Quote:
Originally Posted by phil235
Not arguing, as this is definitely not my area of expertise, but I've heard multiple times that Pearson is one of the most expensive airports in the world to operate from. Shouldn't that provide an opening for a smaller, less expensive airport like Ottawa?
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Its not that simple. Air Canada, for example doesn't pay landing fees in Toronto. Ottawa cannot compete with that.
So for Air Canada, they can add a new Las Vegas flight from Ottawa, and incur an landing fee expense or just add another daily from Toronto and not pay a landing or gate fee and still fill it up (with lots of people from Ottawa and the bonus of other cities too).
The expense thing for Toronto is heavily talked about but not understood. Pearson now works deals with airlines and has done so for a decade.
Flair's costs went down when they moved from Hamilton to Toronto. The trade off was they had to accept poor flight times and bad gates, but it was cheaper than Hamilton.
Pearson is now heavily variable pricing, want slot at 8AM on a Monday, its expensive, want a 7:30PM on a Saturday they can find you a way to discount.
They also work with airlines who connect to offer better rates to ensure Toronto works as a hub. Other airlines that get no discounts at Pearson still need/want to be in Toronto so you can connect with Air Canada, or other airlines.
Its why other airports need to find ways to be creative and argue against new rules and taxes since all of them just keep pushing traffic to Hubs. Lower a few taxes or ownership rules and a few US airlines may start flying from Ottawa to its hubs. Delta has over 100 a-220 orders, we need to find a way to incentivize them to fly daily to Atlanta for example. We have barriers that keep them out.