11-03-2005 11:26									#1
	They recently offered airfares for $1 Increase the size of your Attachments

is anyone surprised by what happened next?

http://www.cbc.ca/story/canada/nati...sgo-050310.html

quote: Jetsgo ceases operations; travellers stranded Last Updated Fri, 11 Mar 2005 00:56:43 EST CBC News MONTREAL - Jetsgo, one of the country's upstart discount airlines, announced just after midnight Friday that it will stop all operations immediately. Passengers are advised to make alternative travel arrangements as there will be no aircraft or staff available. Travellers looking to return from a trip must also book with other airlines. "We deeply regret that this had to happen. The decision to cease operations was only taken after difficult deliberation. We are very concerned about our customers and the significant hardship that this action causes," said Michel Leblanc, President of Jetsgo, in a statement. Leblanc founded the company in June 2002 from the ashes of Canada 3000 Inc., which collapsed after the Sept. 11 terrorist attacks caused a downturn in air travel. The shutdown comes at the start of March break, one of the busiest travel times of the year. In a news release, the airline said it will be asking the Quebec Superior Court to grant it bankruptcy protection. The release blamed "difficult market conditions" for its action. FROM OCT. 15, 2004: Jetsgo launches lawsuit against Westjet The airline, based out of Montreal, flew across the country. Although its primary business was between Canadian cities, Jetsgo also provided flights to New York City, Las Vegas and destinations in Mexico and Florida. Jetsgo had recently filed a $50-million lawsuit against WestJet Airlines and two of its executives alleging that its competitor had managed to get information to "gain an unfair competitive advantage over Jetsgo and prey upon Jetsgo's business and operations by targeting both profitable and vulnerable routes, flight times and fares." The company said it would keep the public informed of its re-structuring through its website as well as on RSM Richter Inc.'s website at www.rsmrichter.com. Further information may also be obtained by calling RSM Richter: 1-800-246-1125. The company said clients who have paid for Jetsgo tickets should contact the Canadian Transportation Agency: 1-888-222-2592.

When a company does something so clearly suicidal, is it sending up a flare to warn consumers?

What burns my shorts is the idiots who are blaming 'market conditions' for their own failure. What, they thought $1 airfares were a path to success?

	11-03-2005 11:28									#2
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It doesn't mention $1 airfares in the article.

ACK!

	11-03-2005 11:30									#3
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On the up side, if you bought a 1$ ticket and got screwed, it's not that bad.

If you were a moron and bought a regular priced ticket from them then you got what you deserved...

	11-03-2005 11:34									#4
	Lose 30 kilos (of popups)

All I can say is this: You get what you paid for. The airline might as well offered paying you to get on their flights.

	11-03-2005 11:34									#5
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quote: Originally posted by Tuberski It doesn't mention $1 airfares in the article. ACK!

Y'er right. The stupidity isn't reported, just the result.

To be fair, the $1 fares were likely a last gasp attempt... to do what nobody is sure.

	11-03-2005 11:36									#6
	Got spare money?

In Europe, there are plenty of low-cost companies who offer that kind of bargain. These 1€ seats have two uses:
1. they're a promotional price that's quickly exhausted, and it has people give attention to that particular airliner in a very competitive environment. The customer will often settle for more normal (yet cheap) prices onces he sees the mega-bargain is already gone.
2. These companies make a significant amount of money by selling related products and services: expansive in-flight food, expansive shuttles between the (secundary) airport and the real city (for example, I'll go to Vienna next month, and my plane will stop at Bratislava's airport).

At least one of these low-cost European companies is doing very well (Ryanair). I don't see why the idea couldn't work on the American continent.

	11-03-2005 11:38									#7
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quote: Originally posted by KrazyHorse On the up side, if you bought a 1$ ticket and got screwed, it's not that bad. If you were a moron and bought a regular priced ticket from them then you got what you deserved...

People get sucked in by the gimmicks of dying companies all the time.

A favorite is businesses offering impossible deals, taking a bunch of deposits, and then closing the doors.

Caveat emptor. : puke:

People should be more aware about this practice from small, and not so small, businesses.

	11-03-2005 11:41									#8
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quote: Originally posted by Spiffor The customer will often settle for more normal (yet cheap) prices onces he sees the mega-bargain is already gone.

In North America, that is known as bait and switch. It is illegal in many jurisdictions.

Actually, Dell is being hit by a class action in the Mecca of class actions (California) over just that practice.

