Newfoundland and Labrador Product Development Strategy

- 60 -the province was about 48% higher than it was in the fall of 2002. The increase is a result ofincreased capacity offered by Air Canada, along with service by CanJet, WestJet and Jetsgo.Not only is lift capacity increasing in St. John’s, but regional centres such as Deer Lake andGander are seeing increased direct service from domestic markets, and there is more directaccess from St. John’s to central Canada and beyond. For example, WestJet is offeringservice from Gander to Toronto (with one stop) three times a week this summer, and directnon stop service from St. John’s to Calgary four times a week (plus another four with onestop). CanJet has been flying direct from Deer Lake to Montreal, and will be offering dailyflights to Montreal through Halifax this summer. And, Jetsgo has recently announced servicefrom Stephenville to Toronto for summer 2004.Tickets on all carriers can be purchased one-way, and prices in today’s market can be veryreasonable, particularly when compared to the fares of four or five years ago. (There is still aperception in the domestic marketplace that air access to Newfoundland and Labrador isextremely expensive – while it is still not cheap, fares are available for a lot less than theyhave been in the past. For example, a round trip on WestJet from Toronto to St. John’s in midsummercan be purchased for under $500 plus taxes)On the domestic front, therefore, air access appears to faring very well, at least for 2004. Itremains to be seen, however, if loads are sufficient for these low cost carriers to continue toprovide these expanded services.On the international front, the situation is not as positive. Air Canada has traditionallyprovided seven flights weekly from Atlantic Canada (Halifax) to Heathrow, four of whichstopped in St. John’s. This was reduced to four flights a week in spring 2003, all stopping inSt. John’s; the other three flights were reinstated in the fall of that year. Air Canada’s currentschedule for the summer of 2004 indicates daily flights from Halifax to Heathrow that stop inSt. John’s suggesting increased capacity for this summer. Prices remain high, however, withthe quoted one way fare for St. John’s to Heathrow this June of $1,175. Halifax is also seeingincreased service to Gatwick, and to other UK destinations, as well as to Germany. Touroperators working in the European market, as well as businesses targeting this market (e.g.Humber Valley Resort) are constrained, both in the peak season and in the shoulder andwinter months when there is growing market interest in Newfoundland and Labrador, by airlift capacity from Europe.Access to/from the United States has been provided totally via connections through Halifax,although Continental recently announced direct service from Newark to St. John’s. Whilecapacity into Halifax from US points has increased somewhat both with Air Canada and othercarriers, e.g. CanJet which will shortly be offering service from Halifax to Chicago and NewYork, it is mostly through connecting flights out of Montreal and Toronto, making the trip toSt. John’s multi-leg, multi-connection.Intra-provincial air access is an area of particular concern, both in terms of lift capacity andprice. As of fall 2003, intra-provincial access continued to show declines with access reducedby about 23 % (700 seats weekly) compared to the fall of 2002. Access between St. John’sTHE ECONOMIC PLANNING GROUP of Canada Newfoundland & Labrador Tourism Product DevelopmentD. W. Knight Associates Strategy and Accommodation Needs Study