Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR
whywhyzee wrote:They opened up a number of new long haul Rouge routes this summer. In light of BA entering the market and Primera starting out of STN, my guess would be they hedged their bets and elected to use the equipment elsewhere. Losing 1 flight on YYZ-LON is a rain drop in the ocean in any case.
jimbo737 wrote:whywhyzee wrote:They opened up a number of new long haul Rouge routes this summer. In light of BA entering the market and Primera starting out of STN, my guess would be they hedged their bets and elected to use the equipment elsewhere. Losing 1 flight on YYZ-LON is a rain drop in the ocean in any case.
Tactically, I'd agree, but strategically, its a white flag.
They were shoved out of the market by lower cost competition. Rarely has AC ever raised the white flag, esp vs WS, regardless of the cost of fighting a battle, and especially one as strategically vital as on the TATL to their largest international destination.
Then again, with oil doing what it's doing, a lot of routes that looked like genius moves with $40 oil are going to look pretty awful with $74 oil, up 14% over the past 2 weeks.
WS will have converted it's gas guzzling 767 fleet to 787's roughly by this time next year. I'm not sure Rouge will have done the same by then.
But then again, according to AC, Rouge planes are cheap, as are the crews, so, logically, wouldn't low cost Rouge flying stay and expensive mainline flying disappear as overall unit costs start to sky rocket with higher fuel prices?
Thomaas wrote:I think it came down to using limited resources in the most profitable way. Rouge is limited to 25 767s and Air Canada saw more opportunity in the recent additions of Porto, Zagreb and Bucharest than maintaining competing services at 2 London airports. It’s very unlikely they’d make a profit with BA, WestJet and Norwegian on the route.
CS500 wrote:The Rouge product is horrific so I can see why they try to keep them segregated. One YYZ-PHX trip on Rouge was enough for me and I will never fly it again.
CFM565A1 wrote:CS500 wrote:The Rouge product is horrific so I can see why they try to keep them segregated. One YYZ-PHX trip on Rouge was enough for me and I will never fly it again.
So will you take WS? Their product is equally horrific! Who serves potato chips and beef jerky at 6:30am
CS500 wrote:CFM565A1 wrote:CS500 wrote:The Rouge product is horrific so I can see why they try to keep them segregated. One YYZ-PHX trip on Rouge was enough for me and I will never fly it again.
So will you take WS? Their product is equally horrific! Who serves potato chips and beef jerky at 6:30am
Wesjet provides me with enough legroom so that I can sit without my knees touching the seat in front of me. Rouge does not accomplish this.
bTW, the staff was all great at Rouge, it is entirely the on-board hard product which is the problem. 29" pitch with 1990s era seats is not a winning combo...
CS500 wrote:CFM565A1 wrote:CS500 wrote:The Rouge product is horrific so I can see why they try to keep them segregated. One YYZ-PHX trip on Rouge was enough for me and I will never fly it again.
So will you take WS? Their product is equally horrific! Who serves potato chips and beef jerky at 6:30am
Wesjet provides me with enough legroom so that I can sit without my knees touching the seat in front of me. Rouge does not accomplish this.
bTW, the staff was all great at Rouge, it is entirely the on-board hard product which is the problem. 29" pitch with 1990s era seats is not a winning combo...
CrawleyBen wrote:[twoid][/twoid]
I mentioned this in a seperate thread about this the other week. A member of staff I dealt with through my work at Gatwick, confirmed the route had been dropped in favour of Reykjavik (her words not mine). Gatwick has ample capacity from YYZ as it is, as others have already demonstrated in this thread.
Cheers
Ben
CS500 wrote:The Rouge product is horrific so I can see why they try to keep them segregated. One YYZ-PHX trip on Rouge was enough for me and I will never fly it again.
whywhyzee wrote:The WestJet conversion to 787 might actually help Rouge. It shifts WS' focus from competing with Rouge to competing with mainline. Its a completely different market space, which will free up some wiggle room in the lower cost segment.
aerolimani wrote:whywhyzee wrote:The WestJet conversion to 787 might actually help Rouge. It shifts WS' focus from competing with Rouge to competing with mainline. Its a completely different market space, which will free up some wiggle room in the lower cost segment.
Unless WS wants to start offering free first checked bag, free alcohol, and free meals, I don't see how a WS 787 shifts the competitive focus towards mainline AC. Other than being a newer plane, what's the improvement
skipness1E wrote:Flew GLA-YYZ and back with them, legroom was fine but it’s only three weekly high season and was only 2/3 full. IFE was u/s on the way back but I tend to read.
