Originally Posted by YEG Guy
Read the fine print on the contract. CARA agreed to a review of their operations against best of breed practices and this is the result. In short Cara has been overacharging their customers because they are not as efficient as Sky Chef et al.
Ah....the fine print! One wonders why it took 6 months to figure out that Cara was "overcharging" AC? Isn't that equal to $10M in savings or $20M since they have been in CCAA?
"Overcharging", strong language wouldn't you agree? On what basis do you make this statement? Are you saying that because one company might have lower operating costs that the company with higher cost is automatically "overcharging" it's customers? If that is the case than AC must have been overcharging it's customers on routes where it competes against WJ & SG? Maybe, just maybe Cara had to charge another $ 14M to make up for the money AC screwed them out of when they went into CCAA?
Who said Sky Chef's was more efficient? Not sure about your business but in ours it is quite common for our competitors to undercut our bids at first to win the business from our customers than slowly but surely raise the rates, add a surcharge here and a surcharge there.