Oil costs will kill bargain airlines, Milton says
Apr 15, 2009, 5:09 pm
#121
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From R.O.B.:
"Passengers are witnessing the end of an era of cheap airfares as record-high oil prices erode travel demand and reshape the world's airline industry, says Robert Milton, chief executive officer of Air Canada's parent company."
It occurred to me that maybe Westjet really has more to worry about than AC. They have nothing to offer other than basic transportation, partial TV shows and giggling staff.
Air Canada can offer an experience...big planes, executive class, branded customer lounges (offering access for a fee was a smart loyalty move) and, their logo best defines our nation. Now, if only we could get a giggle or two out of the crew!
If Air Canada wanted to, they could reintroduce full meal service in Y class without too much time and difficulty. Westjet's aircraft would need quite a refit to do that wouldn't they? Perhaps its own XM project?
"Passengers are witnessing the end of an era of cheap airfares as record-high oil prices erode travel demand and reshape the world's airline industry, says Robert Milton, chief executive officer of Air Canada's parent company."
It occurred to me that maybe Westjet really has more to worry about than AC. They have nothing to offer other than basic transportation, partial TV shows and giggling staff.
Air Canada can offer an experience...big planes, executive class, branded customer lounges (offering access for a fee was a smart loyalty move) and, their logo best defines our nation. Now, if only we could get a giggle or two out of the crew!
If Air Canada wanted to, they could reintroduce full meal service in Y class without too much time and difficulty. Westjet's aircraft would need quite a refit to do that wouldn't they? Perhaps its own XM project?
Apr 16, 2009, 8:17 am
#123
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G&M: Southwest Airlines Co. reported a surprisingly large loss in the first quarter as traffic fell in what the CEO called the carrier's toughest revenue environment ever.
The price of oil isn't killing anyone right now. But, now that copper is back on its way up, oil won't be far behind. Soon, we might be in a situation with recession-weakened airlines facing $150 oil. The story isn't over.
The price of oil isn't killing anyone right now. But, now that copper is back on its way up, oil won't be far behind. Soon, we might be in a situation with recession-weakened airlines facing $150 oil. The story isn't over.
Last edited by YVR72; Apr 16, 2009 at 8:22 am
Apr 16, 2009, 11:14 am
#124
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Perhaps their loss can be attributed to the endless $49 seat sales... combined with declining loads. Those two together spell disaster to me! If less people are flying, and paying less, then you are going to lose money!
Apr 16, 2009, 3:44 pm
#125
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G&M: Southwest Airlines Co. reported a surprisingly large loss in the first quarter as traffic fell in what the CEO called the carrier's toughest revenue environment ever.
The price of oil isn't killing anyone right now. But, now that copper is back on its way up, oil won't be far behind. Soon, we might be in a situation with recession-weakened airlines facing $150 oil. The story isn't over.
The price of oil isn't killing anyone right now. But, now that copper is back on its way up, oil won't be far behind. Soon, we might be in a situation with recession-weakened airlines facing $150 oil. The story isn't over.
as the local currency changed faster than they could bake a loaf of bread
Apr 18, 2009, 11:46 am
#129
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Zim has abandoned their currency for at least one year. I don't think there's a plan yet for what happens after that.
Of course, enterprising individuals are selling trillion dollar notes on eBay for about $20 US.
Of course, enterprising individuals are selling trillion dollar notes on eBay for about $20 US.