Guest

AC Low Cost Latest

Mon Nov 26, 2001 7:33 am

Air Canada has announced that effective January 7, 2002, AC Tango will add new flight between St. John's to Halifax, Halifax to Montreal and Halifax to Ottawa.

Meanwhile, Air Canada has begin to recruitement for their newly established low-cost airline based in Calgary, called "Low Cost Co."

 
akash
Posts: 26
Joined: Wed Dec 13, 2000 6:06 am

RE: AC Low Cost Latest

Mon Nov 26, 2001 7:36 am

It's about time!
Next flight - YYZ-DEL Jul 29
 
Jean Leloup
Posts: 1953
Joined: Fri Apr 06, 2001 10:46 am

RE: AC Low Cost Latest

Mon Nov 26, 2001 7:41 am

about time for what? Air Canada to try some more predatory pricing, fighting brands, and loss-making? I think they already do plenty of that. Now maybe someone can explain something: If the competition bureau had decided that tango was illegal, why is it being allowed to expand, or even to continue operations???
Next flight.... who knows.
 
captaingomes
Posts: 6251
Joined: Tue Feb 13, 2001 1:33 am

RE: AC Low Cost Latest

Mon Nov 26, 2001 7:50 am

I think mainly it was seen as illegal because of Canada 3000, since Tango was directly targetting C3. Now that they are conveniently gone, it isn't illegal anymore! Isn't that wonderful. GRRRRR
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
 
fallingeese
Posts: 2031
Joined: Sat Apr 28, 2001 2:33 pm

RE: AC Low Cost Latest

Mon Nov 26, 2001 7:57 am

I agree Jean Leloup that Air Canada has got to stop being the bully. The reason Tango is still flying Captaingomes said. The LCC will not save Air Canada, will not put them into profitability and will not put more passengers in the empty seats.
Mark McWhirter...Contrails Photography
 
yka
Posts: 723
Joined: Sat Sep 15, 2001 3:00 am

RE: AC Low Cost Latest

Mon Nov 26, 2001 10:20 am

Does anyone know what routes AC Low Cost will serve? Is YKA a contender?
 
Jean Leloup
Posts: 1953
Joined: Fri Apr 06, 2001 10:46 am

RE: AC Low Cost Latest

Mon Nov 26, 2001 10:28 am

Since the admitted idea is to compete with westjet, YKA, I'm guessing that Kamloops is not in the running, which must be doubly frustrating for you. However, woudln't it be interesting if they did serve kamloops? (I mean seeing as how WJ says the airport isn't safe, and such.)
Next flight.... who knows.
 
planeguy
Posts: 313
Joined: Tue Aug 07, 2001 4:42 am

RE: AC Low Cost Latest

Mon Nov 26, 2001 10:39 am

So far it seems that every time a carrier starts an airline-within-an-airline subsidiay it ends up being burned. BA couldn't make a go of "GO", UA shelved the Shuttle and USAir pulled the plug on Metrojet. Ok, so Delta's Express is still around but, correct me if I'm wrong, it has been scaled back. Only time will tell whether AC will go down the same path. My gut feeling is that they won't be able to pull it off.
 
yka
Posts: 723
Joined: Sat Sep 15, 2001 3:00 am

RE: AC Low Cost Latest

Mon Nov 26, 2001 11:01 am

Yeah but to be sucesfull loco needs to serve places not served by WJ. What good will do if they start serving all the places that WJ already does? People will still fly WJ and loco will not suceed.
 
fallingeese
Posts: 2031
Joined: Sat Apr 28, 2001 2:33 pm

RE: AC Low Cost Latest

Mon Nov 26, 2001 11:56 am

If Air Canada is stupid enough to take Westjet on directly than there is no way that they would realize that there are profitable routes Westjet doesn't serve. All of the LCC's routes will compete with Westjet, otherwise what's the point of competing with the mainline system.
Mark McWhirter...Contrails Photography
 
