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Old Jun 16, 2006 | 11:37 pm
  #51  
YYC-OPS
 
Join Date: Apr 2006
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Originally Posted by Coconut
Air Canada Jazz is a buisness with a goal of doing money. If 37 people are willing to fill up a dash 8 at 300$/person, Jazz will take advantage of the situation because their goal is to MAKE MONEY. Since when should Air Canada run money-loosing routes where they can make loonies?
Of course they're out to make money, and it's good business sense to maximise yield vs. revenue.

However, in the case of the above example, many people who did travel, have now been priced out of the market. It's proven from previous years loads that there's enough demand to fill 2 x 37 seat aircraft, but not all at the current prices. To be fair, the situation has eased somewhat in the last few months, previously the lowest priced ticket within 7 days of travel was over $300 but there are now some lower priced 'Tango' tickets in the mix. However, the route is still priced out at over 50% more than using the same equipment out of YLW on a similar stage length.

WestJet, despite their faults, still offfers some lower priced fare options on routes it operates with a relative monopoly.

I don't know where the comment about HNL on 757's came from, this is a straightforward comparison of similar routes using the same equipment, but one with competition, and one with none.
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