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"We gotta grow! At any cost! Even if that costs us our profit centre." As if running a solid but unexciting business was simply too boring for management. Porter had a genius model using YTZ and the Q400. They had only nominal competition from Air Canada and has a premium base of customers who liked the convenience of YTZ. Sure, probably not a lot of growth because of the limitations, but it made money. I guess they can bleed the profits from that to spend a pile of money on fancy news jets and fighting with the big boys, but they might just risk killing the golden goose. |
So, these new Embraers that Porter is buying, are they able to fly out of Billy Bishop, or will they have to fly out of Pearson?
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The only way I see this working is if Porter makes a play for Ottawa. They can't run multiple hubs and focus cities all over Air Canada's backyard without consequences. But Ottawa is a bit of a hole with lots of flights from everywhere but no AC or WS hub. And some real unfilled markets. Like YOW-SFO. Would help too if they get some genuine ties to JetBlue and turn B6 hubs into Porter's focus cities for the US.
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Is Porter planning on running shuttles to Pearson from Billy Bishop for their passengers, or would I have to take a bus to Union Station and then then take the Union-Pearson Express to YYZ to make connections? |
who knows. Porter is making the best of the Feds not allowing them to operate out of YTZ with jets.
I wouldn't be surprised if they are hoping to eventually push for jet operations again in the future. |
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The only time a dual hub works is that one serves only origin-and-destination (O/D) passengers and the other acts as the connection hub (think LaGuardia airport versus JFK airport in New York). Porter's operations are too variable in size to really make that work. So, they'll split O/D and connection traffic, making each hub weaker. There's a reason Air Canada only worries about giving Porter nominal competition at Billy Bishop to Montreal and focuses on Pearson. It doesn't want to split its O/D and connecting passengers up, because one needs both to make most airlines work. Montreal-downtown Toronto just has enough premium traffic that makes it work as a single route unto itself. |
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Despite speculation to the contrary Canada is not big enough for three airlines, let alone four. Porter only survived this long because of their tortuous relationship with YTZ. |
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The USA is more than the US3 + WN. There's Frontier, Spirit, Allegiant, etc. + 2 new startups. |
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I recall once using Ottawa as a transfer point in the past, flying to Edmonton from Moncton on Air Canada. |
Hopefully, this is Porter trying to be Canada's JetBlue and not Canada's Southwest.
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Regionals like Nordair, Air BC and Air Ontario never had the kind of fleet Porter envisions. |
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I'm not so optimistic. As private sector growth has flagged in recent years, government and individual households have taken on a lot of debt to keep the music going. |
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C Series does, E2 does …. |
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