Quote:
Originally Posted by LO 044
I posted this on the YEG thread but am curious about your thoughts on the new addition?
1. LH doesn't have small enough aircraft like EW to fly this route. Too many business/first class seats on LH birds so enter EW.
2. LH will not cooperate with Condor anymore for low cost/leisure traffic hence they started their own AC Rouge type flight. Condor has been bought by LO recently.
3. Could this be an AC/LH ploy to squeeze WS leisure/VFR traffic out of YYC? Not sure.
4. Corona virus anyone. Asia traffic will be down this year so why not redeploy to North America-Europe although Italy isn't doing anyone in Europe any favors lately.
As an aside it will be curious to see how the YYC-FCO routing does based on recent news coming out of Italy.
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Theres a few key reasons for why this route even happened so I'm going to share my perspective.
Yes the market for business travellers is very small but the tourism market for Germans visiting the Rockies, YYC and even Montana is HUGE, You can walk through Banff on any given day of they year and I would assure you there are almost as many German tourists as there are Chinese tourists. Germans (mainly between 30-60)
LOVE to see unspoiled wilderness and things like that, hence why Condor operates flights too Whitehorse. The route is purely leisure based from the German side so of course they would shove EW on it instead of LH. Im sure from the Canadian side as well it is based to mainly attract people travelling to Europe for pleasure.
There is no possibility of AC/LH squeezing WS out of the YYC international market. If I'm AC in this situation and I'm watching WS take a strangle hold on the market why would I push them out? YYC is AC's smallest hub by a long shot so I would let them take what they want from the market and maintain and push what I have, Such as FRA. If WS is pushed from the international market at YYC they're going to go straight to their other 2 hubs (YYZ and YVR) with their brand new shine dream liners and begin to snatch up marketshare there.
AC and LH are both Star alliance members and one of the key reasons these alliances work is because it essentially forbids airlines from competing (In negative ways) with each other on routes where one airlines could financially hurt the other. Im sure there was talk between AC and LH before there happened to assure there was enough of a market to be able to handle both airlines and I wouldst be surprised of Condor still does alright on the route as well.