Michael LeBlanc is back with JetsGo

Spider-man · 05-17-2002, 05:07 PM

The former owner of Royal Aviation is now coming back with a new airline called JetsGo. This will be the Canadian carrier to operate MD-83s.

The Gazette (Montreal)
(D1 / Break; Business - Wed 10 Apr 2002)Nicolas Van Praet

Airline industry veteran Michel Leblanc has dramatically trimmed his
plans for a new discount carrier, sources say, but is planning to get
it airborne to ride the peak summer season.

Leblanc, the former head of Royal Aviation Inc., will start up a low-
cost airline based at Dorval airport with three used Boeing MD-83 jets,
a source familiar with the plan said.

The entrepreneur had initially sought investment cash for a fleet of
eight to 10 jets.

Leblanc's company has already started to hire flight attendants, the
source said. Jacques Cimetier, a former Transat A.T. executive who now
runs upstart Vacances Air Columbus, confirmed Leblanc also has poached
some administrative staff he was going to hire.

Though Leblanc had indicated he would like to use the name Royal,
insiders say that probably will not be the name of the airline. The new
carrier would fly domestic routes on a regular schedule, battling head-
to-head with Air Canada and its no-frills Tango brand.

The 55-year-old former pilot has closely guarded the details of his new
venture as he works with a handful of trusted associates, including
Maurice Dahan, former vice-president (maintenance and engineering) for
Royal.

Reached at his home, Leblanc would not confirm the information, saying
he will make an announcement in May.

"We're not ready to go public with this right now. At this point, it
could only hurt us."

Leblanc has repeatedly pushed back the launch date since November, when
he first said he wanted to start a discount airline.

Industry watchers speculate that he just can't find the cash.

But Leblanc insists money is not an issue and notes that he started
Royal in 1991, smack in the middle of the Gulf war and a recession. He
said he is running into no specific problems.

Launching with three jets would take Leblanc back to those modest
beginnings. He started Royal with one charter aircraft.

He built that up to 16 planes and employed 1,400 before selling the
airline to now-defunct Canada 3000 for $84 million last year.

The model for his current project is Calgary-based discounter WestJet
Airlines Ltd. That airline began with three Boeing 737-200s.

Analysts say Leblanc has to launch by summer to take advantage of the
peak summer season, usually the year's busiest time.

But the fact he has chosen the MD-83 could pose a problem. While the
twin-engine aircraft is said to be a good choice because of its fuel
efficiency and 170-seat capacity, there are none flying in Canada right
now. That means the federal government would have to certify the
aircraft, a potentially lengthy process.

Douglas Reid, a business professor at Queen's University, sees another
snag. Leblanc has little to offer travelers when something goes wrong
with one of his three jets, Reid said.

"The problem with three planes is that you then become a niche operator
and not terribly attractive. Your cost structure isn't great. You leave
yourself vulnerable."

"If his strategy is to enter routes where Air Canada is the only player
today, there's nothing wrong with that. And he might do fine. But
you'll never really get big enough to persuade anybody that you can
become dependable."

Bill G · 05-17-2002, 05:51 PM

Unusual name. This is a good article and I enjoyed reading it. I raised an eyebrow when reading that no Candian carrier had operated the MD-80 family of aircraft.
Best of luck to them.

Bill G

Chansen · 05-29-2002, 01:50 PM

An MD-80 carrier in Canada!

05-17-2002, 05:07 PM	#1
Spider-man Insane Collector Join Date: May 2002 Location: Mississauga, Ontario, Canada, North America, Earth, Milky Way, Universe Posts: 1,636	Michael LeBlanc is back with JetsGo The former owner of Royal Aviation is now coming back with a new airline called JetsGo. This will be the Canadian carrier to operate MD-83s. The Gazette (Montreal) (D1 / Break; Business - Wed 10 Apr 2002)Nicolas Van Praet Airline industry veteran Michel Leblanc has dramatically trimmed his plans for a new discount carrier, sources say, but is planning to get it airborne to ride the peak summer season. Leblanc, the former head of Royal Aviation Inc., will start up a low- cost airline based at Dorval airport with three used Boeing MD-83 jets, a source familiar with the plan said. The entrepreneur had initially sought investment cash for a fleet of eight to 10 jets. Leblanc's company has already started to hire flight attendants, the source said. Jacques Cimetier, a former Transat A.T. executive who now runs upstart Vacances Air Columbus, confirmed Leblanc also has poached some administrative staff he was going to hire. Though Leblanc had indicated he would like to use the name Royal, insiders say that probably will not be the name of the airline. The new carrier would fly domestic routes on a regular schedule, battling head- to-head with Air Canada and its no-frills Tango brand. The 55-year-old former pilot has closely guarded the details of his new venture as he works with a handful of trusted associates, including Maurice Dahan, former vice-president (maintenance and engineering) for Royal. Reached at his home, Leblanc would not confirm the information, saying he will make an announcement in May. "We're not ready to go public with this right now. At this point, it could only hurt us." Leblanc has repeatedly pushed back the launch date since November, when he first said he wanted to start a discount airline. Industry watchers speculate that he just can't find the cash. But Leblanc insists money is not an issue and notes that he started Royal in 1991, smack in the middle of the Gulf war and a recession. He said he is running into no specific problems. Launching with three jets would take Leblanc back to those modest beginnings. He started Royal with one charter aircraft. He built that up to 16 planes and employed 1,400 before selling the airline to now-defunct Canada 3000 for $84 million last year. The model for his current project is Calgary-based discounter WestJet Airlines Ltd. That airline began with three Boeing 737-200s. Analysts say Leblanc has to launch by summer to take advantage of the peak summer season, usually the year's busiest time. But the fact he has chosen the MD-83 could pose a problem. While the twin-engine aircraft is said to be a good choice because of its fuel efficiency and 170-seat capacity, there are none flying in Canada right now. That means the federal government would have to certify the aircraft, a potentially lengthy process. Douglas Reid, a business professor at Queen's University, sees another snag. Leblanc has little to offer travelers when something goes wrong with one of his three jets, Reid said. "The problem with three planes is that you then become a niche operator and not terribly attractive. Your cost structure isn't great. You leave yourself vulnerable." "If his strategy is to enter routes where Air Canada is the only player today, there's nothing wrong with that. And he might do fine. But you'll never really get big enough to persuade anybody that you can become dependable." __________________ Your Friendly Neighborhood Spider-man

05-17-2002, 05:51 PM	#2
Bill G Insane Collector Join Date: Aug 2000 Location: St. Charles, MO Posts: 1,248	JetsGo Unusual name. This is a good article and I enjoyed reading it. I raised an eyebrow when reading that no Candian carrier had operated the MD-80 family of aircraft. Best of luck to them. Bill G __________________ *Ozark Flies Your Way* FEES DON'T FLY AT SOUTHWEST

05-29-2002, 01:50 PM	#3
Chansen Complete Wacko! Join Date: Oct 2000 Location: Parker, CO Posts: 3,041	Interesting reading this! An MD-80 carrier in Canada!

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