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Old Dec 26, 2003 | 7:39 am
  #30  
B767
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Join Date: Dec 2002
Location: GRIMSBY, Ontario CANADA
Programs: AC E50;MM
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by parnel:

My continued point being that the discussion was about fares not bottom line;of course I know the difference.

Ac's bankruptcy was not due to the fares charged but a huge debt from the purchase of Canadian
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Well than let's see. AC is in bankruptcy protection, is not making any debt payments (on it's own debt or debt inherited from CP), is only making lease payments on approx 2/3's of its fleet (those that they have renegotiated leases with), has received wage and work rule concessions from it's unionized employees and yet to this day it is still losing money! I would suggest to you that AC has not only an expense problem but also very much a revenue problem. So when you make comments that in your experience AC has been cheaper than WJ I can't help but note that AC is losing money and WJ is profitable and that it is very east to price yourself out of business by selling below cost. Market share at the expense of profitability is a dangerous game. What I find interesting from a business point of view is that WJ, a "LCC" is able to charge more for less. One would have thought that AC, a so called "full service airline" would be able to a charge a premium, even a small one and would not have to discount its price or product to compete with WJ. Yet according to your experiences this is not the case!

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