Quote:
Originally Posted by ST1
One would have to think WS would have at least some part in it. Unless AT was significantly cheaper, it's not likely anyone would use the connector to YYZ for a Europe trip.
Any bets on how long it will take Noflyzone to give a grandiose announce that AT no longer will be doing overseas flights from YYC? 
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A connection at YYZ T3 is quite pleasant provided that TS stays in main terminal and GTAA does not impose a bus or infield terminal operation. For comparatives YYC terminal (pre new international terminal) has a similar footprint to YYZ T3.
AC mainline connection to Rouge at YYZ is what is powering the recent summer seasonal expansion to a dozen European cities. The rouge operation is profitable expansion into TS prime territory for the wide body operations. TS wide body is at 23 aircraft while rouge wide body fleet is 19 smaller aircraft.
Turning attention to the financial state of affairs: AC and WS have improving financial condition while Groupe TransAt is on the ropes. Groupe TransAt has not had a profitable quarter in over one year and the upcoming summer quarter does not look good.
Groupe TransAt has sold off the European package holiday business to turn around the company finances. This will be interesting as the Company is now required under accounting rules to split out European discontinued operations from the Canadian continuing operations. To be revealed in the next quarter financial release, are the Canadian operations profitable or break even. Initial releases suggest that the later is true.
There is a maxim in Canadian aviation circles, "a goose with a lawn chair on its back can make money in the Canadian summer holiday season". By early November we will know if Groupe TransAt can do better than the proverbial goose. If Canadian Ops are unprofitable in q3-2016, expect a major strategic shift by Groupe TransAt or a major shake-up at the executive management ranks.
The best news for Air TransAt (the airline portion of Groupe TransAt) is that WS 763 operational difficulties will likely postpone and further strategic moves by WS for at least the next 18 months. It is near impossible the WS board would give management the go ahead to purchase additional 763s for operational expansion. The WS board might give management the go ahead to buy one 763 for spare parts, but this will not be for operational use.
Additional saving grace for Air TransAt, any strategic move by WS to fix the wide body operation will require a new pilot agreement, further increasing the timeline for WS wide body expansion or replacement.
On the AC Rouge competition front, Air TransAt has continued need for migraine relief because the future is not going to get any easier. AC management is publicly talking about doing another deal with ACPA (pilot union) for rouge expansion. Further AC management is openly discussing the profitability of rogue wide body flying, further indicating that any rouge expansion will be at the wide body space rather than narrow body market. ACPA in the last few years has demonstrated to be the most open to mutually beneficial agreements, the union militant faction has largely retired or been reduced to a small minority of individuals. This signals that a new agreement for additional wide body aircraft is within easy reach for AC management.
With the Air TransAt crystal ball becoming opaque, there is increased probability of a significant disruptive event within the Canadian airline marketplace. This disruptive event would be in the order of an acquisition of Air TransAt by either AC or WS.