Quote:
Originally Posted by MasterG
Wow sounds like quite the facility! Can't wait to try it out myself
Quote:
Originally Posted by Cage
The connections desk is going to kill off international traffic from the rest of Prairies and is competitive on a large scale with YVR.
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Could you explain this comment in bold in a bit more detail? I am ignorant to how airline economics work and why airlines would be attract to YYC over other airports apart from general capacity, landing slots, passenger catchment etc.
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With very few exceptions (and these exceptions are restricted either by distance or government regulation) there is no such concept as an under served route with large number of high yield pax. Basically, people with thousands of dollars to spend can find a way to get from A to B. Therefore the only option for new route development is to concentrate on the low end and middle yield market segments.
A key problem for the prairies outside of YYC (specifically YEG, YQR, YXE, and YWG) is that they have a small number of pax in the middle yield market segment. Therefore the YEG flight needs to attract travelers from other cities in order to be viable. The plentiful options in YYC mean that YEG can only attract low yield pax who are willing to trade inconvenience for reduce price, but mid market pax can be attracted from the other cities because the inconvenience is the same whether YEG or YYC.
YYC new terminal opens and the game is changed. International connection pax can be accomplished in half the time with a better experience. The mid market prairie pax will start to chose YYC over YEG because the price stays the same but the experience is better. This causes the YEG or YWG flight/route to become unprofitable because the mid yield market is too small at the home market.
A real world examples are WS 26/27 (YEG-LGW) and WS 28/29 (YWG-LGW). Both routes require support from YVR and YYC to operate. In WS 26/27 case approximately 30-50% of the pax are coming from YYC. The question for WS network planners, should these two routes continue to exist or should all flights be consolidated at YYC and YVR with the very low end of the segment being unfulfilled (its unprofitable flying). An improved connection process in YYC will keep loyal flyers from transitioning to the competition.
Apply the same logic to the above onto transborder markets out of YEG for WS. Maybe LAS, LAX, and PHX have enough mid market pax willing to pay a premium to fly nonstop. But the other markets it is now more efficient to put pax through YYC and spill the unprofitable segments.