Originally Posted by
Gus2013
There were many long discussions on this discussion board about how AC was virtually forced to use the HD to CDG due to terrible yields out of YUL. Now apparently they can add a non-rouge 763 and the yields are fine to support that? If the previous arguments were correct, then the second flight will be a loss-maker for the sake of making TS and AF's lives difficult.
The 763 operating at a loss isn't a given - it may just be less profitable than the 777HD. AC never said YUL-CDG was loss-making, they just said it was one of their weakest TATL routes.
AC has probably calculated higher yielding FFs are worth appeasing on a relatively comfortably 763, they know they can fill the rest of the 763 at break even, and they can fill the 777HD with junk yields (as necessary) stealing traffic by undercutting AF and others while still earning a good margin on the 777HDs seat costs.
It is worth noting though that AC is charging identical prices for the 763 service as 777HD next summer. AC obviously has determined customers don't really care about the product difference between the 2 aircraft.