Agree it’s sub par to have both mainline and Rogue to London, they end up cannibalsing their own yields. BA dropping 777 capacity into the LGW will surely have killed yields for WS too.
For me, the major issue is that YYZ T1 intl longhaul is now surely at terminal capcity and feels very claustrophobic for a new build.
CFM565A1 wrote:So will you take WS? Their product is equally horrific! Who serves potato chips and beef jerky at 6:30am
CFM565A1 wrote:Any WS flight I've had the unfortunate luck of going on, my knees have touched the seat ahead and their under-seat room is far worse for carry-ons.
longhauler wrote:Rouge/Gatwick was very popular, with high load factors, but there were a few issues ....
One is that the bottom feeder yields on the route were abysmal. Not only were they less than a third of LHR but also they could get twice the yield by sending the 767 to other European destinations with far greater margins than others are willing to accept.
Another is route confusion. They try to not have Rouge/Mainline fly to the same place as the products are quite different. With all the warnings in the world, when passenger flies YYZ-LHR then LGW-YYZ, it gets hard to explain the lack of IFE screens and free liquor, etc.
It's hardly a "white flag" to WS. In fact, I bet AC hardly even notices WS any more ... I think its more walking away from the route muttering, "Why bother? If the competition wants to chase after yield like that ... go for it".
jimbo737 wrote:I don't recall seeing an announcement of this rather significant strategic cancellation, but Air Canada has quietly withdrawn from Gatwick.
Routings from Canada to Gatwick are mostly via DUB and are not remotely price competitive with even their LHR n/s service.
It would appear Air Canada was unable to make their "low cost" Rouge service viable in that market.
flyyul wrote:jimbo737 wrote:I don't recall seeing an announcement of this rather significant strategic cancellation, but Air Canada has quietly withdrawn from Gatwick.
Routings from Canada to Gatwick are mostly via DUB and are not remotely price competitive with even their LHR n/s service.
It would appear Air Canada was unable to make their "low cost" Rouge service viable in that market.
I'm very curious. What do you make of WestJet's inability to succeed on major markets such as Montreal-Fort Lauderdale (one of the countries large city-pairs), Montreal-Vancouver (winter seasonal suspension) and Ottawa-Edmonton. What about WestJet's withdrawal of Toronto-Sudbury or Montreal-Boston which the much proclaimed WestJet encore.
I think you should also consider that Air Canada doubled down on Heathrow from Vancouver (2x 787-9 vs. 1 777), instead of flying complementary Vancouver-Gatwick (3/week).
aerolimani wrote:whywhyzee wrote:The WestJet conversion to 787 might actually help Rouge. It shifts WS' focus from competing with Rouge to competing with mainline. Its a completely different market space, which will free up some wiggle room in the lower cost segment.
Unless WS wants to start offering free first checked bag, free alcohol, and free meals, I don't see how a WS 787 shifts the competitive focus towards mainline AC. Other than being a newer plane, what's the improvement? I think a Rouge 767 will remain competitive with a WS 787. If anything, people might prefer the 2-3-2 layout of a Rouge 767 versus the 3-3-3 of a WS 787, not to mention the free bag and meals.
One thing that might pull me towards a WS widebody flight, and away from a Rouge one, would be the service. I haven't yet flown on a WS 767, but it wouldn't be hard to beat the Rouge service I've experienced. Last month, I flew ATH - YUL on Rouge. I've never seen more poorly groomed attendants. I felt like I was being served by grumpy teenagers. I didn't observe a single smile. The way they addressed passengers was terrible. No pleasantries like "would you prefer pasta or chicken?" Instead, the attendant looked past me, over my head (at the sidewall?), and muttered only "pasta or chicken."
ACDC8 wrote:aerolimani wrote:whywhyzee wrote:The WestJet conversion to 787 might actually help Rouge. It shifts WS' focus from competing with Rouge to competing with mainline. Its a completely different market space, which will free up some wiggle room in the lower cost segment.
Unless WS wants to start offering free first checked bag, free alcohol, and free meals, I don't see how a WS 787 shifts the competitive focus towards mainline AC. Other than being a newer plane, what's the improvement
Ummm, did you not watch the WS 787 unveiling?
https://www.youtube.com/watch?v=oSQn4QK8QDY&t=3s
BML87 wrote:The WS 787s will at least have seatback TVs.
