted aspects of the discount model. However, experts suggest that to attract business travellers, Flair will need to offer more than just competitive pricing and priority boarding.
Future Prospects for Flair Airlines
While Flair's on-time performance is commendable, with 74.2% of flights arriving within 15 minutes of their scheduled time, the airline still faces hurdles in attracting high-level business travellers. The absence of loyalty points and a smaller network compared to larger airlines like Air Canada may deter some business passengers. Nonetheless, Flair's rebranding as a value airline marks a natural evolution as it seeks to capture a more diverse customer base.
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