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AC's Auxillary Revenue Strategy  
User currently offlineMOBflyer From United States of America, joined Sep 2007, 1209 posts, RR: 4
Posted (6 years 2 months 2 weeks 2 days 9 hours ago) and read 1900 times:

Can anyone please point me in the right direction regarding AC's auxillary revenue strategy: it's offering differentiation, its effectiveness in bringing in new/more revenue, and how it affects passenger satisfaction?

11 replies: All unread, jump to last
 
User currently offlineOlympus69 From Canada, joined Jun 2002, 1737 posts, RR: 7
Reply 1, posted (6 years 2 months 2 weeks 1 day 13 hours ago) and read 1617 times:

I suspect that the reason you are not getting any replies is that nobody - including me, knows what you mean by
"Auxiliary Revenue Strategy".


User currently offlineWumzi From Canada, joined Mar 2008, 45 posts, RR: 0
Reply 2, posted (6 years 2 months 2 weeks 1 day 12 hours ago) and read 1579 times:

I think he's just asking if AC is thinking of doing anything special to bring in more revenue due to the increased losses caused by rising fuel prices.

Apart from parking older fuel guzzling planes and scrapping non profitable routes, they're probably already doing everything they can to stay afloat.


User currently offlineRobsawatsky From Canada, joined Dec 2003, 597 posts, RR: 0
Reply 3, posted (6 years 2 months 2 weeks 1 day 12 hours ago) and read 1565 times:

No, I think the OP is talking about AC's ancillary revenue strategy in their quarterly report.

What it means is more separate charges for things that are now included in the fare or extras:

- 2nd bag fee
- Talk care of me when the weather or ATC messes up my flight fee
- Choose your seat fee
- anything else they can dream up fee


User currently offlineSebring From Canada, joined exactly 10 years ago today! , 1663 posts, RR: 14
Reply 4, posted (6 years 2 months 2 weeks 1 day 12 hours ago) and read 1548 times:

I suspect, I think, I think. Forget the crystal ball. Perhaps the OP can elaborate on what he is looking for.

User currently offlineMOBflyer From United States of America, joined Sep 2007, 1209 posts, RR: 4
Reply 5, posted (6 years 2 months 2 weeks 1 day 11 hours ago) and read 1502 times:



Quoting Robsawatsky (Reply 3):
No, I think the OP is talking about AC's ancillary revenue strategy in their quarterly report.

That's precisely it.  Smile


User currently offlineCRJ900 From Norway, joined Jun 2004, 2171 posts, RR: 1
Reply 6, posted (6 years 2 months 2 weeks 1 day 10 hours ago) and read 1459 times:
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I think North American carriers should increase the Buy-On-Board concept. I find it ridiculous that sandwiches and salads are only available on flights of 3 hours and such. In Europe you can buy stuff like that on one-hour flights.

How come the flights have to be so long? Are FAs that overworked or is it because every pax takes forever to argue, complain, quibble and bitch about the offering before they finally buy something, hence the extra time is needed to get through the cabin once?  Wink

I flew two 2-hour flights on AC Jazz in January and all they had for sale was unhealthy snacks. One was an early-morning flight and I would have loved a sandwich. I'm sure it would sell and offer lots of ancillary revenue plus give the airlines a few extra brownie points.

How come Jazz revenue is longer included in AC numbers? At the end of the day they are still one company... really.



Come, fly the prevailing winds with me
User currently offlineChrisA330 From Canada, joined Oct 1999, 630 posts, RR: 0
Reply 7, posted (6 years 2 months 2 weeks 1 day 10 hours ago) and read 1438 times:



Quoting CRJ900 (Reply 6):
How come Jazz revenue is longer included in AC numbers? At the end of the day they are still one company... really.

uhhhh - no there are not. Completly seperate companies. They have the same parent company - ACE Aviation, but they only hold a 9.5% interest in Jazz LP and soon to be 0%.


User currently offlineCRJ900 From Norway, joined Jun 2004, 2171 posts, RR: 1
Reply 8, posted (6 years 2 months 2 weeks 1 day 10 hours ago) and read 1426 times:
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Quoting ChrisA330 (Reply 7):
Completly seperate companies. They have the same parent company - ACE Aviation, but they only hold a 9.5% interest in Jazz LP and soon to be 0%.

Really? I didn't know that. But now I do. Thanks  Smile
Does that mean that AC pilots can no longer dictate scope clauses and such for Jazz, so that Jazz can order more CRJ705 and perhaps Q400 and branch out, as in develop their own route network in addition to the AC routes?



Come, fly the prevailing winds with me
User currently offlineFLYACYYZ From Canada, joined Jan 2004, 1914 posts, RR: 12
Reply 9, posted (6 years 2 months 2 weeks 1 day 10 hours ago) and read 1423 times:



Quoting CRJ900 (Reply 6):
I think North American carriers should increase the Buy-On-Board concept. I find it ridiculous that sandwiches and salads are only available on flights of 3 hours and such

It was tried with marginal success on flights such as YYZ/ORD, YYZ/BOS, etc. Sales of perishable items were completely flat. Even snack item sales on these flights are marginal at best.



Above and Beyond
User currently offline9252fly From Canada, joined Sep 2005, 1390 posts, RR: 0
Reply 10, posted (6 years 2 months 2 weeks 1 day 9 hours ago) and read 1384 times:



Quoting CRJ900 (Reply 8):
Does that mean that AC pilots can no longer dictate scope clauses and such for Jazz, so that Jazz can order more CRJ705 and perhaps Q400 and branch out, as in develop their own route network in addition to the AC routes?

99% of Jazz's revenue is derived from the capacity purchase agreement with AC. Think of Jazz as a charter airline supplying aircraft and crew to AC. The AC pilot union has an agreement with the company that limits the use of outside companies to provide lift using the AC flight code domestically,that also includes what type of aircraft can be utilized by Jazz in this case. There is no limit on the size and amount of turbo-prop aircraft,meaning that Jazz could have as many DH4 aircraft they want. The problem is that those same aircraft could only fly for AC as a certain percentage of the overall flying. There is still a scope clause on the size and amount of jet aircraft. That explains why there are so few larger jets in the Jazz fleet. AC handles all the marketing and sales for all the flights Jazz operates on their behalf and Jazz in-turn brands the aircraft and crew to represent AC. It's an arrangement that is very common in the USA with the major airlines. AC dictates through the capacity agreement what type of aircraft it wants flying certain routes while considering it's obligations to any agreement it has with it's own employees. It's likely that if Jazz ever gets the DH4 in it's fleet,it will be because AC bought them for Jazz to operate under the capacity purchase agreement(think of it as AC leasing them to Jazz).


User currently offlineYXD172 From Canada, joined Feb 2008, 449 posts, RR: 0
Reply 11, posted (6 years 2 months 2 weeks 1 day 7 hours ago) and read 1324 times:

I know that's it's stretching the definition of "auxiliary", but just today they added fuel surcharges -- without changing the original prices. $60 each way for flights over 1600 km! CTV link Since they add it to the ticket price at the same time as the taxes, I'd call it auxiliary. The ethics of this aside, it really makes sense, although I would prefer that they just bump up the initial price instead of sneaking it in with the taxes.  duck 

So if anyone here is planning travel in Canada, book with Westjet before they too add the surcharge



Radial engines don't leak oil, they are just marking their territory!
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