CS500 wrote:The Rouge product is horrific so I can see why they try to keep them segregated. One YYZ-PHX trip on Rouge was enough for me and I will never fly it again.
ac7e7 wrote:“I was forced to fly Rouge”
“Never again!”
ac7e7 wrote:“I was forced to fly Rouge”
“Never again!”
If that were the case, loads would be abysmal. Rouge planes are full. I was on one this weekend. Yes, the seats are closer together, and no seat back IFE. That is what the market wants. People don’t want to pay top dollar to secondary markets.
Air Canada is not forcing you to do anything. They understand a market can only produce certain yields, and offers a product people are willing to pay for.
People say they prefer to fly Westjet. Go ahead. Westjet is also feeling the pinch, and started Swoop. If you believe that airline is only going to stick airports like Abbotsford, you are sorely mistaken. Eventually, you will find them flying to destinations currently served by Rouge.
This is where the market is going. We can complain about it, but people just don’t care. They want the cheapest ticket possible.
YYZatcboy wrote:ac7e7 wrote:“I was forced to fly Rouge”
“Never again!”
In my case I was because it was a military contract and it included an overseas deployment. If I booked myself on a different airline for the YYC-YHZ segment I would have lost the rest of the PNR including the international flights. So yes I was forced to fly Rouge if I wanted to do my deployment. It was abysmal, and I promptly informed my unit that if I was booked on Rouge again I would cancel any military contract that I had been booked for. I found it to be inhuman, but at 195cm I recognize that my experience is unlike other peoples experience, and what is intolerable to me may be perfectly fine for others. Them running out of food was a whole other story and I felt bad for the crew since 2/3 of the plane were pretty upset about no food for 5 hours over lunch/dinner time. The aft FA's were gracious about letting me share their space during the flight which I appreciated, and we had a great chat about the airline industry, so I will give them props for that.
BML87 wrote:flyyul wrote:jimbo737 wrote:I don't recall seeing an announcement of this rather significant strategic cancellation, but Air Canada has quietly withdrawn from Gatwick.
Routings from Canada to Gatwick are mostly via DUB and are not remotely price competitive with even their LHR n/s service.
It would appear Air Canada was unable to make their "low cost" Rouge service viable in that market.
I'm very curious. What do you make of WestJet's inability to succeed on major markets such as Montreal-Fort Lauderdale (one of the countries large city-pairs), Montreal-Vancouver (winter seasonal suspension) and Ottawa-Edmonton. What about WestJet's withdrawal of Toronto-Sudbury or Montreal-Boston which the much proclaimed WestJet encore.
I think you should also consider that Air Canada doubled down on Heathrow from Vancouver (2x 787-9 vs. 1 777), instead of flying complementary Vancouver-Gatwick (3/week).
WestJet operates YEG-YOW year round.
aerolimani wrote:whywhyzee wrote:The WestJet conversion to 787 might actually help Rouge. It shifts WS' focus from competing with Rouge to competing with mainline. Its a completely different market space, which will free up some wiggle room in the lower cost segment.
Unless WS wants to start offering free first checked bag, free alcohol, and free meals, I don't see how a WS 787 shifts the competitive focus towards mainline AC. Other than being a newer plane, what's the improvement? I think a Rouge 767 will remain competitive with a WS 787. If anything, people might prefer the 2-3-2 layout of a Rouge 767 versus the 3-3-3 of a WS 787, not to mention the free bag and meals.
One thing that might pull me towards a WS widebody flight, and away from a Rouge one, would be the service. I haven't yet flown on a WS 767, but it wouldn't be hard to beat the Rouge service I've experienced. Last month, I flew ATH - YUL on Rouge. I've never seen more poorly groomed attendants. I felt like I was being served by grumpy teenagers. I didn't observe a single smile. The way they addressed passengers was terrible. No pleasantries like "would you prefer pasta or chicken?" Instead, the attendant looked past me, over my head (at the sidewall?), and muttered only "pasta or chicken."
oldannyboy wrote:aerolimani wrote:whywhyzee wrote:The WestJet conversion to 787 might actually help Rouge. It shifts WS' focus from competing with Rouge to competing with mainline. Its a completely different market space, which will free up some wiggle room in the lower cost segment.
Unless WS wants to start offering free first checked bag, free alcohol, and free meals, I don't see how a WS 787 shifts the competitive focus towards mainline AC. Other than being a newer plane, what's the improvement? I think a Rouge 767 will remain competitive with a WS 787. If anything, people might prefer the 2-3-2 layout of a Rouge 767 versus the 3-3-3 of a WS 787, not to mention the free bag and meals.
