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Just thought for April, out of all of our major airports - YOW would see a little bit more traffic. YYJ stats for April are out too - total of 4,261 passengers (99 transborder), which is down 97.3% yoy. I would have expected YOW to have at least triple ours, that's all. I agree with many analysts that business travel will be reduced going forward after the pandemic - companies/agencies are finding that meetings between regional offices are quite effective with Zoom etc (not all but many). |
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I'm curious to see if mainline carriers finally start giving a shit about Y pax now that a massive amount of their J demand has collapsed and won't be back for awhile.
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LH is expanding long haul to 19 destinations in the first half of June. They include FRA-YYZ. Further resumption of long-haul flights is planned for the second half of June.
https://centreforaviation.com/member...chedule-524792 Swiss plans on resuming YUL on July 1. https://www.routesonline.com/news/38...ighlight=swiss Edelweiss has revised YYC resumption to June 7. YVR on June 4. https://www.flyedelweiss.com/EN/aler...d-flights.aspx TAP intends to launch YUL on July 16. https://www.routesonline.com/news/38...air%20portugal All of this is subject to change, obviously. |
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I work for a software company that primarily provides software used to run various aspects of food retail, food distribution and food processing. We are trying to do as much as possible over video conference, but there is always some level of travel. That is especially the case as the food supply chain need to readjust to home delivery at retail, and the shift of product from food services channels into retail channels. I think in banking, energy, pharma, food retail etc. there a large part of the private sector that is considered essential services. Everyone is trying to avoid travel, however its sometimes required. |
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Looking at the OAG changes for the week, looks like Delta is dropping YXE permanently.
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The problem with economy passengers is that there's just no margin in them anymore. Unless you're doing a LCC thing, but COVID kind of makes that model moot. In a lot of cases, it would be cheaper to simply drop the destinations and aggregate business class into fewer flights to bigger hubs. Ironically, this might shift the trend back towards the hub-and-spoke model instead of a point-to-point one. The front of the plane makes the bucks for the airline. The back is just glorified filler. An airplane with a full front and empty back makes the accountants happier than vice-versa. In fact, I think many routes simply exist just because the premium demand makes it worthwhile. |
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Long haul LCC hasn’t been proven yet. Transat and Rouge aren’t LCC’s, at least not price wise, as your still paying 1000$+ fares to fly to Europe. As for Norwegian long haul, they’ve lost money year after year.
LCC’s work on short haul routes with huge demand. The short segments keep your biggest cost, fuel, to a minimum. Making it work on long haul is a difficult task no one has cracked yet. Same reasons why LCC’s will struggle domestically here in canada. 1. Not much demand 2. Not much short haul, as Canada is a big country. 3. Predatory pricing by AC/WS. |
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Single-class LCCs have worked on intra-continent travel. For a couple of hours, people will sit on Ryanair or Spirit or whoever to save a bit of money. Long-haul LCC is very much up for debate as long-haul doesn't have the same ability to save on costs for airlines as short-haul. Utilization of long-haul aircraft is already quite high, the planes themselves are much more expensive, a larger proportion of the cost of the flight is fuel costs (have to keep the plane in the air for many hours) and you need crew changes and whatnot due to duty times. Then there's compliance with foreign regulations, currency issues, etc. etc. Quote:
Something's going to have to give. Either airlines charge economy passengers much more (which will depress demand), or they'll cram more people in (which isn't a solution at this juncture), or airlines will simply stop operating money-losing flights. Especially if they don't have people in business class paying 5-10 times the cost of an economy ticket. |
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1. Demand is very uneven within Canada. Domestic travel peaks in summer and markedly declines in the winter. So, unless you're running a peaker-service, you're probably losing money in the off-months which could be 8-9 months of the year. Also, most domestic travel from Quebec is within Quebec or the neighbouring provinces because of the language barrier, so travel by car is very dominant there. 2. The bulk of domestic flight demand in Canada is concentrated in travel between 3 major regions - Toronto/Montreal corridor, Calgary-Edmonton and Vancouver. Within those regions, one typically travels by land means - with the exception of business flights between Montreal and Toronto. So, there's not a ton of unserved city pairs that a LCC can tap with significant demand. 3. The best route for a new airline in this country is to have an existing one go belly-up. Westjet had Canadian Airlines expire as they rose (nearly giving Air Canada a coronary in the process), so they had a major opening there. Otherwise, both healthy airlines can zealously protect their turf. Since AC and Westjet are both healthy, they can afford to stomp any competition. The best avenues for LCCs in Canada are sun flying, summer Europe travel and skimming some off the top during peak summer domestic season, which is what they are doing now. |
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