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Will AC continue to ignore YYC?

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Old Jul 25, 2017, 9:52 am
  #46  
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Originally Posted by YXUFlyboy
There is absolutely no way YVR has demand for all the routes it serves; AC is deliberately routing Pacific traffic through it.
You could say that with every airline in the world. IE - CX with HKG, LH with FRA, BA with LHR, ...., ..... It defines the term HUB.
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Old Jul 25, 2017, 9:55 am
  #47  
 
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Originally Posted by YXUFlyboy
The whole point is to discuss the why. Is this too cerebral a topic for you guys?
My guess is that it is because AC has limited resources and they work on determining (right or wrong) the most profitable effective way to deploy those resources.
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Old Jul 25, 2017, 10:51 am
  #48  
 
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Originally Posted by YXUFlyboy
AC has added gobs of new flights and general seat capacity to YYZ, YUL and YVR over the past two years. Alberta has been in a recession and even WS was forced to move 5% capacity east.

Note: I'm not complaining or whining here - I'm asking a business question.
I don't subscribe to the notion that AC is ignoring YYC. By all relevant measures AC should have dehubbed YYC long ago when WS became the 50% traffic winner, I believe that WS is holding steady at 55% of pax.

AC has been upguaging flights with Q400s where as 10 years ago it was mainly 50 seat Dash8 or CRJ. YYZ has 2-3 widebodies per day. The E90s have been taken off both YYC-YYZ and YYC-YUL infavour of A320s with twice the capacity. NRT is now solid performer. LHR and FRA have withstood AC seat densification and larger aircraft.

WS did not follow through with their planned 5% cut, it was only 2-3% cut in Alberta mostly because AC increased capacity on the transcons. WS had to provide a competitive response. Finally most of the WS cuts have come from YMM and YEG, YYC has barely seen a reduction.

With regard to new international destinations. AC made the decision to beef up YYZ and YVR to eat the market before WS could enter the space in a meanigful way. As it stands, WS is attempting to move into TransPac because AC mainline and rouge has soaked up all the capacity. AC's actions have even drawn the notice of USA investment analysts and the US3. It was a great decisions for AC to say "we will take markets 1-2-3 and give you the fourth market".

The dissappointment, in my opinion, has been WS which continues to over fly their hub with nonstop services from YEG/YQR/YXE/YWG etc.
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Old Jul 25, 2017, 11:05 am
  #49  
 
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Let me throw out another suggestion which I haven't seen directly from other posters: there is no premium cabin traffic to support any YYC expansion. I think the paid premium cabin traffic has declined significantly with the death of the oil and gas business in YYC. Both for personal as well as business travel. This is purely an (educated) guess and based on personal observation, but I would bet that paid premium has declined by 50%.
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Old Jul 25, 2017, 11:17 am
  #50  
 
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Originally Posted by YXUFlyboy
Good grief. Can we not have a rational discussion about business decisions on FT? Must everything be whining and complaining? Every time I bring something like this up, I get:

a) Stop whining, you get better service than Yxx (not the point) OR;
b) Why are you asking this question? AC has smart people who know.

The whole point is to discuss the why. Is this too cerebral a topic for you guys?
Maybe you should stop strawman-ing and start responding to the portions of the responses that actually address your core question.

To repeat again, it is fairly clear that AC isn't seeing enough O/D traffic to YYC and isn't seeing enough competition from WS or whomever else on direct routes to offer more direct routes themselves. You can bet that if YYC connecting pax through YVR on to PEK dropped drasticly as a result of a direct YYC-PEK flight from a competitor AC would do something. The blazingly obviously answer, which you keep avoiding, is that they're seeing no impact and don't see the demand and thus aren't adding capacity.

/thread
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Old Jul 25, 2017, 11:20 am
  #51  
 
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Originally Posted by WR Cage
The dissappointment, in my opinion, has been WS which continues to over fly their hub with nonstop services from YEG/YQR/YXE/YWG etc.
What is this so-called "flying over"? In YWG, YXE and YQR, WS has the only nonstop flights to the usual southwest USA sun destinations (PSP, PHX, LAS) plus a smattering of MCO flights. That's a competitive advantage for them versus AC, which forces everyone to connect coming out of the Prairies. Why would they give that up?

