Quote:
Originally Posted by Johnny Aussie
I don't think scared is the right term. If Icelandair and KLM have poached enough pax on a relatively small market (YEG-Europe) then it only makes sense if the financial models indicate this route will struggle even in the summer. There are only so many bums to put in those seats and too many seats... The writing is on the wall. AC can make better $$$ by allocating their resources elsewhere where they will have a better chance of filling those seats and hopefully make a few $$$ doing so.
|
The other strategic point to consider is that we are one summer season away from WS 763 hitting the market. If I were AC the strategic response would comprise:
- Mainline 77w, 789, 333 to primary YYZ-Europe markets. Good increase in capacity.
- rouge 763 to secondary yyz-Europe markets, between mainline and rouge plug all holes in YYZ.
- out West focus on yvr and yyc Europe on mainline. Maybe add 2-4 secondary routes to plug remaining holes.
-leave YEG for the taking. An invitation to the number three western Canadian market provides a lot of protection to more important markets like YYZ, yyc, yvr.