How will AC respond to Norwegian if they enter the Canadian market?
#16
Join Date: May 2014
Location: DMV
Posts: 2,092
For Norwegian to truly be cheaper you basically need to take advantage of their promo fares which are priced at Ryanair levels. If you book them 'normally', you'll quickly find they're actually a bit more expensive than the competition once you add even a few basic extras.
#17
Join Date: Apr 2015
Location: YVR
Programs: UA Premier Platinum
Posts: 3,759
One area where I welcome head-to-head competition between AC and ULCCs, even if I'll never actually fly on said ULCC, is one-way pricing. AC has shown that they'll switch to one-way pricing when a direct competitor does it (e.g. WS to LGW) so Norwegian may be able to bring us some much-needed relief in this area.
#18
Join Date: Jul 2008
Location: Vancouver, BC, Canada
Programs: AC*S100K MM, Carlson Gold Elite, Hilton Gold, Fairmont Platinum
Posts: 108
One area where I welcome head-to-head competition between AC and ULCCs, even if I'll never actually fly on said ULCC, is one-way pricing. AC has shown that they'll switch to one-way pricing when a direct competitor does it (e.g. WS to LGW) so Norwegian may be able to bring us some much-needed relief in this area.
#20
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https://www.otc-cta.gc.ca/eng/ruling/2018-a-36
"The applicant indicates that it intends to commence commercial activities in Canada on July 23, 2018, and that it is in the process of obtaining a Canadian aviation document from Transport Canada, which is required to complete the licence application."
"The applicant indicates that it intends to commence commercial activities in Canada on July 23, 2018, and that it is in the process of obtaining a Canadian aviation document from Transport Canada, which is required to complete the licence application."
How will you respond?
#22
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I would not be surprised if AC fares were already low enough... Or they can introduce Y- also to international destinations.
#23
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Programs: AC E50 UA1k 2MM AA EXP Royal Ambassador SPG Platinum
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#24
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Location: Canada
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I'd still like to know how exactly is a Norwegian 787 inferior in Y comfort to the Air Canada Y experience?
#25
Join Date: Aug 2015
Posts: 67
I never said it was. I've never tried the Y product on either carrier's 787. Plenty of previous posters were suggesting that Air Canada has nothing to worry about because Norwegian's offering is not as good -- for whatever reason. My point is that this is largely irrelevant. Canadian carriers don't need to lose any passengers to be negatively impacted by the entrance of new LCC/ULCC competition if they have to lower fares to respond.
Last edited by drgmobile; Mar 8, 2018 at 10:23 am
#26
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And Air Canada certainly has a history of below cost undercutting prices on routes where competition appears, just to drive them out, and then to raise prices again.
#27
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why? Air Canada has been using its duopoly position to cheat Canadians for years, why dont you want AC to have competition to offer a better more competitive product to us?
#29
Join Date: Apr 2000
Posts: 3,125
#30
Join Date: Aug 2015
Posts: 67
Whether that's a good thing or a bad thing would depend on one's perspective. I'm not passing judgement either way. Consumers in markets where they feel fares are too high will surely be pleased. Others who are content with the service they receive may be less pleased.