Quote:
Originally Posted by cyeg66
I think YYC can settle into its new role of being in 4th place permanently. Changes in flight scheduling, changes to carriers' business models, changes in interline & alliance relationships, waking up to new economic realities (a big part of them political) going forward, it's my opinion that the best days are behind us. There will still be prosperity, naturally, but the gains will be less significant than that of true international hubs, those that have large population bases AND continue to draw more connecting passenger traffic. This new terminal has done nothing to help matters, unfortunately. What a dog's breakfast. Frankly, Canada would be well served by 2 major international hubs, but there happens to be 3, so growth on that side of the ledger will likely be anemic for the better part of a decade. Without new destinations coming online, growth can only be organic, home grown if you will. Not being a Debbie Downer, just my 2c. 
|
I'm a little more optimistic about the future for YYC.
First of all, Canada has and will always have four hubs in this country. Where the differences breakdown is at the airline level.
- AC has YYZ and YVR as primary hubs with a french hub in YUL. For purposes of this discussion I will consider YYC to be a focus city.
- WS has hubs in YYC and YYZ. The rest are pretty much focus cities.
- TS has hubs at YUL and YYZ.
YYC is a hub in the country context because WS has a hub at YYC.
If we were to apply the country hub definition from Canada to the USA, there would only be hubs where 2 or more of the US3+3 (US3+3 are AA/DL/UA + WN/B6/ and merged AS/VX) are located. Specifically the following cities would be hubs:
- JFK (AA, DL, B6),
- ORD (AA, UA)
- LAX (AA, DL, UA)
- SEA (DL, AS)
- SFO (UA, AS)
- DEN (UA, WN)
- PHX (AA, WN)
EWR, MIA, DFW, ATL*, IAH, MDW, MCO, etc. are all hubs for only one of the major airlines.
* ATL gets an exception as WN has all but announced that ATL is dehubbed. ATL has gone from their largest operation at the time of their merger to barely in 10th largest city.
Secondly, there are paths to victory of 3rd place for YYC. Specifically,
- Anything happens to TS (the airline) and YUL would likely see the pax difference with YYC evaporate overnight. TransAt lost money in 2016 when everyone else made money, that is risk factor that cannot be ignored.
- WS international widebody has a lot more uplift potential for YYC than for other big hubs.
- It is unlikely that WS will ever have a principle hub at YUL. The most optimistic scenario for a WS YUL hub is a purchase of TS (Airline or whole company) by WS. However to improve yields and put TS at the same level of return on invested capital as WS, any takeover scenario would have to contemplate a transfer of aircraft from YUL to the western hub of the merged airline.
- YEG has 1.4 million international and transborder pax. I think that YYC could pick up half that traffic in the coming years and another equal size traunch of domestic traffic from YEG. Between YXE, YQR, and YWG there are 6.5 million pax, I think YYC could net another 500k to 1m pax from these groups. Get another 500k to 1 million from regional prairie and YVR pax and YYC would have an additional 2.5 to 5 million additional pax. These prairie pax would be double counted at YYC due to the inflationary effect of connection traffic vs O&D.
To be clear, there is still a lot work ahead for YYC to regain and solidify the 3rd spot. There are minor but important adjustments to the terminal complex. Customer Service at the airport has to get better. None of the issues are unmanageable or require a large capital investment to fix.
Some perspective on YYC new terminal problems in relation to other airports:
YYZ spent the period from 2004 to 2013 working its way out of financial insolvency despite astronomical airline fees. Even today, while YYZ T1 requires concourse G, its too expensive to build so YYZ must make do with cheaper options to handle the pax and airplane traffic.
DEN had a 2 year delay and ongoing problems for the first 5 years of its operation. Again astronomical fees kept most airlines and pax away.
Berlin Brandenburg is the definition of disastrous terminal development. Want more information, google "Berlin Brandenburg Delay" and curl up with a case of Berliner Weisse (a pale, sour beer common to Berlin area). Once you get into the tale, your face will be as pale and sour as the beer.