"We also fly from Tornoto City Airport YTZ

Discussion in 'Air Canada | Aeroplan' started by The Lev, Jul 18, 2011.  |  Print Topic

  1. The Lev
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    The Lev Silver Member

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    Am I the only one who is getting really annoyed by the YTZ announcement pop-up every time I look to book a flight that involves YYZ - especially those where there is no flight into/out of YTZ without a crazy connection?

    At least it looks like they "fixed" it so this pop-up does not obscure the desired departure date.

    ...Now if only they'd allow you to view YYZ and YTZ flgihts together on one screen!
     
    chaptwo likes this.
  2. kyunbit
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    kyunbit Silver Member

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    use ITA for that :)
     
  3. LLfromTO

    LLfromTO Silver Member

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    Is AC making money on the YTZ-YUL flights? Why isn't it trying to saturate the competition with $39 flights like JetBlue or Southwest?
     
  4. QSG
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    QSG Gold Member

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    AC would no doubt be brought before the competition authority.....also they only have so much money to waste needlessly!
     
  5. Canadi>n
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    Canadi>n Gold Member

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    Because PORTER is setting the discounting of fares in the market and AC is just matching. At the moment AC is focusing on moving some of its YUL regulars from YYZ to YTZ with promotions. For most residents in the GTA, YTZ is not a convenient airport, but for a few hundred thousand of us who live in the city centre it works just fine. As word gets out, we'll become more accustomed to considering doing other destinations with a connection at YUL, though most people would prefer non-stops where YYZ dominates. For example, two of my mini-RtWs hop the Atlantic on LX F flights from YUL, so I opted to fly there from YTZ which is about 2-miles from my condo, instead of YYZ. Since the inflight service is equivalent to J on YYZ-YUL flights, a Y segment doesn't bother me.

    Doubt AC is making money on this route. It's a beachhead to build upon as slots open up. It is critical to be able to offer this convenience to business travellers between YYZ-YUL (and soon YOW) who are the key market for this service, augmented by the likes of myself who live downtown. However, this is not a heavy business travel period so loads will be light and fares low...ergo, no profit for a long while.
     
  6. The Lev
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    The Lev Silver Member

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    AC is probably not yet making money on the route because it is only just being launched. I think they will eventually make money because the Q400 is a very cheap aircraft to operate and they are charging a premium for YTZ flights over YYZ.
     
  7. ?? AC going to make money?????? What? WHEN?
     
  8. Post real facts please..they are making money:rolleyes:
     
  9. QSG
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    QSG Gold Member

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    They made money in the 2nd quarter? Have they released the financials?
     
    why fly likes this.
  10. Its not how much profit or loss they report...its about how much cash they grow, or shrink, their balance sheet by. Otherwise known as EBITDA(R)
     
  11. Classic!
     
  12. Classic what....EBITDAR is the recognzed method of measuring cash flow..way above some heads we know but that's how it is
     
  13. The Lev
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    The Lev Silver Member

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    It is the classic measure used by unprofitable companies who hoodwink investor into believing assets never need replacing.
     
  14. Rejuvenated
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    Rejuvenated Gold Member

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    No you're not alone, I didn't enjoy the repetitive pop up announcement either. Perhaps they wanted me to fly YTZ-YUL-LHR instead of YYZ-LHR. :rolleyes:

    But yes as you've mentioned, they've eliminated the auto pop up.
     
  15. Only to those who can't read a balance sheet.

    Classic business school economics don't seem to apply to airlines because they use capital leasing as their formula for asset replacement while having such low margins in a capital intensive business model. Just about every airline should have about 5% more EBITDAR just to cover asset replacement in a normal manner. ISFR may give us more exact numbers in that regard although I have not familiarized myself with the new rules for replacement of capital assets, if there are any.
     
  16. we can agree on one thing. Business schools never envisioned running a business to lose money. :)
     
  17. The Lev
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    The Lev Silver Member

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    IFRS requires them to put all the off balance sheet leases on the balance sheet. It also requires them to use "realistic" depreciation periods and to regularly test "book" value of assets to market value. It will almost certainly result in greater fluctuation in reported earnings as asset values will get written up and down depending on the airline's projected discounted cash flow and market price for used aircraft. When times are good, they'll write up asset values, but when times are bad they will be hit twice - once by lousy operating results and a second time by writing down assets.

    Will be fun to watch.
     

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