Originally Posted by
HangTen
How much of the new capacity is from Rouged / Slave Ship bulked up flights?
Just adding those 109 extra seats on the Slave Ships on one YVR-HKG flight adds the same amount of asm capacity as WS operating almost 6 round trips a day between Calgary and Vancouver!
If the bulking up is removed, how much more capacity would there be?
And at what price all the new seats selling at and is acting like a discount coupon to try a new restaurant that is used once, but after trying it, people shy away from it the next time?
I was looking to go from Toronto to Italy later this month and as far as I could tell on the dates I wanted to go, (June 18-25), the Rouge flights had 15% more coach seats than Regular Air Canada and the price was 16% less.
For 15%, I'll take comfort every time!
The per seat operating cost of a rouge B767 is 29% less than mainline. If they were not making money on mainline or were break even on that route (as an example - and assumption) at a 16% lower ticket rate and 84% load factor. They're actually going to have an operating margin.
Whats key about the 84% load factor is if you put 84% of a rouge plane on the mainline plane its over 100% full. 115% in the case of the 767.
So this is another anecdotal example, which you've given where they've increased their margin substantially.
At those rates and factors look for some of the Rouge euro routes to go year round and join their dublin on a less frequent than summer basis of course. BCN for example was basically full from takeoff.