Flair Airlines says it’s offering flights for a loonie. Experts say it needs to get real

Ultra low-cost Flair Airlines says it has launched a $1 base airfare deal for passengers flying back to Canada from sun destinations — but some experts are skeptical of whether the airline can sustain the promo.

Flair says the one-dollar airfares, currently reserved for northbound flights from Mexico, the U.S., Jamaica and the Dominican Republic, are now offered permanently on its website.

Eric Tanner, vice-president of revenue management and network planning at Flair, said the deal is a way to “give back to our customers.”

“We’re coming up on the beginning of our winter season where we stop flying quite as much domestically and we start flying quite a bit more internationally,” he said. 

He noted that those flights southbound are full, but that the aircrafts are “quite empty” when they come back to Canada — so the deal incentivizes passengers to travel back up north. When the spring season begins, the deal will apply to southbound flights.

While the deal applies only to select flights, the airline said it plans to offer more routes throughout the year. The company stressed in a news release that the deal is “not a one-time gimmick.”

Others disagree. “It’s a gimmick,” said Ian Lee, an associate professor of management at Carleton University’s Sprott School of Business.

“This is essentially a loss leader. You see this in grocery stores and in retail,” he said. “They’re doing this to try to generate, drive business to the site and get people comfortable with flying on this airline.”

“They won’t be able to sustain it for very long because the operating cost per customer is significant.”

The airline acknowledged that the base fare is only one component of the ticket’s total cost. 

Other costs to consider include carry-on and checked baggage fees (which won’t change with the promo), seat selection fees and other airport fees that are collected each time you travel.

The company announced on Wednesday that it is seeking investors to restructure its finances and address its debt.