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Air Canada, WestJet See Few Woes From US Economy  
User currently offlineLAXintl From United States of America, joined May 2000, 26173 posts, RR: 50
Posted (6 years 9 months 2 weeks 3 hours ago) and read 2712 times:

Things sound peachy up North.

Quote:
Air Canada, WestJet See Few Woes From US Economy
March 19, 2008

Canada's two major airlines said on Tuesday they have yet to see domestic demand for air travel slacken because of the slumping US economy, though fuel costs are a rising concern.

Speaking at a Toronto investment conference, the chief executives of Air Canada and WestJet Airlines said domestic demand for air travel remains robust and there has been little sign so far of the turbulence that has roiled US carriers.

"With fuel the price it is and fares that are going up to cover that... we've been watching very closely to see how that's impacting demand," Montie Brewer, Air Canada's chief executive, said on the Webcast of his presentation. "Thus far, we've not seen any dramatic change in our booking levels even though the fare increases have gone in."

Calgary, Alberta-based WestJet, which has reported record monthly capacity results for better than a year, said it too has not seen its advance bookings decline because of the economy.

With oil prices near USD$110 a barrel, the cost of jet fuel is a concern for both companies, the executives said. The two carriers have been able to pass through some of the costs to customers and the strength of the Canadian dollar has also served to mitigate some of the rise.

Full story;
http://news.airwise.com/story/view/1205886059.html


From the desert to the sea, to all of Southern California
6 replies: All unread, jump to last
 
User currently offlineSLCUT2777 From United States of America, joined Dec 2005, 4138 posts, RR: 9
Reply 1, posted (6 years 9 months 2 weeks 1 hour ago) and read 2562 times:



Quoting LAXintl (Thread starter):
Things sound peachy up North.

There will be somewhat of a delayed effect I suspect. I think AC is somewhat insulated against it since so many of their flights are to international overseas destinations to Latin America, Europe and the Far East, and they have few if any competitors on trans-border routes from their primary hubs to the larger markets south of the 49th. WS is similarly insulated with a strong trans-border market with little competition from YYC.



DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
User currently offlineWildcatYXU From Canada, joined May 2006, 2660 posts, RR: 5
Reply 2, posted (6 years 9 months 2 weeks ago) and read 2551 times:



Quoting SLCUT2777 (Reply 1):
I think AC is somewhat insulated against it since so many of their flights are to international overseas destinations to Latin America

I'd say that domestic routes are doing well too. I flew AC 192 (YVR-YYZ) yesterday. It was upgraded from 763 to 77W and still overbooked by 17 passengers...


User currently offlineConnector4you From Canada, joined May 2001, 933 posts, RR: 2
Reply 3, posted (6 years 9 months 1 week 6 days 23 hours ago) and read 2495 times:



Quoting LAXintl (Thread starter):
"Thus far, we've not seen any dramatic change in our booking levels even though the fare increases have gone in."

After a quick check on AC and WJ domestic fares you've gotta choose one, there is no other option. US's fares went suddenly up and so even that third option is out of reach as of now. So yeah you could certainly tell that the two above are enjoying the time of their lives !


User currently offlineYYZTPA From United States of America, joined Mar 2006, 45 posts, RR: 0
Reply 4, posted (6 years 9 months 1 week 6 days 22 hours ago) and read 2450 times:



Quoting SLCUT2777 (Reply 1):
There will be somewhat of a delayed effect I suspect.

While a downturn in the US economy will have a global effect, US carriers are hurt now by the dual impacts of rising oil and falling $US.

How much change was there in the price of oil between 2000 and 2008 in: $C; Euro; Yen; etc.?

Of course the price has gone up for these currencies but not to the degree it has with the $US. Even though the price of oil is tied to $US, oil producing nations have flexibility in pricing since oil is a global commodity. They have no problem adjusting price to account for the value in Euro or any other strong currency. It is a worldwide market.

Thus the relative strength of foreign carriers compared to the weakness of US carriers.

More questioning needs to be directed as to the weakness of the $US.


User currently offlineLowrider From United States of America, joined Jun 2004, 3220 posts, RR: 10
Reply 5, posted (6 years 9 months 1 week 6 days 22 hours ago) and read 2432 times:

I think the same could be said of almost any foreign carrier where the home economy and currency is in better shape than the US.


Proud OOTSK member
User currently offlineSxf24 From United States of America, joined Aug 2007, 1262 posts, RR: 0
Reply 6, posted (6 years 9 months 1 week 6 days 22 hours ago) and read 2389 times:

To be honest, the US carriers haven't seen any impact on demand yet either. The cut backs are a result of oil prices and anticipation that demand may be impacted.

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