Yes, from a business point of view, of course Uncle Miltie is on the right track for his company, there is no denying that. He IS doing what any predatory CEO would do to ensure an eventual full market share.
So this is really not surprising, considering AC Vacations has been in full swing for over 20 years.
But there are some here who are calling this new AC leisure venture a "non-issue"?? For who? Certainly NOT the Canadian consumer, in the long run. It doesn't take a rocket scientist to figure out that if AC is successful in its attempt to wipe out TS and SSV, and make no bones about it, that's what he aims to do, then you can call it Zip, you can call it Tango, you can call it whatever the hell you want, but it all adds up to one company. And you think fares will remain stabilized and at their current rates? LOL, ooookay.
Personally, Groupe Transat is a very well run and organized and highly profitable outfit, and it would appear Russ Paysons SSV is as well, so it certainly will not be an easy battle for Miltie in this arena. (sidenote: in my opinion, Russ Payson needs to establish his own tour operator to grow and garner a larger market share. C3 Holidays, Air Transat Holidays, Air Canada Vacations, and even Holidays By Wardair, way back when, are and were highly profitable for the respective carriers). Canadi>n Holidays was profitable for a while, until mismanagement at PWA put an end to that. Many thanks to Rys Eton, Kevin Jenkins and the gang at PWA.
However, what frustrates me is Ottawa's non-response to this. There are those here that feel Ottawa should stay the hell out of it. And, to a certain degree, you are correct. Remember, it was Ottawa's pressure on Miltie to purchase Canadi>n that was set the wheels in motion to bring us (Canadian Air Industry) to where we are today. Of course, mismanagement at CP (PWA) and C3 certainly did not help matters. But, the writing is most certainly on the wall, in respect to the mandate of Miltie and Co.
Then again, I suppose that, in the end, it really is not up to Ottawa, it's up to us. WE have the power, and the CHOICE. Not Miltie, not Collenette. All of us who fly for both business and pleasure will shape the future. WE have to be vigilant in supporting WJ, TS, and SSV. WE have to be determined to DEFINE and SHAPE the market, not to be ruled by it. If there's anything that makes me laugh and scream at the same time, it's the bloody hypocrisy of those who whine about no competition, while waiting to pass through security at Pearson, with an Air Canada boarding pass in their hands. If you have a choice, and wish to see the current carriers survive and flourish in Canada, then BOOK THEM!!!
Anyway, just my thoughts.