One thing that might pull me towards a WS widebody flight, and away from a Rouge one, would be the service. I haven't yet flown on a WS 767, but it wouldn't be hard to beat the Rouge service I've experienced. Last month, I flew ATH - YUL on Rouge. I've never seen more poorly groomed attendants. I felt like I was being served by grumpy teenagers. I didn't observe a single smile. The way they addressed passengers was terrible. No pleasantries like "would you prefer pasta or chicken?" Instead, the attendant looked past me, over my head (at the sidewall?), and muttered only "pasta or chicken."
..Cannot really comment on Rouge service standards (never flown them) but I believe the 787 (even at 9-across) is HUGELY more comfortable than a 767... quieter, smoother, more spacious... there's no comparison really. At least, that is the way I feel. I am happy to pay more to fly on a 787 vs a 767 - any day.
oldannyboy wrote:aerolimani wrote:whywhyzee wrote:The WestJet conversion to 787 might actually help Rouge. It shifts WS' focus from competing with Rouge to competing with mainline. Its a completely different market space, which will free up some wiggle room in the lower cost segment.
Unless WS wants to start offering free first checked bag, free alcohol, and free meals, I don't see how a WS 787 shifts the competitive focus towards mainline AC. Other than being a newer plane, what's the improvement? I think a Rouge 767 will remain competitive with a WS 787. If anything, people might prefer the 2-3-2 layout of a Rouge 767 versus the 3-3-3 of a WS 787, not to mention the free bag and meals.
One thing that might pull me towards a WS widebody flight, and away from a Rouge one, would be the service. I haven't yet flown on a WS 767, but it wouldn't be hard to beat the Rouge service I've experienced. Last month, I flew ATH - YUL on Rouge. I've never seen more poorly groomed attendants. I felt like I was being served by grumpy teenagers. I didn't observe a single smile. The way they addressed passengers was terrible. No pleasantries like "would you prefer pasta or chicken?" Instead, the attendant looked past me, over my head (at the sidewall?), and muttered only "pasta or chicken."
..Cannot really comment on Rouge service standards (never flown them) but I believe the 787 (even at 9-across) is HUGELY more comfortable than a 767... quieter, smoother, more spacious... there's no comparison really. At least, that is the way I feel. I am happy to pay more to fly on a 787 vs a 767 - any day.
skipness1E wrote:oldannyboy wrote:aerolimani wrote:Unless WS wants to start offering free first checked bag, free alcohol, and free meals, I don't see how a WS 787 shifts the competitive focus towards mainline AC. Other than being a newer plane, what's the improvement? I think a Rouge 767 will remain competitive with a WS 787. If anything, people might prefer the 2-3-2 layout of a Rouge 767 versus the 3-3-3 of a WS 787, not to mention the free bag and meals.
One thing that might pull me towards a WS widebody flight, and away from a Rouge one, would be the service. I haven't yet flown on a WS 767, but it wouldn't be hard to beat the Rouge service I've experienced. Last month, I flew ATH - YUL on Rouge. I've never seen more poorly groomed attendants. I felt like I was being served by grumpy teenagers. I didn't observe a single smile. The way they addressed passengers was terrible. No pleasantries like "would you prefer pasta or chicken?" Instead, the attendant looked past me, over my head (at the sidewall?), and muttered only "pasta or chicken."
..Cannot really comment on Rouge service standards (never flown them) but I believe the 787 (even at 9-across) is HUGELY more comfortable than a 767... quieter, smoother, more spacious... there's no comparison really. At least, that is the way I feel. I am happy to pay more to fly on a 787 vs a 767 - any day.
Never flown on a BA 787-8 I see. Rouge 763 was FAR more comfortable, and I do mean by some considerable way.
flyyul wrote:BML87 wrote:flyyul wrote:
I'm very curious. What do you make of WestJet's inability to succeed on major markets such as Montreal-Fort Lauderdale (one of the countries large city-pairs), Montreal-Vancouver (winter seasonal suspension) and Ottawa-Edmonton. What about WestJet's withdrawal of Toronto-Sudbury or Montreal-Boston which the much proclaimed WestJet encore.
I think you should also consider that Air Canada doubled down on Heathrow from Vancouver (2x 787-9 vs. 1 777), instead of flying complementary Vancouver-Gatwick (3/week).
WestJet operates YEG-YOW year round.
