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AC moves to attract more US sixth freedom traffic, but new pressures await

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AC moves to attract more US sixth freedom traffic, but new pressures await

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Old Jul 17, 2014, 1:27 pm
  #1  
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AC moves to attract more US sixth freedom traffic, but new pressures await

http://centreforaviation.com/analysi...s-await-177679

One of Air Canada’s key strategic initiatives during the next few years is to solidify its presence as Canada’s leading international airline, and its execution of that strategy is now more important than ever after rival WestJet has made the first concrete steps in acquiring widebody aircraft.

Part of Air Canada’s efforts in maximising higher-yielding international traffic is wresting sixth freedom flows away from the US to its Canadian hubs. This is particularly important over Toronto where the groundwork is in place to allow for seamless connections to Air Canada’s long-haul flights to Asia and Europe.

Air Canada believes that if it succeeds in capturing its projected share of the international transit traffic, it could generate CAD400 million (USD371 million) in annual revenue. But US airlines are improving their onboard product and bolstering long-haul flights, adding new challenges to Air Canada’s transit passenger scheme.
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Old Jul 17, 2014, 1:52 pm
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Good article.
I thought AC was targeting South American countries at one time, specially to Europe for people who did not want to deal with stricter US visa and security (i.e. fingerprinting) measures.
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Old Jul 17, 2014, 1:54 pm
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They'll certainly succeed at this once those high paying international travellers discover the luxury that is Rogue.
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Old Jul 17, 2014, 2:41 pm
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Then Canada must streamline the transit process at YYZ T3 to allow other airlines using that terminal the same "seamless transit" as at T1 for an equal chance to grab a piece of the pie.
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Old Jul 17, 2014, 3:15 pm
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Originally Posted by Clipper801
Then Canada must streamline the transit process at YYZ T3 to allow other airlines using that terminal the same "seamless transit" as at T1 for an equal chance to grab a piece of the pie.
Canada doesn't run the airport, the gtaa, privately funded company does.
They won't spend money if they can't make money - this the nature of private companies.
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Old Jul 17, 2014, 3:23 pm
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Originally Posted by InTheAirGuy
They'll certainly succeed at this once those high paying international travellers discover the luxury that is Rogue.
Rouge doesn't fly to BOS/PHL/NY where AC hopes to draw its traffic from and presumably the money connecting US pax is to be made where yields are relatively high ie mainline routes to Europe/Asia, not Rouge.

But if they are on Rouge it'll only be because its cheaper. The "Tango" people, if you will - you can be sure AC needs quite a number of them to maintain 85% LF.
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Old Jul 17, 2014, 3:45 pm
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They will just be building on a level of connectivity (and Customer choice) that already exists. I have operated Europe flights where inbound to Canada, the number of US Customs cards distributed, outweigh the Canadian ones. I still think the once rumoured YYZ-LAX-SYD route would have been an interesting run.
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Old Jul 18, 2014, 5:10 am
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And how does that work within a "metal neutral" jv and alliance?
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Old Jul 18, 2014, 9:31 am
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Originally Posted by ACYYZ/SD
They will just be building on a level of connectivity (and Customer choice) that already exists. I have operated Europe flights where inbound to Canada, the number of US Customs cards distributed, outweigh the Canadian ones. I still think the once rumoured YYZ-LAX-SYD route would have been an interesting run.
I too have noticed the US cards being distributed on the Asian flights I am most often on. I also see regularly CNX to/from latin America on Asian flights.
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Old Jul 18, 2014, 9:45 am
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If only Canadian airports were like those in most other countries in the world where you don't need to go through "immigration" if you're just transiting. I won't fly american carriers to other countries because of this ridiculous arrangement.
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Old Jul 18, 2014, 11:33 am
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Originally Posted by BenSenise
If only Canadian airports were like those in most other countries in the world where you don't need to go through "immigration" if you're just transiting. I won't fly american carriers to other countries because of this ridiculous arrangement.

AC is certainly pushing for that completely sterile CNX setup but CBSA is still in the dark ages. That declaration card that everyone must line up to hand in on arrival in Canada is the most archaic thing going.
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Old Jul 18, 2014, 12:11 pm
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Not sure what you all are talking about. The process is ducked up for Canadian connections for sure but the point of the story was US connections, not Canadian ones. For US connections you don't need to go through Canadian immigration at all. You just go through US immigration and the process is easier and smoother than in any US airport already.

It should be even smoother since you no longer have access to your checked bags. There's no logical reason why you should have to go through the security checkpoint unless you had a secondary screening. That sticking point is probably getting foreign airports to X-ray shoes since obviously shoes are especially dangerous in the US.

And when you're just transiting outbound YYZ is a breeze. There's no card to turn in, you just wave your passport at an official and walk through. It's a million times easier than transiting through the US where you have to do the full shebang including collecting your luggage.

I'm not sure Rouge would really disappoint. Remember that Americans are used to United level of service of service. They're shocked when they fly in a 320 that has IFE or are offered wine with their meal or a second meal service on a 7 hour flight.

It does mean the product is inconsistent which loses one of the main advantages AC had over US airlines. I used to tell people "if it says AC it means x, y, z". Now people are learning that "it depends, don't count on anything" which really tarnishes the mainline brand.
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Old Jul 18, 2014, 1:17 pm
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Originally Posted by Clipper801
Then Canada must streamline the transit process at YYZ T3 to allow other airlines using that terminal the same "seamless transit" as at T1 for an equal chance to grab a piece of the pie.
Originally Posted by BenSenise
If only Canadian airports were like those in most other countries in the world where you don't need to go through "immigration" if you're just transiting. I won't fly american carriers to other countries because of this ridiculous arrangement.
Originally Posted by loosegoose
AC is certainly pushing for that completely sterile CNX setup but CBSA is still in the dark ages. That declaration card that everyone must line up to hand in on arrival in Canada is the most archaic thing going.
Read the following post: one of our FT'ers indicated that it's the airport management's fault for not providing a seamless international transit. The fact that international to international or international to U.S. transit passengers with no intention of entering Canada must go through full Canadian CBSA process such as YYZ T3 is an airport management issue, nothing to do with CBSA/Canadian government.

Originally Posted by Swarez
Canada doesn't run the airport, the gtaa, privately funded company does.
They won't spend money if they can't make money - this the nature of private companies.
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Old Jul 18, 2014, 3:59 pm
  #14  
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Originally Posted by Clipper801
Read the following post: one of our FT'ers indicated that it's the airport management's fault for not providing a seamless international transit. The fact that international to international or international to U.S. transit passengers with no intention of entering Canada must go through full Canadian CBSA process such as YYZ T3 is an airport management issue, nothing to do with CBSA/Canadian government.
private corporations do not determine federal policies. the requirement to pass through immigration despite being in transit with no intention of staying in the country is a federal policy.
a private management company cannot make the decision to channel passengers from one flight to another without having to go through CBSA.
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