Old Feb 8, 05, 11:11 pm
  #11  
boymimbo
 
Join Date: Jan 2005
Location: Seattle, WA
Programs: AC Elite
Posts: 298
Originally Posted by YOWkid
The routes will appear quickly once the agreement is in place. You need to put the horse in front of the cart and not the other way around.

Until we have a Schengen-style agreement with the U.S., I'm won't be counting the days.

But yes, I'd like to see this as well -- it'll be a nice and challenging test for AC.
I think AC has been through enough challenging tests lately, and I think allowing all airlines to compete in North America is a terrible idea. I realize that initially, AC will offer lower prices due to competition and that the selection of more flights to more places will be good for the traveller. It might also force AP to be more honest and comparable to US carriers.

On the other hand, Air Canada competing in a North American marketplace while having to adhere to legacy regulation (forced to HQ in Montreal, having dual language requirements, and higher taxes) will not bode well for AC.

Remember that most of the US carriers are losing lots of money due to competition. Delta, USAir, United are the big ones here. Only the LCCs are doing well. The US airline industry at its current state needs a serious adjustment to survive. Whether that's an airline being removed from the equation, further cost cutting, cutting routes, more alliances, etcetera.

As well, the US government was more than willing to bail out US carriers to the tune of $5B after 9/11, while the Canadian government granted AC no concessions during bankruptcy. Rules for bankruptcy are different in Canada than in the USA.

I can't see AC flying US only routes only either. What I see from the US carriers is them flying the major routes within Canada and competing directly with AC. And I think that US carriers will win this battle and knock AC out of the skies forever because they already have an unfair advantage.

Just my 2 cents.
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