FlyerTalk Forums - View Single Post - What drives Air Canada's stock price?
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Old Jul 30, 2020 | 4:22 pm
  #480  
Transpacificflyer
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I don't think AC will have to worry about "competition" from the mainland carriers going forward. Rather, I expect that we will see AC pulling back from the PRC as the mainland carriers see their access on many routes curtailed. The reasons are obvious and air routes are low hanging fruit at this point. The new initiative of the 5 eyes to counter the PRC's policies will impact air travel and AC's investment in the PRC .Canada is the only one of the 5 eyes to not yet block Huawei in the 5G network, but once the announcement is made, we can expect some retaliation, and again AC is an easy target. Perhaps what AC will lose in respect to market access, it will gain by not having the cheap seat carriers driving airfares down. It will be interesting to see if AC declares the concern and reserves against it.
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