That's revenue, not income.

What I'm trying to get at is, is this a service that they could contract out a parking company and focus on running the airport.

That's how it's done at YUL. Indigo manages the parking.

https://ca.parkindigo.com/en

Pearson has been focusing on increasing revenue from the parking to pay for other areas it operates and under its control. What I posted was revenue, for the most part airports do not give up on high revenue areas.

Parking has gone from 120 Million in 2010 to 195 million in 2019. They think they can get to 250 million by 2025. Adding new cars costs them little, this has turned into a major profit center for the airport.

Montreal hires someone to operate parking daily, the airport still keeps the revenue. The airport in Montreal collects close to $100 million a year from parking and wants to increase it. They are putting in large investments to grow that number.

Go through there financials and forecasts, parking is a major component for revenue growth. Airports across the country want to grow non aeronautical revenue - that means parking, shopping, restaurants, services, hotels etc.

https://www.admtl.com/sites/default/...18_ENG_WEB.pdf

Yes. I know.

I actually posted about the 2018 Annual report last month, on May 12, to be precise. I even highlighted the fact that for a third year in a row, YUL ranked first among Canadian airports in per-passenger commercial revenue, for the 12 months ending June 30, 2018.

https://forum.skyscraperpage.com/sho....php?p=8566034

AC extending Qatar Airways leases til end of September. At this rate, I'm not sure if the Max will fly at all this year.

https://www.routesonline.com/news/38...e-to-sep-2019/

Same with Omni to Hawaii.

It's official. AC buying TS. Subject to shareholder and regulatory approval.

https://www.cbc.ca/news/business/air...deal-1.5192056

Let's see how long they keep both brands separate.

I say less than 5 years. Just enough to keep regulators happy, then all promises are forgotten.

You'd think AC has enough on its plate and would avoid distractions like these, but maybe they've forgotten the joy of mergers as the last one went so well.

My concern is that smaller airports (like YQM in Moncton) will lose out because of this merger.

We have many winter destination flights out of Moncton to places like the Dominican Republic, Mexico, Jamaica and Florida served by Air Transat and SunWing. I would be concerned that Air Canada (wedded as it is to the hub and spoke model), will use their newly acquired aircraft to create leisure service based out of Toronto & Montreal exclusively, and that peons in the outer colonies (such as myself) will be expected to use connecting aircraft to get to our winter destinations, rather than having direct flights as we do now.......... :(

Will they heavily compete or codeshare on each others' flights as Star partners?

So long as the MAX is grounded, I don't think AC42/43 return until that's lifted.

Yes. Smaller outstations will be up a creek, but hopefully Sunwing will pick up the slack.

I mostly wonder about the Quebec market. Air Transat is the only real competition there - Westjet is a minor player at best. The incentive to cull flights on which Air Canada and Air Transat compete on out of the Quebec market will be quite strong.

I thought it might have to do with all the airspace closures in the region moreso than the MAX issues, per se.

Damn. Why can't they wetlease from Hawaiian!!!

WS/DL JV approved by Canadian regulators today. Now up to the US DOT.

http://westjet.mediaroom.com/2019-06...-joint-venture

They are likely going to ingegrate AT into their "only Calgary, Vancouver, Montreal and Toronto airports are important, and screw everyone else" model, better known as the Hub and Spoke model, so yes airports like yours will likely get the shaft and have non-stop flights taken away from you.

Is AC going to bring up some old 747's out of the desert to handle the capacity out of Toronto that would be needed if they thought they could get even half the people in smaller cities like yours and mine (London) that have these seasonal direct sun flights to connect through a hub? WestJet and Sunwing will be only too happy to step in and fill that gap I think, especially as Sunwing isn't that shy of bringing in seasonal aircraft from overseas.

If a void is created, other airlines will step in and fill it.

The competition bureau will most likely approve the merger, but not before enforcing several concessions on AC. These might come in terms of route (slot/frequency) concessions.

This is where WS and Sunwing have the most to gain from this merger.

I can see WS opening several TATL/sun routes out of YYZ/YUL, ones where AC will need to concede slots.

Look at all the TATL routes out of YYZ/YUL where only AC and TS operate. Let's see if WS plays its cards right with this. It might be the nudge they needed to finally enter the Quebec market with some decent service to places other than YYZ and YYC.

If I was WS, I would already be lobbying with the competition bureau to make sure these concessions happen.

Correct.

Sun flying out of secondary stations wont be affected too much, as Sunwing is king in that department. If anything, the AC will need to add more sun flying from secondary destinations to better compete, not remove flights.

Look at what AC is doing at YQB. For the first time in decades (or ever, not sure), they will be starting sun routes from YQB next winter. That strategy will continue, and as more Rouge A319/A320/A321s are deployed on domestic runs, this will enable AC to use those very same frames on US/Carribean runs from secondary stations, if the demand is there.

There is a strong incentive for AC to combine TS and Rouge flying in Quebec. Further this enhances Canadian Air Travel market because Canada would get a second fortress hub in YUL. The Quebec tourism market and provincial government will push hard for the feds to approve a full integration of TS into AC.

It will take a minimum 2 years to integrate the two companies. Pilots and FA union contracts will need to be coordinated. Seniority will be an issue, especially with the pilots. Lots of time to rehash old merger discussions about "bottom of the list"; "no bump, no flush"; "new AC pilots careers destroyed by senior TS pilots".

There is also the problem of sorting out YYZ. TS can't be integrated into T1 and AC can't run a hub spread across T1-T3-Infield. For now, keeping TS separate allows for GTAA and AC and other airlines at YYZ to sort themselves out.

In flight product is a third issue to sort out and integrate hard product. TS 333s are 9 across whereas AC 333s are industry standard 8 across. Big seat will have to be improved to Rouge Premium.

5 years is probably too long of a time to integrate.

One thing that won't happen this time, people will still book TS flights and vacation packages with confidence. Back in early 2000; the CP bookings dried up because the public was concerned their CP flights would get cancelled and their money lost to bankruptcy court. My old man was at AC and point person for schedule integration between AC and CP. Overnight implementation of the schedule integration and placing AC code onto CP flights was caused by AC flights being oversold 2 months out while CP flights to same destination at same time had less than 20 pax booked. Migrating from Sabre to Res3 was necessitated by 75% of the pax being sourced from RES3 for CP operated flights.