YVR Airport & Sea Island Developments Discussion - Page 224

deasine · #**4461** Posted **Jul 3, 2012, 11:40 PM**

Quote:

Originally Posted by twoNeurons

Very True. Leadership should start at the top... and no average employee is going to take a wage freeze/cut lying down if leadership (or lack of) isn't setting the example. It's a disgusting example, in my opinion, of a lack of dedication to the company. These executives are just as replaceable, so you have to question what they bring to the table if they fail at leadership.

I'm not defending the management by any means, and I guess this is entirely subjective, but whether or not they get bonuses I don't think it will improve service on AC... just saying.

The entire airline really needs to be flipped inside out.

Quote:

Originally Posted by twoNeurons

Take JAL's recent rebuild... it seems to be going really well. I haven't looked into it, but knowing Japanese culture and general management style, it wouldn't surprise me if the organizational pay scale in general is more linear than exponential. Also, I bet management set the example and took one for the team with pay cuts or bonuses.

While it's true that Japan has a different culture, in the end they're still the same race (human) and we all have a pretty strong sense of justice and fairness built into us, no matter where we were born. I think those are the lessons we want to learn from... not the lessons of what not to do.

JAL's restructure is probably one of the most amazing in the business. From numbers in the red to high profitability, even reaching the highest operating margins in the industry. Still, despite their profits, their traffic numbers is still nose diving down. And they are in for a lot more challenges: their venture with Jetstar forming Jetstar Japan will undoubtedly affect Japan Airlines Domestic and potentially affect the International traffic. Don't forget competition from other LCCs, AirAsia Japan and Peach.

mezzanine · #**4462** Posted **Jul 4, 2012, 3:54 PM**

Quote:

Originally Posted by twoNeurons

Very True. Leadership should start at the top... and no average employee is going to take a wage freeze/cut lying down if leadership (or lack of) isn't setting the example. It's a disgusting example, in my opinion, of a lack of dedication to the company. These executives are just as replaceable, so you have to question what they bring to the table if they fail at leadership.

I'm no fan of excessive executive pay, but I would also agree that it's a minor issues in AC's problems.

Unfortunately, IMO the issue is similar to GM prior to its restructuring - defined-benefit pension liabilities. Something will give, or AC will declare bankrupcy (again).

Quote:

The company’s pension solvency deficit ballooned in the past year to $4.4-billion, from $2.2-billion – a bad situation made worse by today’s low interest rate environment. If the Montreal-based airline’s defined pension plans were wound up today, Air Canada would be billions short of meeting its obligations to current and future pensioners.

And, unfortunately, it’s not at all clear when, or if, the airline will meet its commitment to workers. The airline hasn’t turned a profit since 2007, and with more retirees than employees (29,000 versus 26,000), the deficit is a millstone that grows heavier every year.

http://www.theglobeandmail.com/report-on...d-is-in-for-a-bumpy-ride/article4384503/

SFUVancouver · #**4463** Posted **Jul 4, 2012, 4:30 PM**

I have what is possibly a naive question. How do pension plans come to be underfunded?

Is it a case of the plans' return on investment failing to match projections?
Is it a case of the business failing to contribute at a rate that will match requirements?
Is it a case of the business deliberately deferring contributions in order to make a quarterly/annual balance sheet look better? If so, why isn't this factored into GAAP reporting?

sacrifice333 · #**4464** Posted **Jul 4, 2012, 4:43 PM**

Quote:

Originally Posted by SFUVancouver

I have what is possibly a naive question. How do pension plans come to be underfunded?

Is it a case of the plans' return on investment failing to match projections?
Is it a case of the business failing to contribute at a rate that will match requirements?
Is it a case of the business deliberately deferring contributions in order to make a quarterly/annual balance sheet look better? If so, why isn't this factored into GAAP reporting?

Can be a lot of reasons...

