Quote:
Originally Posted by YYCFlier
I'd love to know more about this one. This was a new route for YYC but not YVR. Why couldn't WS make it work from YVR at least? ....
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Quote:
Originally Posted by Acey
It's low yield. Period. Bailing on MEX is not comparable to bailing on a 787 launch destination, IMO.
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We remain under the impression that the cuts to the overall capacity as a result of the money loss are a contributing factor to MEX, and a slight shift in narrowbody strategy.
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The major change that resulted in draw down of MEX, DEN, etc. is the introduction of the Dreamliners and the effect on today's overall group profitability and near term future prospects.
This is all part of transitioning into a global network airline. In thew wide body sense, a new route like YYC-NRT is almost always 10,000,000 year one investment (read operating loss once startup costs are included). This investment excludes all new fleet indoctrination costs, which add 10s of millions more to the expense lines.
Its likely that both MEX and DEN had good long term prospects and were break even in today's environment. But with the costs of starting up Dreamliner routes, all the other services have to be super profitable.
LGW was a unique situation, London from Canada is always profitable. It was the only international route multiple airlines in the 80s. The only other option for WS Dreamliner profitability is to take over mature routes as part of Joint Venture program, and this appears less likely now with AF/KL.