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How Does Air Canada Stay In Business?

Tue Mar 27, 2001 12:35 pm

Out of curiosity I decided to check the fare prices of both AC and westjet for the route YLW-YVR. The cost of travaling on westjet is $47 while on a AC F28 the fare is $250. Could someone explain how AC is able to attract passangers with fares that are 4-5 times greater that that of the competiton?
 
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c172akula
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RE: How Does Air Canada Stay In Business?

Tue Mar 27, 2001 12:40 pm

I think AC survives because of their reputation. I know that must sound stupid with the recent view that the media has of AC as the "big mean monopoly". But they give a level of service that is above the no frills flying at westjet. I have yet to be on an AC flight that hasn't had a full meal service, all though I am sure some of the shorter routes don't have it for practical reasons.

Personally I don't like the fact that AC is being labelled as some evil force, if Canadian had aquired AC through the original Onex takeover bid, the same thing would be happening but with the Canadian name.

Just my two cents!  Smile/happy/getting dizzy
 
gmonney
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RE: How Does Air Canada Stay In Business?

Tue Mar 27, 2001 12:41 pm

Easy, Corporate Expense Account....and AC points, Frequent Flyer points don't work with WestJet

Thats just a few thoughts

Grant
Drive it like you stole it!
 
CR-J
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Air Canada Meal Service

Tue Mar 27, 2001 12:47 pm

On very short haul route, practically the Air Canada RapidAir between Toronto,
Montreal and Ottawa, only snacks(pretzels) are offered in flight as well as beverage. If the flight is flew in the morning, a mini size breakfast with scrambbled eggs, sausage and hash brown would be supplied, without the fruit plate.

I choose Air Canada rather than no frills because of the entertainment they offered, the meal and a better seats offered on AC.

Like the trip between Kelowna and Vancouver, whatever aircraft would be capable to fly that distance though. So, I would prefer WestJet rather than Air Canada in your case.
 
yhu
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RE: How Does Air Canada Stay In Business?

Tue Mar 27, 2001 12:47 pm

People who travel on business, paying $1500 per ticket, are not the type to fly Westjet. Those $1500 tickets are what keeps AC going in my view.
 
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c172akula
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RE: How Does Air Canada Stay In Business?

Tue Mar 27, 2001 12:50 pm

I also think the business traveller picks up on the fact that AC has a much more modern and comfortable fleet for travelling. I'd take an A319/20 anyday over the older 737-200's, of course right now you may end up on an old Canadian jet, but that will be remedied in time.
 
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RE: How Does Air Canada Stay In Business?

Tue Mar 27, 2001 1:38 pm

Westjet, can be cheaper, the same price, or more expensive, depending on factors such as fare & booking restrictions. As an example, currently for tomorrow on a day return YLW-YVR-YLW, the fare on AC is $327.42 - but the fare on WJ for the same day & route is actually $278.21 - cheaper yes, but not by that much. If you wish to book reasonably far ahead, and stay a Saturday night (in mid-April for example), the fare on AC is $138.03, while on Westjet it is $154.09.

Westjet has a great product, and is generally an excellent value. Remember though, that it seems every time AC lowers their fares to match a competitor they are accused of anti-competitive behaviour - that doesn't provide much incentive.

 
AgnusBymaster
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RE: How Does Air Canada Stay In Business?

Tue Mar 27, 2001 1:46 pm

On the whole, Air Canada still doesn't have a lot of competition.