Underfunding
Underperforming {vs. projections}
People Outliving Projections
Smaller Workforce Funding Pot {vs. Numbers of Past Workers Eligible for Pensions}

mezzanine · #**4465** Posted **Jul 4, 2012, 7:32 PM**

^i'd add on to that:

-AC's move from a highly regulated environment to one with less regulation.
-the effects of the baby boom.
-recent stock upheavals (late 1990s, 2008) and ongoing low interest rates x ~ 10 yrs
- a probable policy on all sides to get smooth labour relations now for a defined-benefit pension to be paid later. To be fair, it seems this was common among other companies and the public sector in the 1960, 70s.

also remember that these are "defined benefit" pensions where the amount retriees gets paid is predetermined by agreements made long ago, regardless of the current economc condiion or the return of the pension's investments. Compare this to say, an RRSP, a defined contruibution plan.

Vanzunator · #**4466** Posted **Jul 6, 2012, 6:34 PM**

It seems for about 6 weeks in W12 Lufthansa will reduce its daily Frankfurt-Vancouver service to 5 weekly (08JAN13 – 13FEB13). In recent years, we only had a capacity reduction from A340-600 to A340-300 for winter months and this is a bit surprising considering the already limited capacity between YVR and Europe.

It seems Toronto and Montreal are also getting similar or even bigger reductions:
http://airlineroute.net/2012/07/02/lh-w12update3/

st7860 · #**4467** Posted **Jul 6, 2012, 8:06 PM**

It makes sense if there's less people flying to Europe from Canada.

DarkVenegance · #**4468** Posted **Jul 6, 2012, 8:07 PM**

Quote:

Originally Posted by Vanzunator

It seems Toronto and Montreal are also getting similar or even bigger reductions:
http://airlineroute.net/2012/07/02/lh-w12update3/

Pure speculation, but seeing the amount of flight reductions in the same timeframe, LH might use this slower travel period to refit the fleet to the new business class seats.

SpongeG · #**4469** Posted **Jul 7, 2012, 5:23 AM**

Lufthansa has cut flights to many cities because of a flight curfew in the city of frankfurt as well as reducing operating costs - cape town lost its frankfurt flights because of this

Quote:

Frankfurt - A ban on night flights at Frankfurt has caused Lufthansa to withdraw its service to Cape Town this winter, the German national airline said on Wednesday.

Imposed eight months ago, a strict ban on flights after 23:00 leaves no leeway when it comes to weather or medical delays and has resulted in over 10 000 passengers being stranded overnight in Frankfurt since the ban took effect, Lufthansa manager Kay Kratky said.

The night flight ban is an extra headache for Lufthansa, which is currently cutting costs to battle low-cost competition and rising fuel prices.

"Cape Town will no longer be served from Frankfurt this winter because we can't leave our passengers stranded," said Kratky, in charge of flight operations at Lufthansa's passenger airlines division.

He cited the example of a plane due to fly to Johannesburg being forced to turn round on the Franfurt tarmac last Thursday night after a problem loading a container.

Instead, the Cape Town flight will be shifted to Munich, which itself has been dealt a blow to expansion plans after a proposed third runway was voted down by residents.

http://www.news24.com/Travel/Flights/Lufthansa-cancels-Cape-Town-flight-20120704-2

Bigtime · #**4470** Posted **Jul 7, 2012, 1:11 PM**

Does the Frankfurt curfew affect the YVR flight? Without looking I would guess no, assuming the arrival and departure times out of FRA would be very similar to the former YYC service.

deasine · #**4471** Posted **Jul 8, 2012, 7:22 AM**

Quote:

Originally Posted by Bigtime

Does the Frankfurt curfew affect the YVR flight? Without looking I would guess no, assuming the arrival and departure times out of FRA would be very similar to the former YYC service.

Not necessarily, but Lufthansa is in the midst of changing their strategy. Lufthansa's planned reduction comes eat a time where the company is flipping themselves inside out to better compete with other carriers.

Frankfurt's curfew (which is incredibly restrictive) is really bothering Lufthansa and I wouldn't be surprised if they start moving many of their flights over to Munich and Berlin (when Tegal closes). They've already been starting, and for good reason really.

whatnext · #**4472** Posted **Jul 8, 2012, 2:51 PM**

Quote:

Originally Posted by Gordon

The AIF had not been increased for 3 or 4 years .

