Air Canada to launch cut-rate vacation carrier
#46
Join Date: Dec 2010
Location: Victoria, BC, Canada
Programs: AC A50K
Posts: 339
Alliances
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.
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.
#47
Join Date: Jul 2003
Location: Salish Sea
Programs: DL,AC,HH,PC
Posts: 8,974
Lots. The 'targeting' going on is against Sunwing and Canjet; they have conceded that Westjet are too tough.
#48
Join Date: Apr 2000
Location: Toronto, Ontario, Canada
Posts: 3,665
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.
#49
Join Date: Jul 2008
Programs: Via Preference Privilege, AC*A, Fairmont Plat, SPG Gold
Posts: 1,334
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.
#51
Join Date: Apr 2000
Location: Toronto, Ontario, Canada
Posts: 3,665
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.
#52
Join Date: Nov 2001
Location: YYZ
Programs: Earned: AC SE, AA PLT - Comped: DL PLT, Avis PC, Hertz Platinum
Posts: 781
#53
Join Date: Aug 2001
Location: 44*38.670N 63*37.548W
Programs: several
Posts: 1,870
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?
#57
Join Date: Apr 2000
Location: Toronto, Ontario, Canada
Posts: 3,665
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.
#59
A FlyerTalk Posting Legend
Join Date: May 2002
Location: YEG
Programs: HH Silver
Posts: 56,417
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.
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.
#60
Join Date: Jan 2005
Location: Vancouver, Canada
Programs: United MileagePlus Silver, Nexus, Global Entry
Posts: 8,798
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.