Yellowknife (Mar 24/06) - Starting July 3, Air Canada Jazz will offer flights to Edmonton from Yellowknife for less than $500 return.

The discount airline will go into direct competition with Canadian North and First Air and will include daily service to Calgary starting July 4. Northwestern Air Lease also offers flights to Alberta, but only to High Level and Grande Prairie.

Air fares compared Lowest available return airfare from Yellowknife to Edmonton according to each airline’s online reservation system: Canadian North: $879.91 First Air: $879.90 Air Canada Jazz: $490.43 (as of July 3, 2006) Jazz Schedule Edmonton: Departs Yk at 3 p.m., arriving at 4:40 p.m. Departs Edmonton at 8:20 p.m., arriving Yk 10:05 p.m. Calgary: Departs Yk at 9:05 a.m., arrives 11:10 a.m. Departs Calgary 12:15 p.m., arrives 2:25 p.m.

Air Canada’s move north was announced Wednesday, part of an expansion of service throughout the west.

The announcement has some frequent flyers excited about the cheaper flights.

“I think it’s fantastic,” said Merle Morgan, a 31 year resident of Yellowknife who flies out several times a year.

The lowest fare offered by Air Canada is a bare-bones flight, which does not include a meal or choice of seating.

The flights currently offered by Canadian North and First Air have meals and refreshments provided.

Some fliers say they’re willing to forgo a meal to spend less.

“Services like those can be given up if need be,” said Helen Pearman. “Those dollars count when it’s such a short flight.”

A spokesperson for Canadian North said the airline welcomes the competition.

“We are a strong proponent of competition, and believe that having a choice is a good thing,” said Kelly Kaylo. “We offer a greater frequency of flights, and we have a much more superior service level.”

She said Canadian North offers seat sales four time a year which are on par with the fares offered by Air Canada.

Calls for First Air were not returned by deadline.

The cheaper flights do not sit well with everyone.

Melissa Stead of Marlin Travel keeps her allegiance with the existing airlines.

“Canadian North and First Air care about the North, and show it by sponsoring local events in the North,” said Stead.

Even with the much cheaper fares, Stead said Air Canada needs to do more if they want to impress Northern fliers.

“I’m not overly impressed with them.”

As a travel agent, Stead added that her firm would strive to give the best prices with the lowest costs for her customers.

“We continue to offer the lowest fares to our customers,” said Stead.

Debra Williams is the manager of media communications with Air Canada Jazz, and said the low fares are in place to stay competitive with the existing airlines.

“We have everyday low prices, and will continue to aim to be competitive in the North,” said Williams.

Jazz will fly a Bombardier CRJ-200 regional jet that carries 50 passengers.

The number of jobs that will be created in Yellowknife is not determined yet, said Williams.

“We are reviewing a start up plan, and details have not been determined yet.”