Air Canada in Trouble ?? Maybe !!

[toberman]

http://www.thestar.com/business/companies/aircanada/article/975639--air-canada-pilots-cancel-ratification-vote?bn=1

 

And, what's this new low cost airline they're proposing ??

[DanJ]

 

And, what's this new low cost airline they're proposing ??

 

They want to take some of their older A319's and 767's, and start a separate "low-cost carrier", to compete with Air Transat, Westjet and Sunwing on the vacation charter business. They want to be able to move some of their more leisure class/less business class routes to this new carrier and the pilot's union isn't exactly thrilled at the prospects. They've been down this road before with Tango and Zip Airlines, and it didn't work out too well for them.

 

Note that in Canada "low cost carrier" doesn't mean the same thing as in the US, where it generally signifies lower fares. Westjet is a low cost carrier and this simply means their operating costs are lower, not their fares.

[Bramcruiser]

They've been down this road before with Tango and Zip Airlines, and it didn't work out too well for them.

 

Exactly. Much the same way American carriers United and Delta had Ted and Song. I think Air Canada's new venture is already doomed.

 

Either they're Air Canada or they're not!

[FlyerTalker]

Exactly. Much the same way American carriers United and Delta had Ted and Song. I think Air Canada's new venture is already doomed.

 

Either they're Air Canada or they're not!

And don't forget that UA also had Shuttle by United, and DL also had Delta Express. Two attempts at the carrier within a carrier. Plus we had Continental Lite and USAir Metrojet. All were great for consultants, livery designers and uniform manufacturers - lousy for the company running them.

[twoputt.plusone]

I don't see how this will change a whole lot considering it's the high taxes that hike up the airfare. :confused::rolleyes:

[scottbee]

I don't see how this will change a whole lot considering it's the high taxes that hike up the airfare. :confused::rolleyes:

 

It's a bit of a common misconception that the add-ons are all taxes. Air Canada now charge such a steep 'fuel surcharge', that it actually exceeds (on most routes to Europe) the total fuel cost per seat (which can be obtained from their financials; 4.3c/available seat mile).

 

Same thing goes for the 'NAV CANADA SURCHARGE'. AC has always had to pay for navigation services, both in Canada and the other countries they fly to. That $15 fee you pay is often far in excess of the actual total fee charged by NavCanada. (you can see NavCanada's fees on their website, there's a cost calculator).

 

These two items are false advertising.

 

 

As for the other fees, on a return ticket from Canada to the USA, often the American taxes exceed the Canadian ones, as the USA charge quite a hefty price to enter the country by air. (Immigration and Agriculture inspection fees)