First Air on firing line
Chamber surveys businesses about discounted airfares

Jeff Colbourne
Northern News Services

NNSL (Aug 19/98) - The Yellowknife Chamber of Commerce will survey its membership to see how they feel about a First Air deal offering special fares to BHP mine employees.

Chamber president Cheryl Best, recognizes the airline's right to drum up business, but the deal goes against the basic principles of buying North.

"The chamber's position is where we see obviously both sides of the story," said Best.

"It's a business deal and a businesses success depends on its ability to market itself and discounted airfares is one of those options that a business has. The other side of the story is that we stand for growth and economic development in Yellowknife and we don't particularly feel that the discounted airfares are good for the North."

Last week, city council found out that a BHP employee group made a deal with First Air to buy thousands of return tickets from Yellowknife to Edmonton for as low as $375 per ticket.

Following the discovery, city council agreed to send letters to the Yellowknife Chamber of Commerce, NWT Chamber of Commerce, Association of Municipalities and the GNWT. The Yellowknife chamber, aware of the situation, had not received a letter from the city as of last Friday. However, the executive met last Wednesday and decided to send a survey out to its 535 members and get feedback. Best said they won't get 100 per cent response, but she had hoped to hear back from most of them by Monday at 5 p.m.

Vi Beck, who is standing in for NWT Chamber of Commerce executive director Bob Brooks, said she could not make a stand for the chamber on the issue. They have received information about the First Air/BHP employee group deal.

Canadian North regional director of sales, Kelly Kaylo, said cut-rate fares to those who live in the south will take away from the Northern economy.

But, if a person or company plans to travel and would like to buy blocks of tickets at regular prices available to the general public, they can.

"If you want to come in and pay for six-months of travel, by all means, you can do that. Generally you'll get the cheaper rates that are in the system today because you are booking so far in advance," said Kaylo.

"If you manage your travel and look at what's available today, you really don't need a special fare to encourage rotational workers," she said, referring directly to the BHP/First Air deal.

Councillor Dave Ramsay was pleased to hear Canadian North's stand on the issue. Ramsay said that offering discounted airfares to rotational workers at the mines takes away from the North.

"First Air is a Northern-owned company. What are they thinking?" said Ramsay.

"I think we should take out a full-page ad thanking Canadian for holding back and not offering them the same deal. They're being good corporate citizens. Business is business, but hey, a lot of people have done a lot of hard work in that diamond task force and to have it go up for nothing because people can fly out of here for $375 return on an open ticket. It's not right."

Bruce Jonasson, First Air's general manager said the deal was a normal one where a group of companies brings them an incredible volume on a slower day of the week. It is not an anti-Northern development deal.