crj-900
Posts: 83
Joined: Tue Jan 23, 2001 12:08 pm

RE: AC Low Cost Latest

Mon Nov 26, 2001 2:54 pm

I’m sorry did I miss something? Tango was responsible for the demise of C3? I realize that AC often abuses its dominant position when, and only when, its found to cut rates below those necessary to generate profits. Tango was not in the skies for a full three days when C3 went under. How are they responsible? They only operate three aircraft at the moment. It’s not like the one-month notice before its launch was enough time to drag away any significant number of C3 pax.
I do have another question for the thrones of Air Canada haters. Do you not continuously complain about a lack of competition? AC’s monopoly of the domestic skies? Air Canada has no current product to offer low cost consumers, right? So then does this not mean that Westjet should have some competition? They currently offer the only low cost product in Canada.
I see no problem with Air Canada bringing some competition to the table. With that said, for this competition to be fare Air Canada must cover there overhead.
Crj-900
 
Jean Leloup
Posts: 1953
Joined: Fri Apr 06, 2001 10:46 am

RE: AC Low Cost Latest

Mon Nov 26, 2001 3:17 pm

Crj-900,
It may not be reasonable to blame C3's demise on Tango, I agree. However, it is a FACT (not an opinion) that the competition commissioner had decided that Tango was illegal, and was aint-competitively aimed at AC. So, althought they were not responsible for the demise of C3; the finding was that they WOULD have contributed to the demise of C3 further down the road, had they not collapsed anyway. Competition is good and the idea of the new LCC being a wholly owned but separate subsidiary (i.e., able to have lower costs) is at least a legal idea because they can compete using realistic fares. But this was not the case with tango, in that they were clearly (in the opinion of the government) selling tickets at below cost to hurt C3. As you know, this makes it a fighting brand and was therefore ILLEGAL. So I disagree with you about Tango and think they should be put to an end so that someone in the East will at least POSSIBLY have a chance to make money, other than AC. The new carrier , though, is another matter. Though I don't expect to be a fan of it, I don't think there's anything unethical about it - yet, and if it's properly and fairly run, then we should welcome it.
Next flight.... who knows.
 
Guest

RE: AC Low Cost Latest

Mon Nov 26, 2001 10:19 pm

Crj-900 wrote: "I see no problem with Air Canada bringing some competition to the table."

But, as already mentioned in the other thread, what is the motivation for launching Zip?

It can't be in order to make a profit. Low-cost subsidiaries of mainline carriers have an abysmally poor success rate -- in fact, none of them have been a clear success. And setting up hubs in Hamilton and Calgary, instead of markets waiting to be developed like Ottawa, Montreal and Halifax, is going to spark a war of attrition from which only one discount carrier will walk away alive.

Competition for profit motives is a fine thing; competition by using a loss-leader to knock off or debilitate a corporate rival is quite another.

 
Allee
Posts: 499
Joined: Sat Jun 12, 1999 5:47 am

RE: AC Low Cost Latest

Tue Nov 27, 2001 1:09 am

I don't see a problem with increased competition. I once was bitter with Air Canada (having growing up loving Canadian Airlines), but have moved on. If Air Canada wants to offer me an airline that has low fares, GREAT! I can fly Air Canada at the same fares as Westjet or C3, but still get the benefits of the Air Canada network (ie. Aeroplan, increased frequency). I am scheduled to fly Air Canada next week YVR-LAX return, and I paid $400 per person. I still think that's too much.


 
CRJ 900
Posts: 545
Joined: Mon Mar 12, 2001 4:41 am

RE: AC Low Cost Latest

Tue Nov 27, 2001 1:17 am

Hey guys the OTHER crj 900 here.....who knows what Robert is doing, i guess now that there is little competition he's decided we have free riegn on the skies. I do agree however that C3 sealed it's own fate with some of their decisions and don't blame AC for that. All's fair in love and war. Good thing is, now all the C3 people can apply for jobs at AC low cost and don't gimme any of that BS that you'd NEVER work for AC. If you luv the industry, luv to fly(especially), you'll do whatever you can to get back into it. It'll be interesting to see who they hire. Even laid off AC employees are not guaranteed jobs, just preferential interview status. Good luck to all.
 
AC_A340
Posts: 2196
Joined: Wed Sep 08, 1999 12:01 pm

RE: AC Low Cost Latest

Tue Nov 27, 2001 4:17 am

Crj-900, I could not agree more with you.