Quote:
Originally Posted by Johnny Aussie
Of course the pandemic is still affecting any rebounds but the AC cuts appear to be the most pronounced.
In contrast of course is Westjet pretty much maintaining capacity - even at YVR they will be at 85% of TB capacity from summer 2019.
|
We are in a new era. Not just because the pandemic is resulting in airlines rebuilding from the ground up, but because of the relative financial state of WS and AC.
WS used to be an "upstart" operating in the more cyclical western part of the country, whilst Air Canada was the big, stable, national carrier. Given this reality, AC maintained competition vs WS in the knowledge that at worst they could keep Westjet from using YYC revenues to become a bigger competitor, and at best grow market share.
Fast forward to 2022. WS is owned by Onex, with financial resources that are essentially unlimited, and AC is suffering the financial carnage of the pandemic. The math has changed for AC. Why fight WS at YYC? No way we can outmuscle them. Best to fall back to 3 hubs to prevent Onex from building a bigger airline.
Threaded Mode