So? It's till too high and a knock on YVR's competitiveness. I also question how its spent. Do visitors remember all the pretty trees and flowers on Grant McConachie Way, or do they remember the bone-rattling condition of its pavement?

st7860 · #**4473** Posted **Jul 8, 2012, 2:59 PM**

The WIFI in the non-secure area of the arrival hall is really really bad.

casper · #**4474** Posted **Jul 8, 2012, 9:38 PM**

Quote:

Originally Posted by whatnext

So? It's till too high and a knock on YVR's competitiveness. I also question how its spent. Do visitors remember all the pretty trees and flowers on Grant McConachie Way, or do they remember the bone-rattling condition of its pavement?

In comparison to most other Canadian Airports it is average.

Link to Airport fees from Airports Air Canada uses: http://www.aircanada.com/shared/en/common/flights/pop_surcharge.html

That said the entire concept of an Airport Improvement Fee is silly. The airport is charging the airline rent and fees for using the building, if the airport needs more money it should rase those; if the airport is getting to greedy the airline has the leverage to negotiate.

Having an AIF fee is smoke and mirrors to make it look like a government imposed tax. The Airline can blame someone else for its cost and does not have to pressure its sub-supplier (the airport) to be competitive.

Gordon · #**4475** Posted **Jul 9, 2012, 4:17 AM**

YVRAA has frozen the fees it charges the airlines for the use of the facilities at 2010 till 2015 levels. The rough pavement on Grant MacLonachie way is their responsibleity the should fix it. The legislation the regulates the airpot authorities could be changed to allow the sled of Bonds like the u.S airports
do when they need to expand.

Hourglass · #**4476** Posted **Jul 9, 2012, 5:23 AM**

Quote:

Originally Posted by whatnext

So? It's till too high and a knock on YVR's competitiveness.

Hardly. In the context of the way commercial aviation works in Canada, other factors other than the AIF act as a drag on YVR's competitiveness. YVR pays the equivalent of 12% of its gross revenues to the federal government as ground rent. Then let's talk about the various fuel, security and other taxes and surcharges and taxes added onto the cost of a plane ticket. No wonder people go down to BLI to fly. No ground rents there. Fuel is cheaper. Airport infrastructure development is subsidized. Not what I'd call a level playing field.

The Canadian government needs to let the aviation sector compete -- instead of regarding it as a cash cow. In fact, the Senate recently published a report on aviation. The title says it all: The Future of Air Travel in Canada: Toll Booth or Spark Plug: http://www.parl.gc.ca/Content/SEN/Committee/411/TRCM/DPK-Air/home-e.htm

Gordon · #**4477** Posted **Jul 9, 2012, 2:21 PM**

The largest single tax item on a trans-boarder ticket is $60 charge from the U.S. Custom & Boarder Services

ground rents.

I can see there being a nominal rent but 12% of gross revenues is excessive considering that YVR is in control of all infrastructure on Sea Island.

If the airport was still under federal control we would have an inferior airport.

bils · #**4478** Posted **Jul 19, 2012, 5:23 PM**

this story starting to pop up in local richmond newspapers too:

http://www.theprovince.com/life/fashion-...a+mall+impact+traffic/6954518/story.html

phesto · #**4479** Posted **Jul 19, 2012, 5:38 PM**

Quote:

Originally Posted by bils

this story starting to pop up in local richmond newspapers too:

http://www.theprovince.com/life/fashion-...a+mall+impact+traffic/6954518/story.html

That councilor is claiming ignorance regarding the YVR outlet mall which has been known publicly for almost two years? I'm embarrassed for him.

Johnny Aussie · #**4480** Posted **Jul 25, 2012, 9:51 AM**

According to a travel publication in Australia, AC increasing YVR-SYD to 10 weekly for the peak winter season. I am a bit surprised actually but good to see it appears to be doing very well. I'll be on it again next week!

Now, too bad those extra flights aren't to Melbourne!

http://www.travelweekly.com.au/travel-today/news/air-canada-ramps-up-ski-services

Edit: flight sched details on airlineroute.net new flights AC35/AC36

http://airlineroute.net/2012/07/25/ac-w12update4