AC 2019 Investor Day
Feb 28, 2019, 7:47 am
#1
Original Poster
Join Date: Mar 2001
Location: Toronto, ON
Programs: AC 75K
Posts: 6,360
AC 2019 Investor Day
AC is hosting their 2019 Investor Day today.
Material is here: https://www.aircanada.com/content/da...ay-Feb2019.pdf
Not much new, but a few interesting points:
Material is here: https://www.aircanada.com/content/da...ay-Feb2019.pdf
Not much new, but a few interesting points:
- International economy meal refresh coming
- Desire to serve Africa from YYZ
- Looks like 5 A321s coming to rouge in 2020 as a result of the regional network changes
Feb 28, 2019, 10:04 am
#4
Join Date: Aug 2014
Location: YQB
Programs: AC SE
Posts: 2,139
Feb 28, 2019, 10:11 am
#5
Join Date: Feb 2013
Location: YVR
Programs: AC*A
Posts: 482
Feb 28, 2019, 10:42 am
#7
Join Date: Dec 2007
Location: Toronto - YYZ
Programs: Aeroplan/Hilton Gold/Marriott Bonvoy Titanium/Accor/Hyatt Gold Passport
Posts: 5,899
AC is hosting their 2019 Investor Day today.
Material is here: https://www.aircanada.com/content/da...ay-Feb2019.pdf
Not much new, but a few interesting points:
Material is here: https://www.aircanada.com/content/da...ay-Feb2019.pdf
Not much new, but a few interesting points:
- International economy meal refresh coming
- Desire to serve Africa from YYZ
- Looks like 5 A321s coming to rouge in 2020 as a result of the regional network changes
Feb 28, 2019, 11:27 am
#9
Join Date: Dec 2002
Posts: 8,001
Feb 28, 2019, 12:17 pm
#10
Join Date: Nov 2017
Posts: 3,359
One of the key things mentioned for their key financial targets 2019-2021 was a discussion of the assumptions made:
I would argue those are very optimistic assumptions to make! A ~2% increase yoy on energy prices seems very low - these artificially low fuel prices can't last forever especially given fossil fuel is getting increasingly more limited. At the same time, the Canadian dollar is correlated to the price of energy. Increase the energy prices and the Canadian dollar will go up (albeit not at same rate as rising energy prices). Finally, the GDP assumption of modest growth is optimistic as well. We've had good times for quite some time and it's unlikely these times will last much longer. There are already some indicators that we're heading in the wrong direction, namely the yield curve is flattening out. What that means is that short term interest rates are about the same as long term interest rates.
That being said, I hope I'm wrong here. The assumptions they are making all work in favour of the ULCCs who don't have the resources to weather such storms. I want my $300 UA K fares back to North America!
-James
I would argue those are very optimistic assumptions to make! A ~2% increase yoy on energy prices seems very low - these artificially low fuel prices can't last forever especially given fossil fuel is getting increasingly more limited. At the same time, the Canadian dollar is correlated to the price of energy. Increase the energy prices and the Canadian dollar will go up (albeit not at same rate as rising energy prices). Finally, the GDP assumption of modest growth is optimistic as well. We've had good times for quite some time and it's unlikely these times will last much longer. There are already some indicators that we're heading in the wrong direction, namely the yield curve is flattening out. What that means is that short term interest rates are about the same as long term interest rates.
That being said, I hope I'm wrong here. The assumptions they are making all work in favour of the ULCCs who don't have the resources to weather such storms. I want my $300 UA K fares back to North America!
-James
Feb 28, 2019, 12:32 pm
#12
Join Date: Sep 2006
Location: YOW
Programs: AC*SEMM, *G, Hilton Diamond, Marriott Gold
Posts: 897
Not too surprised about JNB. Recent discussions with some AC staff indicated that there is a desire from AC to fly to South Africa, but SAA has been very protective of its hubs and not too keen on having AC come in...
Feb 28, 2019, 12:46 pm
#14
Join Date: Sep 2006
Location: YOW
Programs: AC*SEMM, *G, Hilton Diamond, Marriott Gold
Posts: 897
Also, the 737 route map on page 98 is not currently showing any TATL out of YOW. Does not mean it would not happen... but widebodies might still be flying out of YOW after all...
Feb 28, 2019, 12:57 pm
#15
Suspended
Join Date: Aug 2018
Posts: 669
One of the key things mentioned for their key financial targets 2019-2021 was a discussion of the assumptions made:
I would argue those are very optimistic assumptions to make! A ~2% increase yoy on energy prices seems very low - these artificially low fuel prices can't last forever especially given fossil fuel is getting increasingly more limited. At the same time, the Canadian dollar is correlated to the price of energy. Increase the energy prices and the Canadian dollar will go up (albeit not at same rate as rising energy prices). Finally, the GDP assumption of modest growth is optimistic as well. We've had good times for quite some time and it's unlikely these times will last much longer. There are already some indicators that we're heading in the wrong direction, namely the yield curve is flattening out. What that means is that short term interest rates are about the same as long term interest rates.
-James
I would argue those are very optimistic assumptions to make! A ~2% increase yoy on energy prices seems very low - these artificially low fuel prices can't last forever especially given fossil fuel is getting increasingly more limited. At the same time, the Canadian dollar is correlated to the price of energy. Increase the energy prices and the Canadian dollar will go up (albeit not at same rate as rising energy prices). Finally, the GDP assumption of modest growth is optimistic as well. We've had good times for quite some time and it's unlikely these times will last much longer. There are already some indicators that we're heading in the wrong direction, namely the yield curve is flattening out. What that means is that short term interest rates are about the same as long term interest rates.
-James
Last edited by 5mm; Feb 28, 2019 at 1:09 pm