Originally Posted by
Bretmd
I see your point. However, won’t the exchange rate need to be closer to parity for Bellingham flights to be both profitable for Alaska and priced attractively enough so enough Canadians are enticed to drive there?
If the exchange rates go back to 2010ish levels, Alaska would likely be able to charge much more (in USD) for these flights while still offering a larger value proposition for Canadian travelers.
The advantage for Canadian travelers really doesn't have as much to do with the exchange rate as you might imagine. Costs for most airlines are mostly hard US$ costs (aircraft acquisition, global price of fuel etc). Certainly the appearance of a good deal when the C$ goes up has optical advantages, but you'll see CA-US flights drop in price as well (when priced in C$)
The advantages for BLI are
- avoid US taxes on intl flights (which is why you'll never see BLI-PVR/SJD). This gives the US carriers out of BLI an instant $40 advantage. Also PFC/AIF are lower than YVR which saves a little more, as US airports are more highly subsidized by the government. Infuriatingly, the AIF (passenger Facility fee) at @YVR is an extra $5 on US flights to pay for a US pre-clearance facility at YVR; so despite that looking like a Canadian fee, it's in reality a US fee/tax. Driving across the border is (still mostly) free.
- It's closer than YVR (or more convenient) for a significant chunk of the metro Vancouver population (probably 30% of the population, close to a million people). I live 70km from BLI and 30km from YVR, but in reality door to gate times are similar.
- It's a nice airport