Topic Author
Posts: 2182
Joined: Tue Jun 29, 1999 11:05 pm

Australian Vs. Canadian Airlines

Sat Sep 04, 1999 5:05 am

With the turmoil in Canada over the Air Canada and Canadian Airlines situation -- AC barely making money, CP losing tons of it -- how are the Australian airlines doing it? How can Qantas and Ansett compete profitably in a market that's even smaller than the Canadian market? Are there lessons to be learned? For example, does Ansett have monopoly routes, etc?

G'day, eh?
Free-thinking, left-leaning secularist
Posts: 584
Joined: Tue Jun 08, 1999 10:28 pm

RE: Australian Vs. Canadian Airlines

Sat Sep 04, 1999 6:53 am

It's not quite the same situation - here in Oz we have both airlines competing fairly much together in almost every market.
In Canada, AC rules the east and CP doesn't seem willing to go in there with any sort of hearted effort to provide a real alternative for Easterners. AN did have a monopoly on intra-WA routes for some years, although that was more because TN didn't want to/couldn't get anything happening over there. The only real monopoly route that AN had that TN/QF never did until recently was to/from Hamilton Island. AN for years had many regional routes operating in various states with airlines it had bought out or created although these days QF has the same sort of regional power as well.
If CP actually offered more than a token service to and between many Eastern ports, then maybe the good citizens would indeed have some sort of choice and would use CP more than they do.
QF is profitable thanks in part to a long campaign now of slash and burn and AN has been barely keeping it's head above waterfor several years, although things appear to have turned there now as well, so it's not quite as rosy as you paint it !
Macair SAAB
Posts: 322
Joined: Sun May 30, 1999 5:35 pm

RE: Australian Vs. Canadian Airlines

Sat Sep 04, 1999 11:20 am

When you look at it, both QF and AN play fair, no trick tactics like in some other markets. The way I see it is that both airlines have a healthy level of domestic passengers, but this is how I think it works..

1) QF has a large international network, as well as a good domestic network, and the International flights are their money earners.
2) AN as a not-so-good international network, but seams (to me) to have a large domestic following, and thata thier bread and butter.

Thats my two cents!

-Macair SAAB


RE: Australian Vs. Canadian Airlines

Sat Sep 04, 1999 12:28 pm

Posts: 2196
Joined: Wed Sep 08, 1999 12:01 pm

RE: Australian Vs. Canadian Airlines

Sat Sep 11, 1999 11:59 pm

The reason any Canadian airline isn't making much money is because of the large distances we have to travel, and the low amount of people to move. An example is YWG-YVR. Both airlines only use a 100 seat plane, (CP, 737-200, AC A319, 118 SEATS) and they don't fill up. It's also a three hour flight minimum, (wind speed etc.). Thats my two cents.

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