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Originally Posted by ACT7
I do think the 'India thing' is a bit of smokescreen sometimes. It's true that the loads are predominantly sub-continent on EK and EY out of YYZ, but it is a low yield market and almost every NA carrier has failed miserably at making a go of it. I could see the 787 making it the most efficient but I still think it's a money losing venture. AI can't even seem to make money on NA and they probably have the lowest cost structure of any airline offering the service. True, they're a mess in general but still.
Either way, YVR won't see AC operate to DEL before YYZ-DEL is fully operational and stable. Remember that AC is having a hard time making Asia work out of YVR and that is a much higher yielding, higher load market for Vancouver.
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Agreed. 787 only reduces a cost of business, but it isn't eliminating the cost entirely.
The North America to India direct scenario is similar to UK/Europe to Australia. It's not that it's not possible to fly direct or via another city between the two destinations, but it's about profitability and margins. Many carriers have been slowly pulling out or reducing its service in the Europe/Australia market because it's just not making that much money. Often times, a business class ticket to Sydney via Singapore from London on BA is not much more expensive than a ticket from London to New York. That's a lot less distance to cover: lower costs, more capacity for other routes. Similarly, North America to India is a pretty long distance, and with that capacity dedicated to these routes, one could probably deploy more service on another shorter route and make more money.
There's a reason why Jet Airways runs all its business from India to North America via Brussels.
Quote:
Originally Posted by LeftCoaster
Pretty surprised the business isn't there considering the amount of Aussies that come up here, the amount of Canadians that go down there and the deep business connections between Vancouver and Australia due to their shared mining focuses.
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Oh there's quite a bit: YVR-SYD is also one of the hardest routes to upgrade with points/eUpgrade certificates on AC. In fact AC is upgrading the capacity to 10 weekly between YVR and SYD for a short duration in the winter season to take advantage of Australians and their Christmas/Summer vacation and the ski season out here in the Northern Hemisphere. NZ is also increasing the flights up to the west coast destinations, including Vancouver.
QF won't fly to YVR, and really I think QFs situation, they've dug themselves a hole they can't fly out of. At one point, they were pondering about purchasing some 777s, but decided to rely on A380s for their long-haul service. Everyone in the airline industry knows that the costs of flying A380s are extremely high (therefore, you have to achieve consistent high load factors), there are only certain routes that can sustain an A380, and they have a limited range compared to the 777s. Look, now QF has to partner with EK because its international division is doing so poorly. Moreover, they've cancelled their order on 787s (only Jetstar is going to take the first few 787s), which really reduces the hope of them flying to YVR.