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Canada's newest discount airline says it will let travellers bid on unsold seats.
NewLeaf says the idea is part of a partnership with Calgary-based company Jump On Flyaways.
Roger Jewitt, CEO of Jump On, says there are a lot of airline seats that fly empty every year because airlines use complicated revenue management techniques to maximize their seat revenue.
He says Jump On's business model is to collect bids on the potentially unsold seats, and let the airlines consider the best bid.
He says it is conceivable a person could be the only bidder on a particular seat and get the flight for $1, though the company's website notes air travel partners will consider "reasonable" bids and can decline them.
Jump On opened its online portal for NewLeaf’s 11 routes on July 19.
The travel company’s destinations include Saskatoon, Regina, Edmonton, Winnipeg, Abbotsford, Hamilton, Halifax, Kamloops, Moncton, Kelowna and Victoria.
NewLeaf is the first airline to partner with Jump On to offer seat bidding.
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