WestJet's summer arrival in Yellowknife sparks northern fare war

At least one northern airline says it may have to make changes to compete with discount airline WestJet, which will start flying in and out of Yellowknife in the summer.

The Calgary-based airline announced Wednesday that starting on May 4, 2009 and only during summers it will be offering daily one-way flights between the N.W.T. capital and Edmonton for $149, not including taxes and surcharges.

A round-trip flight, with all taxes and surcharges, would cost $376.25.

On the heels of WestJet's announcement, Yellowknife-based Canadian North launched a seat sale, offering return flights between Yellowknife and Edmonton for $100 one-way, and between Yellowknife and Calgary for $150 one-way (plustaxes and fees)between May 3 and Oct. 31. The sale runs through Dec. 22.

With taxes and fees included, Canadian North's sale fare between Yellowknife and Edmonton would add up to $273.35 round-trip.

But Canadian North president Tracy Medve said the airline may have to make some bigger changes to its service in order to stay competitive.

"We don't charge people for pillows and blankets and headphones and food; we provide all that," Medve said Wednesday.

"So, if we're going to compete on price which is the big reason for being excited about WestJet coming, I guess then we have to look at what that might mean for that type of service model that we have."

Air Canada Jazzhas alsostartedmatching WestJet's fares. It is offering one-way flights between Yellowknife and Edmonton for $149 without taxes or surcharges starting May 4, according to that airline's booking website Thursday.

First Air charges about $600 for return flights between Yellowknife and Edmonton.