The pettiness of western airport competition never ceases to amaze me. Two entire provinces should lose all their nonstop services to beef up YYC?
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Old Jul 25, 2017, 11:23 am
  #52  
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Originally Posted by eigenvector

The pettiness of western airport competition never ceases to amaze me. Two entire provinces should lose all their nonstop services to beef up YYC?
Precisely.
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Old Jul 25, 2017, 11:34 am
  #53  
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Originally Posted by eigenvector
What is this so-called "flying over"? In YWG, YXE and YQR, WS has the only nonstop flights to the usual southwest USA sun destinations (PSP, PHX, LAS) plus a smattering of MCO flights. That's a competitive advantage for them versus AC, which forces everyone to connect coming out of the Prairies. Why would they give that up?
:
Off-topic - but I think WS uses point-to-point services from many Canadian airports as a competitive advantage of capturing more market share from these smaller airports. That's generally their business strategy and it seems to work for them.
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Old Jul 25, 2017, 12:23 pm
  #54  
 
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Originally Posted by ridefar
Let me throw out another suggestion which I haven't seen directly from other posters: there is no premium cabin traffic to support any YYC expansion. I think the paid premium cabin traffic has declined significantly with the death of the oil and gas business in YYC. Both for personal as well as business travel. This is purely an (educated) guess and based on personal observation, but I would bet that paid premium has declined by 50%.
Premium traffic on the LHR, FRA, NRT routes continues to attract pax. Otherwise AC would keep the 789 on FRA (30 J class version 40 on the 77L) and maintain the 763 on NRT. PE class is also driving a significant demand compared to legacy preferred seats.

Originally Posted by eigenvector
What is this so-called "flying over"? In YWG, YXE and YQR, WS has the only nonstop flights to the usual southwest USA sun destinations (PSP, PHX, LAS) plus a smattering of MCO flights. That's a competitive advantage for them versus AC, which forces everyone to connect coming out of the Prairies. Why would they give that up?

The pettiness of western airport competition never ceases to amaze me. Two entire provinces should lose all their nonstop services to beef up YYC?
A couple of years ago I was weekly pax on WS 8am YYC-YEG Monday morning. The aircraft turned to YEG-CUN along with half the pax (about 40-60 people). These pax were flying YYC-YEG-CUN due to capacity issues on the nonstop YYC-CUN.

I also had the opportunity to fly airmiles award (wife account) and the options were LAS-YYC or LAS-YXE-YYC. At the gate 20-30 pax for LAS-YXE had final destination of YYC because the LAS-YYC flight was full.

You flow pax over the hub because there is more margin with multiple daily flights.

Does the YYC-LAS pax want to leave at 8am, 10am, 4pm or 7pm?

(1) If you move the 10am flight to YXE-LAS, the yyc traffic could be lost to a competitor leaving at 9am and doing a connection in DEN, SFO, or SEA because they dont want to be at the airport for 6am to catch the earlier nonstop.
(2) The YXE based pax need to be willing to pay a premium for the nonstop over the one stop services.

Its for these two reasons why Hub overflights rarely work out.
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Old Jul 25, 2017, 4:52 pm
  #55  
 
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Originally Posted by ridefar
Let me throw out another suggestion which I haven't seen directly from other posters: there is no premium cabin traffic to support any YYC expansion. I think the paid premium cabin traffic has declined significantly with the death of the oil and gas business in YYC. Both for personal as well as business travel. This is purely an (educated) guess and based on personal observation, but I would bet that paid premium has declined by 50%.
Agreed. Many of my friends in YYC have kept their jobs, that were formerly frequent fliers (business and/or personal) have had their number of trips cut (lower status for upgrades) and the travel costs cut (less paid J).
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Old Jul 25, 2017, 5:43 pm
  #56  
 
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Originally Posted by CZBB
You do realize that Metro Vancouver has more than double the population of Metro Calgary, right?
No it doesn't
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Old Jul 25, 2017, 6:37 pm
  #57  
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Originally Posted by newcdn
No it doesn't
But it's close. Also, YVR tourist numbers are way higher than YYC, plus YVR has a large cruise ship season, which fill many flights per day.
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Old Jul 25, 2017, 7:16 pm
  #58  
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Originally Posted by Wpgjetse
But it's close. Also, YVR tourist numbers are way higher than YYC, plus YVR has a large cruise ship season, which fill many flights per day.
Vancouver is about 60% bigger than Calgary. Not double.

Yes, we get the local market is going to have more traffic. But the post is around hubs, which implies routing traffic through other places.
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Old Jul 25, 2017, 7:54 pm
  #59  
 
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Originally Posted by YXUFlyboy
It does, and what you describe is what the YYC hub is for AC. But - back to my question - why is that way for AC, but not for WS or other carriers? Why did Hainan add PEK and AM add MEX and AC added nothing? Are they trying to add these routes to funnel Asia traffic thru PEK and South American traffic thru MEX?
what is Hainan to do, fly to Vancouver which is already awash with TPAC traffic, or run a route to YYC with limited competition.

I know I prefer to run my businesses where I have limited competition. Your mileage may vary.
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Old Jul 25, 2017, 9:38 pm
  #60  
 
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Originally Posted by quantumofforce
what is Hainan to do, fly to Vancouver which is already awash with TPAC traffic, or run a route to YYC with limited competition.

I know I prefer to run my businesses where I have limited competition. Your mileage may vary.
Umm... actually Hainan wanted to fly to YVR. But the rules from the Chinese government don't allow it. YYC, whether you like it or not, was sloppy seconds.
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