They recently offered airfares for $1

[notyoueither]

is anyone surprised by what happened next?

http://www.cbc.ca/story/canada/national/2005/03/10/Jetsgo-050310.html

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?

[Tuberski]

It doesn't mention $1 airfares in the article.

ACK!

[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...

[Giancarlo]

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.

[notyoueither]

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.

[Spiffor]

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.

[notyoueither]

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.

[notyoueither]

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.

[Spiffor]

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?

[notyoueither]

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.

[Spiffor]

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]"

[notyoueither]

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.

[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.

[Flubber]

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.

[Ming]

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.