Community
Wiki Posts
Search

Prices of J class to Asia

Thread Tools
 
Search this Thread
 
Old Nov 12, 2023, 6:52 am
  #31  
 
Join Date: May 2023
Location: YUL find me in Montreal
Programs: Air Canada SE, Bonvoy Gold, Hotels.com Gold
Posts: 669
Originally Posted by JasonMIA
Whether they speak about it or not (since it's illegal in most markets) it certainly seems to me like the airlines have a tacit agreement to keep fares high. Pure price fixing, cartel behavior, etc.
Whether any of that is true or not, there is at least one completely valid reason why Air Canada is trying to maximize their fares: Debt load.

AC's CFO said that debt repayment is a key priority for them, which is objectively a good thing... the sooner they can get out of the mountain of debt they accumulated during the pandemic, the more they can invest in forward-looking projects like electric planes, plus all the usual business of refreshing the fleet.

Problem is .... that money doesn't come from anywhere except us.
montrealer and ofj like this.
warrens is offline  
Old Nov 12, 2023, 1:37 pm
  #32  
 
Join Date: Jun 2009
Location: YUL
Programs: AC*SEMM
Posts: 602
Originally Posted by Stranger
Except it's not offer and demand. Just a reduction in offer assorted with fare increase that is expected to reduce the demand to the level of the offer.

Actually managed price by the provider, who holds you by the ... Totally managed. No relationship with a market mechanism. Shareholder love it.

Actually to a large extent triggered by the drastic reduction of flights to China.
This is _PRECISELY_ OFFER & DEMAND ... Offer can be managed .. Demand too by tweaking the prices ...
YUL_Around_The_World is offline  
Old Nov 12, 2023, 1:52 pm
  #33  
 
Join Date: Jun 2019
Location: NYC/DC
Programs: AA,SPG, Delta, Amtrak, JB
Posts: 884
Originally Posted by warrens
Whether any of that is true or not, there is at least one completely valid reason why Air Canada is trying to maximize their fares: Debt load.

AC's CFO said that debt repayment is a key priority for them, which is objectively a good thing... the sooner they can get out of the mountain of debt they accumulated during the pandemic, the more they can invest in forward-looking projects like electric planes, plus all the usual business of refreshing the fleet.

Problem is .... that money doesn't come from anywhere except us.
So the CFO's overarching desire is to reduce debt, yet seats are going out empty. Interesting...
AJNEDC is offline  
Old Nov 12, 2023, 2:28 pm
  #34  
FlyerTalk Evangelist
 
Join Date: Jun 2003
Location: YYC
Posts: 23,812
Originally Posted by YUL_Around_The_World
This is _PRECISELY_ OFFER & DEMAND ... Offer can be managed .. Demand too by tweaking the prices ...
If it's managed,especially if, as you said, by one side, it's a case of managed prices, not prices *SET* by a balance between offer and demand, i.e. it's not a market.
In effect, Air Canada controls both the number of seats available and the prices. That's not a market by a standard case of managed prices.
Stranger is offline  
Old Nov 12, 2023, 2:36 pm
  #35  
Suspended
 
Join Date: Jan 2010
Location: YYZ
Programs: AC SE 100K MM; Marriott Lifetime Titanium, Avis Presidents Club
Posts: 1,090
Originally Posted by AJNEDC
So the CFO's overarching desire is to reduce debt, yet seats are going out empty. Interesting...
While there might be empty seats on some flights on any given day, load factors are at historic highs and it seems they are doing a better job than ever at Revenue Management...I fly A LOT and I can't think of the last time I didn't hear the GA's or the FA's announce "we have a completely full flight today"...demand is there.
billdokes is offline  
Old Nov 12, 2023, 2:46 pm
  #36  
 
Join Date: Dec 2022
Posts: 385
Originally Posted by billdokes
I fly A LOT and I can't think of the last time I didn't hear the GA's or the FA's announce "we have a completely full flight today"...demand is there.
I have heard that many times, and EVERY TIME the flight was not actually full, they were close to full, but never actually full. There were about 5-10 empty Y space after the standby list was processed.
On a few flights I took that were actually full (mostly ex-Japan flights), they didn’t actually put that announcement.
JacFlyer is offline  
Old Nov 12, 2023, 10:51 pm
  #37  
Suspended
 
Join Date: Jan 2010
Location: YYZ
Programs: AC SE 100K MM; Marriott Lifetime Titanium, Avis Presidents Club
Posts: 1,090
Originally Posted by JacFlyer
I have heard that many times, and EVERY TIME the flight was not actually full, they were close to full, but never actually full. There were about 5-10 empty Y space after the standby list was processed.
On a few flights I took that were actually full (mostly ex-Japan flights), they didn’t actually put that announcement.
Sure, be pedantic, just because they make that announcement doesn't mean the flight actually winds up at 100%, but the essence of what was being conveyed was "load factors are at historic highs and it seems they are doing a better job than ever at Revenue Management"...so not sure what range of flights you're referencing, but let's say in general terms AC's fleet (mainline) averages ~200 seats per plane, so with 5 - 10 empty Y seats they are operating those flights at a load factor of 95 - 97.5%, which if you look at the historical statistics is incredibly high in the industry.
billdokes is offline  
Old Nov 12, 2023, 10:59 pm
  #38  
 