Not anymore - check westjet.com to see for yourself.
Freshside3 wrote:If I recall correctly, AC also had the same deal last year, out of YVR, with both a Rouge flight to LGW, and the mothership to LHR. And then cancelled the LGW service.
BML87 wrote:flyyul wrote:jimbo737 wrote:I don't recall seeing an announcement of this rather significant strategic cancellation, but Air Canada has quietly withdrawn from Gatwick.
Routings from Canada to Gatwick are mostly via DUB and are not remotely price competitive with even their LHR n/s service.
It would appear Air Canada was unable to make their "low cost" Rouge service viable in that market.
I'm very curious. What do you make of WestJet's inability to succeed on major markets such as Montreal-Fort Lauderdale (one of the countries large city-pairs), Montreal-Vancouver (winter seasonal suspension) and Ottawa-Edmonton. What about WestJet's withdrawal of Toronto-Sudbury or Montreal-Boston which the much proclaimed WestJet encore.
I think you should also consider that Air Canada doubled down on Heathrow from Vancouver (2x 787-9 vs. 1 777), instead of flying complementary Vancouver-Gatwick (3/week).
WestJet operates YEG-YOW year round.
flyyul wrote:jimbo737 wrote:I don't recall seeing an announcement of this rather significant strategic cancellation, but Air Canada has quietly withdrawn from Gatwick.
Routings from Canada to Gatwick are mostly via DUB and are not remotely price competitive with even their LHR n/s service.
It would appear Air Canada was unable to make their "low cost" Rouge service viable in that market.
I'm very curious. What do you make of WestJet's inability to succeed on major markets such as M
ontreal-Fort Lauderdale (one of the countries large city-pairs), Montreal-Vancouver (winter seasonal suspension) and Ottawa-Edmonton. What about WestJet's withdrawal of Toronto-Sudbury or Montreal-Boston which the much proclaimed WestJet encore.
I think you should also consider that Air Canada doubled down on Heathrow from Vancouver (2x 787-9 vs. 1 777), instead of flying complementary Vancouver-Gatwick (3/week).
jimbo737 wrote:flyyul wrote:jimbo737 wrote:I don't recall seeing an announcement of this rather significant strategic cancellation, but Air Canada has quietly withdrawn from Gatwick.
Routings from Canada to Gatwick are mostly via DUB and are not remotely price competitive with even their LHR n/s service.
It would appear Air Canada was unable to make their "low cost" Rouge service viable in that market.
I'm very curious. What do you make of WestJet's inability to succeed on major markets such as M
ontreal-Fort Lauderdale (one of the countries large city-pairs), Montreal-Vancouver (winter seasonal suspension) and Ottawa-Edmonton. What about WestJet's withdrawal of Toronto-Sudbury or Montreal-Boston which the much proclaimed WestJet encore.
I think you should also consider that Air Canada doubled down on Heathrow from Vancouver (2x 787-9 vs. 1 777), instead of flying complementary Vancouver-Gatwick (3/week).
Is there a lower yielding transborder market than Quebec to FLL?
AC has so much excess capacity in the winter, they are running 767’s on a 1,384 mile sector, flooding the market with hyper low yield seats. It’s also a huge burn route for loyalty redemption, adding to its woes.
You’d be very hard pressed to see any of the considerably more profitable US carriers running WB capacity on 3 hour notoriously low yield domestic sectors to Florida, but that helps to explain why AC’s winter margins remain at the rock bottom of the pack.
If you build your church for Easter Sunday, which, in airline context in Canada, is June 1 to Sept 10th, and then a total of about 8 weeks out of the balance of the year, you’ll end up with way too much capacity and doing goofy things to try and utilize excess capacity that should have been made into beer cans 3 years ago the rest of the year.
If WJ can’t make that work even with -800’s and their casm, you can be sure it’s a red ink bath for everyone else.
It’s a good example of how route planning works when one airline assesses profitability using EBIT, and the other, where EBITDAR is the benchmark. Convincing the BoD to bonus on EBITDAR doesn’t hurt either.
When you remove depreciation, amortization and rentals from the equation, everything looks profitable, even with “free airplanes”. News flash: there’s no such thing as “free airplanes”.
jimbo737 wrote:Checking US DoT data in 2017 loads on YUL-FLL were as follows:
Rouge: 85.8%
Sunwing: 82.2%
Transat: 83.3%
WestJet: 82.5%
WestJet's overall trans border loads averaged 84.8% in 2017, compared to 84.5% at Rouge, 79.1% at Transat and 74.9% at Sunwing.
