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Flair Airlines is offering flights for one loonie. Experts say it has to be serious

Flair Airlines is offering flights for one loonie. Experts say it has to be serious

Would you buy a plane ticket for a loonie? Flair Airlines hopes so.

The ultra-low-cost carrier says it has introduced a base fare of one dollar for passengers flying back to Canada from sunny destinations, but some experts are skeptical about whether the airline can maintain the special offer.

Flair says the one-dollar fares currently reserved for northbound flights from Mexico, the United States, Jamaica and the Dominican Republic will now be offered permanently on its website.

The airline is offering one-dollar return flights to Canada from Cancun and Puerto Vallarta airports, Orlando and Las Vegas. The offer is valid for flights from the south to Calgary, Edmonton, Montreal, Saint John, Vancouver, Toronto and Kitchener-Waterloo, Ontario, and London, Ontario.

Eric Tanner, Flair’s vice president of revenue management and network planning, said the deal was a way to “give back to our customers.”

“We are approaching the start of our winter season, in which we will offer fewer domestic flights and significantly more international flights.”

He said those southbound flights are full, but the planes are “pretty empty” when they return to Canada – so the deal is an incentive for passengers to fly north again. When the spring season begins, the deal will apply to southbound flights.

“These flights basically have no opportunity cost. They fly full south and empty north,” he said. “And even if we put four people on that flight who otherwise wouldn’t have taken it, that’s great. We’re happy about that.”

Flair isn’t the first airline to try the $1 offer—Porter Airlines offered a similar promotion on domestic flights in January 2023. And WestJet announced an UltraBasic fare with no carry-on baggage, seat selection, or reward points in June.

Although the offer is only valid for selected flights, the airline plans to offer additional routes throughout the year. In a press release, the company stressed that the offer is not a one-off promotion.

A person works on a computer at an airport counter.
An employee works at a Flair Airlines counter at Richardson International Airport in Winnipeg on February 1, 2023. (Gary Solilak/CBC)

“It’s a gimmick”

Others disagree.

“It’s a gimmick,” says Ian Lee, associate professor of management at Carleton University’s Sprott School of Business.

“It’s basically a loss-leader offer. You see it in grocery stores and retail,” he said. “They do it to generate sales, drive business to the website and get people interested in flying with that airline.”

“They won’t be able to sustain this for very long because the operating costs per customer are significant,” Lee added, saying the airline would need to fill almost every seat with customers at all times for the move to be sustainable.

“It requires a relationship with the consumer. Air Canada has it, WestJet has it, Porter has it, these smaller low-cost airlines are trying to win the loyalty of their customers … and that’s an uphill battle in this industry.”

Flair, one of the last ultra-low-cost airlines still operating in Canada, has significant debt. Court documents from earlier this year showed it owed the Canada Revenue Agency $67 million in import duties.

Four of its aircraft were seized in March 2023 after the company allegedly fell behind on paying millions of dollars in rent to a leasing manager.

The airline said on Wednesday it was seeking investors to inject cash into the company as it restructures its finances to reduce its debt and seeks to expand its fleet of 20 aircraft.

WATCH HERE | Last year, four aircraft were seized from Flair:

Flair Airlines flights cancelled after 4 planes seized in ‘trade dispute’

Some Canadians were stranded after four Flair Airlines planes were suddenly seized amid a dispute with the company that leased them. The airline was behind on a payment but says the move was “totally unjustified.”

“The bill could be quite expensive”

Some travelers at Toronto’s Pearson International Airport responded positively to the Flair offer, while others said “thanks, but no thanks.”

“Going to as many destinations as possible for little money? That’s fine with me. I will definitely take up the offer,” says Max Kirsch.

“Nothing is free. But considering the flight only costs a dollar, how much can they really raise your baggage fees?”

Others were less enthusiastic.

“I myself would be very suspicious of a fare of one dollar,” said John Kangur. His wife Ella-Mai said the deal was too good to be true.

“Many of these low-cost flights have baggage fees, check-in fees, this and that fee. There are time restrictions on travel, when and where. So we take the airlines we feel comfortable with,” she said.

Flair acknowledged that the base fare is only a portion of the total ticket price. Baggage and seat selection fees will still apply regardless of the promotion, as will other airport fees charged on every trip.

“You have to buy tickets, you have to buy luggage, carry-on luggage, checked luggage. You have to pay money for your seat, you have to pay money for all kinds of other amenities,” said John Gradek, an aviation expert at McGill University.

WATCH | Why airline fees are rising while airfares are falling:

Rising fees while airfares fall

Airfares in Canada may have dropped, but that doesn’t mean travelers are paying less. Fees for everything from baggage to cancellations have skyrocketed, and customers are being urged to watch out for hidden costs.

Additional and optional fees are listed on Flair’s website.

The airline charges between $29 and $89 plus taxes for carry-on luggage. The fee depends on whether you add the bag online, at the airport or at the gate. A checked bag weighing 10 kilograms costs between $29 and $59 plus taxes.

A checked bag weighing 23 kilograms costs between $49 and $79 plus taxes. This price increases for bags checked at the airport (and for each additional checked bag weighing 23 kilograms).

Selecting a standard seat on a Flair flight costs between $15 and $25 plus tax. Seats at the front of the plane, extra legroom seats and emergency exit row seats incur additional fees.

Additionally, most airports in Canada charge an “airport improvement fee” that increases the final price of your trip. For example, the fee at Toronto Pearson is $35 for departing passengers and $7 for connecting passengers.

“The bill could get pretty expensive,” Gradek said, “so be careful what you’re buying overall if you choose that $1 plan.”

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