FlyerTalk Forums - View Single Post - Nat Post Terence Corcoran: Why does this airline (AC) exist?
Old Mar 23, 2010 | 9:15 am
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Originally Posted by Ken hAAmer
And now I'm hearing that Emirates will steal all the Canada-India traffic. Well so what? Air Canada is now just giving most of that traffic to other airlines, notably Jet Airways, in return for a skim off the top.
AC gets a positive return on such agreements, as do the partner carriers. That's the whole rationale of such marketing agreements or alliances. On its own, with the cut throat discounting, AC could not make money flying to India but in partnership with Jet, or LH, which have more capacity and established customer bases, AC can feed passengers onto their flights, make money on its portion from NAmerica to a European gateway. Why are there Alliances? For just this reason. It becomes a win-win for both carriers as they can strengthen routes that are sustainable and not worry about ones that are marginal.
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