	11-03-2005 11:50									#9
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quote: Originally posted by notyoueither In North America, that is known as bait and switch. It is illegal in many jurisdictions.

You can't offer a limited amount of seats at bargain prices on a plane?

	11-03-2005 11:57									#10
	Got spare money?

It's a touchy subject. Dell is being sued for advertising something that was already gone, for all practical purposes.

You could say 'the first 50 get the deal,' but you better back it up. So, it depends on how it is promoted.

	11-03-2005 12:03									#11
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quote: Originally posted by notyoueither You could say 'the first 50 get the deal,' but you better back it up. So, it depends on how it is promoted.

The bargains are written in big letters, and everybody knows it's only a handful of seats per flight that are so low, so everybody interested rushes to get the extra-small price.

Per law, whenever the same good or service can have different prices, the ad writes something like "minimal price [size =2000]1€[/ size]"

	11-03-2005 12:09									#12
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What do you do when the company drops all the disclaimers and simply vaccums up people's money before going broke?

How many $1 payers are going to complain they didn't get their ticket or their ride? These clowns didn't put any limits as a disclaimer in their radio ads.

That's the point. People need to be warned that offers that are too good to be true often are. They often cost a lot more than $1 as well.

	11-03-2005 15:02									#13
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The $1 deal isn't all that suicidal, because the company has to maintain the scheduled flights, regardless how filled the planes are. IOW, the overhead is fixed, so they might as well get more people to try their services.

	11-03-2005 22:32									#14
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quote: Originally posted by Urban Ranger The $1 deal isn't all that suicidal, because the company has to maintain the scheduled flights, regardless how filled the planes are. IOW, the overhead is fixed, so they might as well get more people to try their services.

I don't think their fares did them in so much as shoddy service. Apparently it was the norm to have delays of several hours with all sorts of gate changes.

	11-03-2005 22:35									#15
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quote: Originally posted by Urban Ranger The $1 deal isn't all that suicidal, because the company has to maintain the scheduled flights, regardless how filled the planes are. IOW, the overhead is fixed, so they might as well get more people to try their services.

While the overhead is indeed fixed... Fuel costs aren't. It costs more than $1 of fuel to carry the extra weight of a single passenger.

	11-03-2005 22:53									#16
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And then again, if they fly with you they aren't flying with someone else.

	11-03-2005 22:54									#17
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They weren't big enough for that to be a valid motivation. Couldn't hurt the big companies enough.

	11-03-2005 23:01									#18
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Interesting. I think it was small Ryanair that pushed big BA out of the cheap short flight sector...

The North American market is probably very different to Europe though.

	11-03-2005 23:04									#19
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Westjet/Calgary
Jetsgo/Montreal

Back in HS I fooled around with Steve Smith's son.

	11-03-2005 23:10									#20
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Manslut.

	11-03-2005 23:11									#21
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Teenager.

	11-03-2005 23:13									#22
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Who are you calling a teenager, whippersnapper?

	11-03-2005 23:14									#23
	Full PM-box? Change here!

I was giving you a synonym for manslut.

	11-03-2005 23:16									#24
	Help yourself to an AD-FREE life

But you're still a manslut and yet are no longer a teenager.

	11-03-2005 23:17									#25
	Put an end to popups!

I'm monogamous, and no longer a teenager.

	11-03-2005 23:18									#26
	Increase the size of your Attachments

Once a manslut, always a manslut.

	11-03-2005 23:52									#27
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$1 gets you halfway to your destination and then stranded.

	12-03-2005 18:22									#28
	Re: They recently offered airfares for $1 Support Apolyton, buy Call to Power 2

quote: Originally posted by notyoueither is anyone surprised by what happened next? When a company does something so clearly suicidal, is it sending up a flare to warn consumers? What burns my shorts is the idiots who are blaming 'market conditions' for their own failure. What, they thought $1 airfares were a path to success?

Ryanair offers 99p flights, and is growing rapidly and profitably.

	12-03-2005 18:29									#29
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It is rather alarming if they say they are going to provide something and then renege on that promise...the price is irrelevent, the passengers should be able to get what they paid for in an issue like this...

	12-03-2005 20:39									#30
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quote: Originally posted by Spiffor 2. These companies make a significant amount of money by selling related products and services: expansive in-flight food, expansive shuttles between the (secundary) airport and the real city (for example, I'll go to Vienna next month, and my plane will stop at Bratislava's airport).

The bus between Vienna and Bratislava shouldn't cost you more than 9 euros. IIRC you can take the tram from the airport to the center for less than a euro.