The Monopoly Ends.....for now...

Discussion in 'Air Canada | Aeroplan' started by Wawa, Mar 21, 2011.  |  Print Topic

  1. Exciting times for YAM flyers.....a funny thing competition will do.....with Porter's announced arrival to YAM, AC has lowered fares......but only from the day competition starts May 4, 2011...... YAM-YUL base fares go from $374 each way to $169 each way+++ in Tango
    $956.49 with no status miles AI..... to after May 4th $493.19 no status miles AI.
    All I can say is these past few years of Gouging AC fares haven't done much to build good will.
    Good Luck Porter.....keeping 'em honest.
     
  2. milestoburn
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    milestoburn Gold Member

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    typical of AC
     
  3. East_Yorker
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    Why do people seem to think that AC should be some sort of benevolent transport company, flying people around Canada on an altruistic cloud of happiness?

    It's not a Crown Corporation any longer. It's a business; it's in business to make money. They are not holding the good citizens of the Sault hostage. There are other ways out of town. Now that there is competition...that's terrific for the flying population. I guarantee that if Porter were in the same boat, they would also have charged whatever they could, until they were forced not to by competitive pressures.

    We will not have an airline industry if we don't stop selling seats below cost. The US-based carriers would love to come in and pick off our best routes, so let's have reasonable competition in Canada!
     
    c_9 likes this.
  4. We need to have a balance of competition, lets hope Porter lasts long enough to offer it. obviously we need more American airlines to compete on more USA routes lets hope as they strengthen their balance sheets that will happen. Virgin leaving YYZ was not good news.
     
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  5. milestoburn
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    does AC not at least owe us a little given the fact that our government protects their business from competitors to a very high degree. AC only seems to compete when they are forced to and to be perfectly honest, when you have duopoly - at best in the limited cases - that is not good enough.
     
  6. tomh009
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    tomh009 Gold Member

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    I was looking at the Porter press releases today and was shocked to see that their load factors are in the 50% range. I know Jazz is lower than mainline AC, but can you really have a sustainable business if you are consistently flying your planes half empty -- and not charging premium fares? :eek:
     
  7. En-Route
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    I would say Porter flights are just over half full.

    Took a Southwest flight last week and will take a Porter flight next week.
    Want to mix it up and remind myself that AC is still a very decent North American airline company
     
  8. tomh009
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    Half full or half empty indeed. :)

    Yes, Porter's published load factors are in the 50-55% range. AC domestic and WS load factors are both around 80%. Maybe the Q400s are cheap to run, but Porter's fares are very aggressive, too.
     
  9. AC is running full page ads in the Star today saying there are back at the Island airport. LOL before the first plane has landed they spend $$$$ millions in legal fees paying Porter. Now they will spend $100,000 telling the public they have come back to the airport they said was uneconomical to fly from... Interesting Porter will fly about 250,000 seats from the island. Lets hope Porter can make money from it at some point, before AC buys them.
     
  10. I don't believe the US airlines want real competition either, they would rather form partnerships with Canadian carriers or otherwise keep fares high. Why would they want a repeat of what's been happening with US airfares for the past years in Canada?
     
  11. ACMM
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    I would very much like to see Continental provide solid routing from the island ... between their routing and AC it may add some nice options for me.
     
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  12. As long as they dont help AC put Porter out of business it would be great. But if these airlines come to help AC ruin Porter, its not good for Canada.
     
  13. The Lev
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    Porter has frequently said their breakeven is roughly 50%. BBD makes similar claims in their promotion of the Q400 -yes it is very economical. http://www2.bombardier.com/q400/en/turbo.jsp
     
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  14. AC has consistently run losses, with 80% full planes and business class?? So that method of profitability does not work well either.
    However Calin did get a 77% increase in pay so the airline business works for some :)
     
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  15. East_Yorker
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    Of course United/Continental will not be helping anyone at Toronto island: http://goo.gl/HD1LF, as they've given up their slots.
     
  16. ACMM
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    Yes - unfortunate that this transpired :(
     
  17. tomh009
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    ... and it's not clear yet who will get those slots.
     
  18. ACMM
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    It would be nice if AC got them but I am sure that will not happen - they may get 50%? Time will tell...
     
  19. tomh009
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    If they're lucky ...
     
  20. lets hope its not AC, they will only use slots to shut down the Island airport again.
     
  21. ACMM
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    I am hoping Air Canada does in fact get those slots or a majority of then. More routes out of the island on AC is a good thing.
     
  22. Rather short sighted thinking. :confused:AC is not serious about the island they wont even use Jazz, AC contract a airline to provide the service so as soon as Porter is out of business they can cancel the service.
    Its fairly obvious we need some competition after this years fiascoes with AC's marketing initiatives with e-certs and 50% increase in reward tickets and cuts in miles awarded.
    We saw how AC anti-competitive behavior with Virgin ended our SFO flights. Interesting AC is upset Emirates might do the same thing to AC:(. For AC to fend off Emirates the taxpayer ended up with a $400 million bill. If AC does the same to Porter again we end up with no island service and back to high prices from AC and poor service.
     

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