kwflyer

Very good analysis. This is where marketing ethics should play a larger role, but sadly does not and 1960's management style prevails.

Ben Lipsey

Fair assumption, but I take issue with your third point, in that supply in that is not artificially restricted. We are putting on more seats in more markets, but demand seems to outstrip supply, and therefore I don't concede the rest of your argument. (Not to mention the implication we collude with WS is something that couldn't possibly be further from the truth.)

In any other industry with a perishable and rivalrous product, this is an accepted standard. But somehow airlines are different? Forgive me, but I don't understand.

FlyerAl

When using my UA*G miles to fly AC recently, my FF status was automatically in the reservation but OLCI still tried to charge a bag fee. To make things more comical, the stupid AC ticket agent insisted on seeing my *G card in order to waive the bag fee and claimed my travelling companion on the same reservation wasn't entitled to any free checked bags. Both bags had to be checked under my name

In the typical Canadian marketplace fashion, I wouldn't be surprised if there was collusion involved between WS and AC in introducing this new bag fee policy. The "pay for only what you use" mantra is perfectly acceptable with the ULCC model like Spirit and Frontier where they charge $39 fares, but I doubt the WS/AC duopoly will be passing along any savings to customers.

Ben Lipsey

This is actually protocol. Because of the fact that your status benefits are only meant to be used for you (rather than others travelling on your points) the agent was right in asking to see your card if the system didn't recognize it. They were also correct in that your companion was not allowed any complementary bags (unless so permitted by their own status) so putting them under your own name is the best thing to do in this case.

FlyerAl

If demand seems to outstrip supply, then perhaps the Canadian government should consider changing their aviation policy to allow foreign competition in the domestic marketplace. That ought to help meet the increased demand that Canadian carriers are having difficulty in fulfilling.

Well obviously you'd never admit to that, but that doesn't mean it isn't so. Similar behaviour exists among the Big 3 Canadian wireless companies.

Genetk44

Got it. Not a bad idea about changeing for carry on.

Ben Lipsey

Well that's a different discussion, and I think a few posters have 'typed' themselves blue in the face discussing Canadian aviation policy. I respect your opinion, but won't engage on that here.

And I'm sure NASA would never admit the moon landing was a hoax, but that doesn't stop hundreds of conspiracy theorists believing what they will. Point is, if you look at the history between our two companies, I'm sure you can judge the state of our relationship for yourself.

FlyerAl

Then AFAIK, AC is the only carrier in Star Alliance that doesn't extend baggage benefits to companions travelling on the same PNR as the status member.

bingocallerb22

Just checked a flight I have been watching. The fare price hasn't dropped $25. Maybe IT cannot work the price drop as fast as the bag increase?

Ben Lipsey

Wirelessly posted (BlackBerry 8130: Mozilla/5.0 (Linux; Android 4.4.2; SM-G900W8 Build/KOT49H) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/37.0.2062.117 Mobile Safari/537.36)

Really? That's actually news to me. My anecdotal experience has actually been that only UA has permitted it, but I could very well be mistaken.

YUL2YEG

I'll seasonally adjust the datahttp://www5.statcan.gc.ca/cansim/a47
and do some analysis, and maybe find some demand data, when I'm not on my phone. However given the record loa factors that are always announced I was basing point (3) on some anecdotal evidence.

As to point (4) collusion can come from various market signalling, etc and do not necessarily require secret meetings in back rooms which I am sure you wouldn't do.

When we accept the premise that corporate profits in a duopoly are everything and total economic welfare is something that should not be considered then by all means raise prices and extract everything you can from those customers who have no choice but to use your services.

FlyerAl

I would like to do that. Where could I find info on your profit margins?

gglave

I think the collusion argument would stand a little stronger if the airlines were highly profitable - If AC was making billions in profits - But they're not. Now, perhaps they're colluding so they bleed instead of hemmorage, but it's still a weak argument.

PLeblond

Both AC and WS are public companies. Its very easy to find that information.

What I find truly funny is that Airlines are greedy pigs if they make money (on the level of 1% to 5%) on the backs of their poor customers. And then, in subsequent years when they lose hundreds of millions of dollars, they are badly managed with bloated management, idiots who aren't in touch with what customers need.

Can't have it both ways.

gglave

If you want to complain about high fares, you're barking up the wrong tree.

Blame the federal government who see air travel and airlines as a revenue centre -

- High airport 'rents' = High landing fees
- NavCan fees
- High taxes on jet fuel
- "Security" fees and federal consumption taxes on tickets

...all of those costs are passed on to you in the form of higher ticket prices. So if you want lower ticket prices go tell the feds to go suck on some other teat.