You can imagine just how poor the yields are on YUL-FLL when WJ walked from the market with loads that are within a couple points of their system average trans border loads.
jimbo737 wrote:flyyul wrote:jimbo737 wrote:I don't recall seeing an announcement of this rather significant strategic cancellation, but Air Canada has quietly withdrawn from Gatwick.
Routings from Canada to Gatwick are mostly via DUB and are not remotely price competitive with even their LHR n/s service.
It would appear Air Canada was unable to make their "low cost" Rouge service viable in that market.
I'm very curious. What do you make of WestJet's inability to succeed on major markets such as M
ontreal-Fort Lauderdale (one of the countries large city-pairs), Montreal-Vancouver (winter seasonal suspension) and Ottawa-Edmonton. What about WestJet's withdrawal of Toronto-Sudbury or Montreal-Boston which the much proclaimed WestJet encore.
I think you should also consider that Air Canada doubled down on Heathrow from Vancouver (2x 787-9 vs. 1 777), instead of flying complementary Vancouver-Gatwick (3/week).
Is there a lower yielding transborder market than Quebec to FLL?
AC has so much excess capacity in the winter, they are running 767’s on a 1,384 mile sector, flooding the market with hyper low yield seats. It’s also a huge burn route for loyalty redemption, adding to its woes.
You’d be very hard pressed to see any of the considerably more profitable US carriers running WB capacity on 3 hour notoriously low yield domestic sectors to Florida, but that helps to explain why AC’s winter margins remain at the rock bottom of the pack.
If you build your church for Easter Sunday, which, in airline context in Canada, is June 1 to Sept 10th, and then a total of about 8 weeks out of the balance of the year, you’ll end up with way too much capacity and doing goofy things to try and utilize excess capacity that should have been made into beer cans 3 years ago the rest of the year.
If WJ can’t make that work even with -800’s and their casm, you can be sure it’s a red ink bath for everyone else.
It’s a good example of how route planning works when one airline assesses profitability using EBIT, and the other, where EBITDAR is the benchmark. Convincing the BoD to bonus on EBITDAR doesn’t hurt either.
When you remove depreciation, amortization and rentals from the equation, everything looks profitable, even with “free airplanes”. News flash: there’s no such thing as “free airplanes”.
jimbo737 wrote:flyyul wrote:jimbo737 wrote:I don't recall seeing an announcement of this rather significant strategic cancellation, but Air Canada has quietly withdrawn from Gatwick.
Routings from Canada to Gatwick are mostly via DUB and are not remotely price competitive with even their LHR n/s service.
It would appear Air Canada was unable to make their "low cost" Rouge service viable in that market.
I'm very curious. What do you make of WestJet's inability to succeed on major markets such as M
ontreal-Fort Lauderdale (one of the countries large city-pairs), Montreal-Vancouver (winter seasonal suspension) and Ottawa-Edmonton. What about WestJet's withdrawal of Toronto-Sudbury or Montreal-Boston which the much proclaimed WestJet encore.
I think you should also consider that Air Canada doubled down on Heathrow from Vancouver (2x 787-9 vs. 1 777), instead of flying complementary Vancouver-Gatwick (3/week).
Is there a lower yielding transborder market than Quebec to FLL?
AC has so much excess capacity in the winter, they are running 767’s on a 1,384 mile sector, flooding the market with hyper low yield seats. It’s also a huge burn route for loyalty redemption, adding to its woes.
You’d be very hard pressed to see any of the considerably more profitable US carriers running WB capacity on 3 hour notoriously low yield domestic sectors to Florida, but that helps to explain why AC’s winter margins remain at the rock bottom of the pack.
If you build your church for Easter Sunday, which, in airline context in Canada, is June 1 to Sept 10th, and then a total of about 8 weeks out of the balance of the year, you’ll end up with way too much capacity and doing goofy things to try and utilize excess capacity that should have been made into beer cans 3 years ago the rest of the year.
If WJ can’t make that work even with -800’s and their casm, you can be sure it’s a red ink bath for everyone else.
It’s a good example of how route planning works when one airline assesses profitability using EBIT, and the other, where EBITDAR is the benchmark. Convincing the BoD to bonus on EBITDAR doesn’t hurt either.
When you remove depreciation, amortization and rentals from the equation, everything looks profitable, even with “free airplanes”. News flash: there’s no such thing as “free airplanes”.