Originally Posted by
threepoint
Save your outrage. Same thing happens in many countries with many airlines. AC is certainly not the only carrier to structure its prices this way.
Yeah. And no.
Consider this.
All flights mid-March- lowest fares available
SFO-YYZ-ZUR (5819 miles)= $763 (Cost per mile: $0.13)
YYZ-ZUR (4025 miles)= $986 (Cost per mile: $ 0.25)
Thats a cost per mile difference of over 90%.
And it gets worse if you make it comparable distance.
YVR-YYZ-ZUR (5158 miles)= $1257 (Cost per mile:$ 0.24)
Essentially the same flight as the SFO one - 1 stopover in Toronto, but because it originates in Canada, you get to pay what - 85% more?
Now, I happily accept that all airlines do this, but I expect you will be hard-pressed to find airlines where the difference in airfares is as dramatic. 90% on cost-per-mile is not a minor discrepancy.
I mean, on the YYZ-ZUR route, consider the lowest one-stop option available:
UA - $920 via Washington - a staggering $65 less than AC - a whopping 7% less.
And how much does UA offer the IAD-ZUR flight for? $732, only 20% ($ 188 less) than what it charges Canadians.
And then theres YVR-ZUR. Lowest price: UA/LX via SFO - $1239. $18 less than AC. A whopping 1.4% less.
And SFO-ZUR on the same date: $715. Thats...ummm..how do I put this delicately... 43% less than the one-stop from Canada).
So, while I am happy to accept that other airliens do the same, I am somehow under the impression that they face a lot more competition than AC. In fact, if nothing, the numbers above seem to indicate that the "comeptition" doesn't really "compete" in Canada? I mean - 7% difference. Really? They're hardly competition. It seems to be more of a case of restricting capacity to boost airfares.
Too be quite honest, I don't think I've ever seen a Can-US-Europe Airfare thats cheaper than the US-Eur airfare. But I ve seen plenty of US-Can-EU airfares cheaper than Can-EU airfares. And I dont think its restricted to Can-EU travel either. Frankly, I think that just boils down to competition. Or lack therefor. Controlling capacity has kept airfare high and ACs fear is that EK bringing more capacity will bring airfares in line with the rest of the world.
At the end of the day, theres only one obvious loser in all of this: the Canadian.