Originally Posted by 24left

Symmetre
Interesting post.


Not long after AC converted YVR/YYC - LAX/SFO to rouge, I had a bit of a bet with a couple of FTers (and similar conversations with AC employees who asked my opinion).

IMHO, The ultimate goal is to be "almost LH". Translation: Lufthansa is the brand for all international and a couple of domestic routes, germanwings does the rest. Clearly LH had a bit more luck with equipment and deployment. But I also think they had a clear strategy from the beginning.

LH is well aware that few routes will generate the revenue they need to keep high-end cabins available, and as we are seeing, F is being eliminated on a number of routes.

AC is not LH, not in terms of size or global coverage.

AC had a bit of a challenge last year when launching rouge as the 788s were late from Boeing and AC had to lease aircraft to cover the summer European etc routes for which they had already sold seats. It was messy.

Since then, AC has has also been "rouge-ing" routes which many thought were not "leisure", but which we now all understand were not generating the yield despite not being typical sun or vacation destinations. Should parts of the Canadian economy move downward, AC may obviously want to make more changes to routings and aircraft deployment.

In addition, there have been reductions to the J cabin on AC mainline narrow bodies and we all know some of the 77s are going in for refurb/refresh. Obviously it makes sense for AC to have a consistent-size J cabin on narrow-bodies should there be an equipment swap. And, in order to effectively sell the Premium Economy cabin, AC needs more equipment with availability.


MY opinion late last year was that AC had always intended to deploy a version of what LH did - leave the Air Canada brand as the international carrier plus a couple of key routes (maybe YUL/YYZ - LAX/SFO for e.g.), and move the entire rest of the domestic and transborder routes to rouge.

As people have posted here on FT have noted, and as those of us who have flown on some domestic routes have seen, along with the devaluation of the Altitude program, the J cabins are not full on many routes and many fliers won't pay for J. Sure, some pax have been lucky and now get to use their precious upgrades on those routes. However, the fact remains, if AC cannot monetize the J cabin on a route, then why have a J cabin on that route?

I am not an AC hater and everyone here knows that. I fly Air Canada and I fly other carriers when it works for me.

Like many others, I am more annoyed by what I see as preventable and fixable issues: the poor quality of aircraft cleanliness, the inconsistent meal quality and repetitive and/or limited choices, the mayhem with the red tags and the inconsistent and poor deployment of zone boarding, and the sheer annoyance that is Aeroplan (which for now, AC is tethered to).

I would have much preferred that Air Canada management and marketing people be clear upfront with their intentions. Perhaps the secrecy is a throwback from the old days. But the promises that routes would not be rouged with the ultimate changes made, did appear to be a bit odd.

The AC fleet is being modernized and upgraded. rouge will continue to exist as long as people are willing to pay more to fly direct to the destinations is serves.

This is my opinion. You are certainly welcome to disagree. Thanks.

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