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Air Canada to launch cut-rate vacation carrier

Air Canada to launch cut-rate vacation carrier

Old Apr 16, 2011, 11:54 am
  #46  
 
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Does AC really need to serve more destinations?
I have no problem flying AC part way, then switching to another Star Alliance flight. It can allow me to compare AC to other airlines, good or bad.
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Old Apr 16, 2011, 1:26 pm
  #47  
 
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Originally Posted by TheGreatestX
Under-served Mexican and Caribbean destinations?? Are they crazy? How many flights per day are there from any given Canadian city to any given sunspot resort??
Lots. The 'targeting' going on is against Sunwing and Canjet; they have conceded that Westjet are too tough.
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Old Apr 17, 2011, 6:44 pm
  #48  
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A prediction: back to the future

This is thread is about another news item where AC says it is being hurt by competition, so it is starting something that is exactly like the competitor and hopes to drive them out of business (City Express comes to mind). And if they can't drive the competitor out of business, they buy them (Canadian). My prediction is that they will buy Westjet and try to bankrupt Porter and Transat but buy them if necessary. If someone else comes along to buy those airlines, AC will take them to court and win because they will have non-Canadian backers.
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Old Apr 17, 2011, 7:03 pm
  #49  
 
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Originally Posted by B1
This is thread is about another news item where AC says it is being hurt by competition, so it is starting something that is exactly like the competitor and hopes to drive them out of business (City Express comes to mind). And if they can't drive the competitor out of business, they buy them (Canadian). My prediction is that they will buy Westjet and try to bankrupt Porter and Transat but buy them if necessary. If someone else comes along to buy those airlines, AC will take them to court and win because they will have non-Canadian backers.
Where do you think they would find the money to buy another carrier? Besides even the most business friendly government would never let them buy Westjet.
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Old Apr 17, 2011, 8:43 pm
  #50  
 
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Originally Posted by will5404
Besides even the most business friendly government would never let them buy Westjet.
Not to mention the shareholders. Of both companies.
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Old Apr 18, 2011, 9:58 am
  #51  
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Originally Posted by Wally Bird
Not to mention the shareholders. Of both companies.
It's exactly the situation that was in place when they bought Canadian (PWA) who bought Wardair and CP Air. Westjet then started up to fill the vacuum. The shareholders had nothing to say. The point is that they have no record of innovation but an an excellent record at undercutting small competitors and buying out big ones, followed by bankruptcy. We'll see.
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Old Apr 18, 2011, 11:27 am
  #52  
 
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Originally Posted by TheGreatestX
Under-served Mexican and Caribbean destinations?? Are they crazy? How many flights per day are there from any given Canadian city to any given sunspot resort??
Well YYZ-PLS could use a frequency bump..but it needs J.
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Old Apr 19, 2011, 3:44 pm
  #53  
 
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I know there's never really been any Transat, Canada3000, Wardair etc. leisure-type service across the Pacific (Japan, ICN, HKG etc.) but I wonder if this new proposed LCC would conisder it?
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Old Apr 19, 2011, 4:10 pm
  #54  
 
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Originally Posted by jral
I know there's never really been any Transat, Canada3000, Wardair etc. leisure-type service across the Pacific (Japan, ICN, HKG etc.) but I wonder if this new proposed LCC would conisder it?
Oasis. Not a success.
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Old Apr 19, 2011, 7:06 pm
  #55  
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Originally Posted by jral
I know there's never really been any Transat, Canada3000, Wardair etc. leisure-type service across the Pacific (Japan, ICN, HKG etc.) but I wonder if this new proposed LCC would conisder it?
I highly doubt it as it doesn't fit the "leisure" market by definition.
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Old Apr 19, 2011, 9:30 pm
  #56  
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Originally Posted by B1
My prediction is that they will buy Westjet.
There is one small problem with that idea - AC's market cap is about $700 million, while WS's is $2 billion.
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Old Apr 20, 2011, 8:21 am
  #57  
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Originally Posted by The Lev
There is one small problem with that idea - AC's market cap is about $700 million, while WS's is $2 billion.
I should be more precise. First Westjet will join with Onex to buy AC. A Quebec court will prevent it based on amount of foreign ownership and then AC will buy Westjet and issue stock to cover it. Then they will declare bankruptcy. There is a history here.
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Old Apr 20, 2011, 8:39 am
  #58  
 
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Originally Posted by km101
If I wanted a sketchy airline I would fly transat or something similar.
That's exactly the point. AC mainline doesn't do sketchy, but sketchy can be profitable and they want a piece of that action.
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Old May 5, 2011, 3:09 pm
  #59  
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http://business.financialpost.com/20...-cost-carrier/

Calin Rovinescu, Air Canada chief executive, acknowledged Thursday that winning support from the airlines employees is pivotal for his plans to launch a new subsidiary low-cost carrier.

Air Canada said last month it planned to launch the new carrier within a year, which would allow it to access new leisure markets its current cost structure prevents it from turning a profit on like Amsterdam, Dublin, Casablanca, and sun destinations during summer months. It aims to create a fleet of up to 50 767s and A319s drawing primarily from the mainlines existing jets.

Mr. Rovinesu had said in an interview with the Financial Post last month approval from the unions may not be necessary to go ahead plan, though that was his preferred route.

But he admitted Thursday on a conference call that Air Canada may not be able to go ahead with the deal unless its pilots sign off on it, including the low cost carriers [LCC] lower wage and benefits.
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Old May 5, 2011, 5:50 pm
  #60  
 
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Originally Posted by km101
If I go on a vacation, I would rather fly on a top quality airline. If I wanted a sketchy airline I would fly transat or something similar.
When it comes to leisure travel, you are very much in the minority. When it comes to my friends' travel, cheap fare comes first. Full stop.
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