Originally Posted by
sp4294
Why would you assume that AT will fold? This notion assumes a fundamental shift of pax from TS for Rouge and, frankly, I'm still at a loss to understand what fundamentally makes Rouge more attractive to the average price conscious tourist?
Why does it seem we go in circles all the time?
He didnt say HE thought AT (you mean TS) will fold, he said AC must be planning for a TS pull down.
This is simple economics - Rouge is taking dead aim at Air Transat. IF Rouge's entry and/or additional seats do not spur corresponding additional demand, the market will be out of equilibrium.
Rouge's lower costs enables them to slash prices and maintain required margin. But how low can they go? IMO, there will be too many seats chasing too few passengers once Rouge is fully up to speed - Whether you think TS is likely to prevail or Rouge, we can each have our opinion.