Or maybe Canadians are taking alternative airlines to Europe
That would be me...
On my recent forays back into BA F territory, the flights have all been jam packed. On one LHR-YVR flight, there were a couple of open seats in F, but otherwise the plane was completely full. BA seems to have no problem filling a daily 747 on that route.
The real problem is that WS counted on AC not being able to reduce the cost structure enough to make the difference in CASM between WS and AC equal to the yield difference AC enjoys because of international network feed, Aeroplan, priority standby, City/Latitude/Sun passes for bulk purchasing, and J class.
WS' strategic problem is what to do when the market quits expanding. How does WS continue to attract passengers away from an AC that can match their lowest fares on any market? Further, at some point WS will have to play the yield enhancement game because the CASM reduction game is played out.
They will, of course, have to start offering additional ammenities, like PTV, lounges, interlining, J class, FF programs, trans-border routes, international routes, etc.
Hint to AC, moving the RIG fares to Tango could alienate the frequent traveller back to WS.
I'm pretty sure that's part of RM's plan. But plan or not, it's probably something that WS can count on. Once AC/AP announce next year's cutbacks, another swath of AC loyalists will be flying WS.
Will reserve comment on AC's actual CASM until we have a couple of quarters in, "post CCAA" and we can see the full effects of wage reductions and high fuel prices.
You might be better off to reserve comment until the first "post CCAA" labour negotiations, when AC employees try to regain some of their substantial losses over the past few years. AC showing positive numbers will only strengthen their resolve.