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I think that Pearson's worst issue is now the inedequate 25 year strategic plan. Sure it's bad now but it'll get worse.
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A little more elbow room would be a good thing, though. I don't know how far off YYZ is from breaking ground on a major expansion, but it feels like they're getting to the point where it's becoming necessary. |
Widebodies at Halifax
After the Halifax to Heathrow flight on a ‘763 ended last spring and the new MAX8 took over that route……Air Canada still retained cargo capacity by doing an A-330-300 turn out of YUL to YHZ each afternoon. That has ended but now the schedule is showing a ‘763 doing YYZ-YHZ-YYZ.
And Condor continues FRA-YHZ-FRA on a ‘767 for the fall. As my ‘333 was landing in Halifax last week I noted Korean Air on the cargo ramp. https://farm2.staticflickr.com/1956/...45f12e21_c.jpg20180924_145327 by ghYHZ, on Flickr https://farm2.staticflickr.com/1952/...89ebf45d_c.jpg20180924_161109 by ghYHZ, on Flickr There’s also been an increase in Cargo flights to China: https://halifaxstanfield.ca/2018/08/...flights-china/ |
Well that was quick...
http://aeronauticsonline.com/primera...or-insolvency/ |
Looks like Primera Air is out of business so a couple of fewer future flights to YUL and YYZ.
https://www.independent.co.uk/travel...-a8563881.html https://www.businessinsider.com/prim...ruptcy-2018-10 |
I feel like so much of the airline business is ego, experience says that most new ventures will fail yet so many start still. How many has Canada lost in just the last couple decades? Canada 3000, Jetsgo, Zip (folded into AC but still, it failed as a separate carrier), Canjet, Harmony, I mean it is pretty delusional for start-ups to think they are that different. And that's just short haul, long haul cheap airlines are just as bad. Zoom, Flyglobespan, Monarch, Primera, they all failed at the same thing, providing no frills cheap service long haul. Seriously wonder which banks ever give financing to these airlines with the industry track record as it is. Air Canada must be kicking up its heels in delight with another trans-Atlantic competitor dead. I have a feeling if Primera stayed around it would've put a dent into yields on the already low Rouge routes ex YYZ
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The legacies are smiling, that's for sure.
WOW Air is next, unless they can secure some financing. https://icelandmonitor.mbl.is/news/n...eks_investors/ Norwegian long haul's financials aren't in the best of shape either. They are supported entirely by the domestic European flying they do (Norwegian Air Shuttle). Like i've said, low cost long haul still hasn't proven itself. Sucks for the consumers though, especially those that bought tickets on Primera. |
Increasing fuel prices, low-yielding passengers (it's not the business elite using these airlines) and rising interest rates will put long-haul low cost in a tight spot. They're doing alright on volume for now, but a recession could be the end of the line for a lot of these carriers.
The idea of low-cost short haul worked because there was a lot of fat in airline operations prior to this innovation. Now, everyone - including the legacy carriers - have squeezed out all the fat and charged for everything they reasonably can. Fuel makes up half of the cost of a long-haul flight. There's simply not much one can do to mitigate that, so variable costs make up a much larger proportion of overall costs. There's also an upper limit to what these airlines can charge their price sensitive customers before they either choose not to fly or fly a regular airline. |
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Good to see Virgin Atlantic are stepping up to help get stranded passengers home. I'm still a little shocked at how quickly Primera went under. I would have guessed they'd at least last a year before finding trans-Atlantic flights are great for the ULCC. |
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Ah yes Oasis, I knew I'd forget a couple lol! It's just baffling to me how every startup airline thinks they will be different, and how they can succeed where no one else did. I know business is about measured risk but come on, if airlines like Primera and WOW which have way more established routes can't even make a go of it, then what chances do others have?
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I'm unfamiliar with AC's service in YUL... but I found this in the schedule and don't remember seeing it... Is this new?
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AC 814 7M8 YUL - BOD |
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https://aircanada.mediaroom.com/2018...-From-Montreal Also, AC summer 2019 mainline tweaks. YUL-PVG/NRT/FRA get upgauged to B789, YUL-FCO gets upgauged to 450 seat 77W. LHR goes from a 789 to A333, decrease of 6 seats. Quote:
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So much for AC waiting on Westjet to announce new routes.
Canada-Austria getting a huge bump. AC takes over YYZ-VIE from OS. Year round B789, daily in the summer, 5x weekly in winter. OS resumes VIE-YUL. Year round B763, daily in the summer, 5x weekly in winter. https://aircanada.mediaroom.com/2018...strias-Capital AC-LH joint venture in full swing. I'll take Austrian over Primera any day of the week ! |
^ Happy to see YUL Asian flights are going well!
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Getting a new tail and new destination is always the goal (either one or the other is good but both is the best). VIE and OS is a great addition, definitely better than Primera, RIP
Regarding BOD, the announcement shows the importance of wording. "Only network carrier offering non-stop transatlantic service from Bordeaux". TS operates seasonal service too and has for years, and its scheduled too, not charter. But adding that "network" makes AC seem more important :) I always wonder how TS does financially, its been around for ages but the rise of WS, Sunwing (for sun spots), and now AC gunning after more European routes must be having some effect behind the scenes with TS |
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AC has always been clever in their wording. As for TS, those A321LRs cant come soon enough. The A310s need to go. A few mechanical issues last month caused several canceled flights. They had to charter some birds last minute. That can't be cheap. As for their financials, they are definately struggling a bit, but are still fighting for their fair share. They announced price hikes for next summer, but it will be tough, with more competition, especially from the LCCs at YUL/YYZ. Pretty sure TS was ecstatic when Primera folded. |
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