Discount airline key to Air Canada’s success

Discussion in 'Air Canada | Aeroplan' started by ACMM, Nov 4, 2011.  |  Print Topic

  1. ACMM
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    http://www.thestar.com/iphone/busin...-discount-airline-key-to-air-canada-s-success

    November 4, 2011 00:11:00
    Vanessa Lu

    BUSINESS REPORTER THE CANADIAN PRESS

    Despite strong union opposition, Air Canada believes that starting a discount carrier remains critical to the airline’s long-term success.

    “This is not an invention that I dreamed up yesterday,” Air Canada president and CEO Calin Rovinescu told analysts on a conference call Friday. “There has been a tremendous amount of success that we have seen in market after market after market all around the world of the low-cost model.”

    (Posted from my milePoint enabled iPhone)
     
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  2. tcook052
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    And haven't there been as many examples of LCC failures including those launched by AC in the past? :confused: And if it couldn't or didn't work how many years ago with a much smaller WS and an ailing CP how will it fare any better this time around? Calin may well be dreaming except in technicolour, also likely not another invention he dreamed up yesterday either.
     
  3. I think the dreamers are those who comment w/o facts at their fingertips. AC has effectively run a discount airline with power by the hour or seasonally leased planes for their summer routes to places like DUB and GLA plus Athens,etc. These have been very profitable runs done under the mainline umbrella which proves that with more operating flexibility they would do even better. The LCC model for AC is based on copying others like AT, Sunwing and other similar carriers. That leaves the mainline as a legacy carrier with all its inherent inefficiencies to do steady eddy flying on their regular business focused routes.
     
  4. tcook052
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    What nonsense. :rolleyes: Imagine claiming AC has effectively has run a LCC on certain routes while still using union jobs.

    FWIW I've been around long enough to recall the "facts" such as those same charters forcing AC out of the GLA market which it operated in for decades. Those charter operations have also been in business for decades and for AC to suddenly create this new entity and grab big market share is IMHO optimistic to say the least.

    Of course you neglected to mention another competitor much closer to AC's home, Jazz, which has moved into the leisure market to stake its own claim and won't roll over and give up hard earned market share.

    No, based on the past track record of AC's in creating and successfully running a LCC over time I'd say the odds of it getting off the ground and surviving more than a few years is low.
     
  5. I don't want or need to get into a discussion with such an expert as yourself but my terminology used was "effectively".
    The people i know at AC were the ones who told me what the summer runs mean going forward.

    However. I bow to your supreme knowledge of what nonsense is since it appears to be another expertise.
     
  6. tcook052
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    Whatever. :rolleyes:

    I don't believe I ever claimed to be an expert, just a long-time keen observer of the industry with an opinion. You have a different opinion obviously and that's all you had to state, not the boorish personal comments.
     
  7. Just did a quick review of your posts on different sites......I will stick with my nonsense comment and end it there although its noticed you like the final word in any debate which must mean something.

    I and my team fly with AC almost every week of the year to all parts of the world they fly to and we ask questions to understand why they do certain things and, we get answers, one of which I shared here.
     
  8. ACMM
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    Well the nice thing about milePoint is we can have different views and thoughts. I do not think personal comments are necessary. You can get enough of that on TOBB.

    (Posted from my milePoint enabled iPhone)
     
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  9. Calling someone's post nonsense is not a personal comment at all. In any event I'm still pretty new here so I guess the apprenticeship is still on.
     
  10. tcook052
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    Yeah, ACMM, agree the petty personal comments belong elsewhere though I guess it must mean something when some have to resort to that. Too bad as TB hasn't been like that too much since it's inception.
     
  11. ACMM
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    Well milePoint is still growing so we can all work on it and make it what we want it to be. :)

    There will always be tiffs. We Move on , have a pint, and of course keep flying. :D

    (Posted from my milePoint enabled iPhone)
     
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  12. ACMM
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    From today's globe and mail ...

    Air Canada’s Rovinescu says race is on for leisure market

    http://m.theglobeandmail.com/globe-...leisure-market/article2225249/?service=mobile

    In the world according to Calin Rovinescu, low-cost airline divisions are a way of the future and Air Canada can’t afford to be left behind.

    Air Canada’s chief executive officer said Friday that he’s pleased with the carrier’s strength in capturing international business traffic, but the race is on to compete for leisure passengers as established airlines seek to create discount units.


    (Posted from my milePoint enabled iPhone)
     
  13. I rest my case.
     
  14. tcook052
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    A way of the future? Or back to the future?
     
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  15. tcook052
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    http://ca.reuters.com/article/businessNews/idCATRE7A31WK20111108

    Unions ground Air Canada's low-cost carrier plan

    But Air Canada, whose previous low-cost airlines were quickly folded into the mainline carrier, has struggled to persuade its four major unions to support its plan.

    A new collective agreement for flight attendants includes no mention of the low-cost carrier. The attendants rejected an earlier contract that included provisions on the new carrier.

    -----------------------------

    Independent airline consultant Robert Kokonis questioned Air Canada's priorities.

    "Air Canada needs to focus on operating and managing the core airline," he said. "When you open up a separate division, it could potentially take management's eye off the ball."
     
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  16. ACMM
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    I read something about a 'scope' clause?

    (Posted from my milePoint enabled iPhone)
     

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