Air Canada is seeing some compression to its yield on services to the northeast USA, even as it ramps up flights to the region, say executives at the Montreal-based flag carrier.
Calin Rovinescu, president and chief executive of Air Canada, says the northeast is a "competitive environment" for the airline and that has caused some "damage to yield", during an earnings call today.
The airline reports a 5.4% decline in yield and a 5.2% decrease in unit revenue on its US transborder routes during the third quarter compared to a year earlier. It does not break out specific numbers for the northeast but cites competitive pricing activities on routes to Boston, New York and Washington DC for the fall in yield.
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I flew Porter a few weeks ago on the IAD-YTZ route, and I was impressed. Nice plane, nice service, and the Island Airport is a dream to clear customs. I went from stepping off the plane to standing curbside with my checked baggage in 11 min, having cleared customs ( no nexus!) in the process.
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Quote:
Originally Posted by tcook052
Calin Rovinescu, president and chief executive of Air Canada, says the northeast is a "competitive environment" for the airline and that has caused some "damage to yield", during an earnings call today.
Amazing, throw some competition their way, and AC suffers
And here we thought keeping EK out of Canada was not about AC being scared of competition.
I flew Porter a few weeks ago on the IAD-YTZ route, and I was impressed. Nice plane, nice service, and the Island Airport is a dream to clear customs. I went from stepping off the plane to standing curbside with my checked baggage in 11 min, having cleared customs ( no nexus!) in the process.
... well not quite curbside. still had the ferry ;-)
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Quote:
Originally Posted by YYCOllie
... well not quite curbside. still had the ferry ;-)
I was including the ferry! 11 min was from plane door, though customs, baggage reclaim, ferry and out the door of the ferry building to Erieann Quay waiting for my buddy to pick me up.
YTZ-Chicago (MDW) tomorrow - $1,119.00 one way. Oops not exactly North-East.
YTZ-Boston $738.00 one way
Porter is very happy charging the same fares as everyone from Toronto to Boston and Chicago and not very happy about what has happened to fares to New York City since June.
They will not be very happy when Encore starts flying into Boston and Chicago in a few years time and fares drop from $738 to $350 or even $249 which is about the most Westjet seems to be charging these days for most flights to New York.
I would dread to see what happens to Porters books when THAT happens.
They might have a problem with copyright infringment on the name Rouge, because they'll be talking about even more RED ink!
The airline reports a 5.4% decline in yield and a 5.2% decrease in unit revenue on its US transborder routes during the third quarter compared to a year earlier. It does not break out specific numbers for the northeast but cites competitive pricing activities on routes to Boston, New York and Washington DC for the fall in yield.
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aweeeee. AC has do deal with some competition? poor AC. can't we legislate this little problem away?
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Quote:
Originally Posted by ACB777
aweeeee. AC has do deal with some competition? poor AC. can't we legislate this little problem away?
There has been an open skies agreement between Canada and the US for almost 20 years. Nothing precludes any US or Canadian airline from flying between any 2 points on any route at any time. The great evil being the taxes and user fees imposed at Canadian airports.
There has been an open skies agreement between Canada and the US for almost 20 years. Nothing precludes any US or Canadian airline from flying between any 2 points on any route at any time. The great evil being the taxes and user fees imposed at Canadian airports.
but AC is losing out on these routes because of this. can't we legislate a partial closure of the skies at least? if not, what is this world coming to? AC should NOT have to compete