Join Date: Aug 2014
Location: YYZ
Programs: Ex-Bonvoyed, Hyatt, Hilton, BR, AC, AA
Posts: 1,304
Originally Posted by JacFlyer
I have heard that many times, and EVERY TIME the flight was not actually full, they were close to full, but never actually full. There were about 5-10 empty Y space after the standby list was processed.
On a few flights I took that were actually full (mostly ex-Japan flights), they didn’t actually put that announcement.
They are absolutely sold out, there will always be some number of no shows.
Dave510 is offline  
Old Nov 15, 2023, 9:12 am
  #39  
 
Join Date: May 2023
Location: YUL find me in Montreal
Programs: Air Canada SE, Bonvoy Gold, Hotels.com Gold
Posts: 669
Air Canada just announced some upgauges for routes to Asia starting next month. 787-9 -> 777-300ER in many cases. Should help keep J pricing down a bit longer.

https://media.aircanada.com/2023-11-...iversification
m.y likes this.
warrens is offline  
Old Dec 1, 2023, 7:12 am
  #40  
 
Join Date: Jun 2019
Location: NYC/DC
Programs: AA,SPG, Delta, Amtrak, JB
Posts: 884
Prices are high all over. on AA, I have a trip in J on hold from IAD to MLE for next year. Last night, the hold price was $4,200. Today, the same flights on same day now at $8,620.
I was hoping that prices would fall to <$4,000...

I have been monitoring prices to Japan for sometime now. They are not getting any more reasonable.
AJNEDC is offline  
Old Dec 1, 2023, 9:11 am
  #41  
FlyerTalk Evangelist
 
Join Date: Jun 2003
Location: YYC
Posts: 23,812
Originally Posted by AJNEDC
Prices are high all over. on AA, I have a trip in J on hold from IAD to MLE for next year. Last night, the hold price was $4,200. Today, the same flights on same day now at $8,620.
I was hoping that prices would fall to <$4,000...

I have been monitoring prices to Japan for sometime now. They are not getting any more reasonable.
I paid CAD 4780 last week from YYC to Japan next May. Now up by $500 Still, about the same I paid to ICN last year, but I had probably waited longer to book and I talked to folks who waited and paid nearly the same for economy.

Also got my wife a priority reward, same itinerary, for 121,000 points, nice deal. Has gone up quite a bit since though, almost doubled I believe.
Stranger is offline  
Old Dec 1, 2023, 10:42 am
  #42  
 
Join Date: Jun 2019
Location: NYC/DC
Programs: AA,SPG, Delta, Amtrak, JB
Posts: 884
Originally Posted by Stranger
I paid CAD 4780 last week from YYC to Japan next May. Now up by $500 Still, about the same I paid to ICN last year, but I had probably waited longer to book and I talked to folks who waited and paid nearly the same for economy.

Also got my wife a priority reward, same itinerary, for 121,000 points, nice deal. Has gone up quite a bit since though, almost doubled I believe.
Routing thru Canada is a last resort for me as no one can tell me why I always get the dreaded SSSS for every departure from Canada to the USA, even though I am a US passport holder with TSA pre. But if the fares are materially different, I may consider it.
AJNEDC is offline  
Old Dec 1, 2023, 11:04 am
  #43  
 
Join Date: Apr 2016
Location: YYZ
Programs: TK *G
Posts: 3,099
I have come to terms that the days of low J fares from NA to East Asia is over. I recall back in early 2010, NRT and HKG were considered cheap at $5000, and $7000 was considered normal. PEK was the cheaper one at around $3500-$4000. Then starting from 2015, sub $3000 J fares started to show up. Remember back in 2015 AC still was considered a much more premium carrier on TPAC routes than it is today.

Things change, and there are many reasons behind those sub $3000 J fares back then and why they are no longer available now.
songsc is offline  
Old Dec 1, 2023, 3:21 pm
  #44  
FlyerTalk Evangelist
 
Join Date: Jun 2003
Location: YYC
Posts: 23,812
Originally Posted by songsc

Things change, and there are many reasons behind those sub $3000 J fares back then and why they are no longer available now.
Mainly combination between restrictions on Chinese carriers, plus restricted Russian air space.
YVR Cockroach likes this.
Stranger is offline  
Old Dec 2, 2023, 1:54 am
  #45  
ofj
 
Join Date: Apr 2020
Location: DTW, IST, ESB
Programs: AF/KLM Platinum, Marriott Platinum
Posts: 425
Originally Posted by Stranger
Mainly combination between restrictions on Chinese carriers, plus restricted Russian air space.
technically it's not so much restrictions per se, as the fact that China refuses to join the Open Skies agreement with the USA. I say this as someone who has relatives back in China; I visit every few years. If there were no restrictions on flights, the offerings would satisfy the demand, and we would finally see some more sensible pricing. This applies not just to the mainland, but also to other nearby destinations (which are undoubtedly all affected by this).
ofj is offline  


Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.