The US DoJ did precisely that at DCA.photofly wrote:Er, right, but they don't want to. They're very happy serving the airport they built up. What's your point?Porter could launch service from YYZ tomorrow if they wanted to
Are you saying that the TPA should withdraw some of Porter's slots in favour of Westjet? That would make no sense at all.
don't you think it's strange for Westjet to issue a statement to the press without talking to the airport operator? Its just a tactic to put the wind up city council. Nothing more.
AA and US Airways had 65% of the DCA market and that was deemed anti competitive, even with competition available at both IAD and BWI about 40 minutes away, according to Mapquest.
They have been forced to divest numerous slots to competitors to ensure their dominance is kept in check. The US DoJ, at this juncture, will apparently limit bidders to LCC's, recognizing quite correctly that without LCC competition in a market, fares remain artificially high.
One has only to compare fares between Toronto and NYC, where LCC competition is alive and well with WJ in the market, compared to fares between Toronto and Boston, Washington and Chicago to see that the US DoJ has apparently made the correct decision in this matter.
Porter has 85% of the slots at YTZ and according to Mapquest, it's a 37 minute drive between the two airports.
In the US, airports 40 minutes apart are considered distinct markets. In Canada, airports located in, far and away, the nations largest metropolitan area, 37 minutes apart are considered common markets.
Porter's cosy defacto monopoly would not be permitted in the United States. It would be deemed anti-competitive. End of story.
Granted, it's a different jurisdiction with different rules, but there are few north of the border who would suggest that our system has resulted in more competition and therefore lower fares.
At a time when Canadians are tripping over themselves to drive across the border to access low fares that are purportedly the result of a far more competitive playing field, it defies any logic or common sense for any publicly owned airport, let alone an airport located in the downtown core of Canada's largest city, and within spitting distance of the nations largest surface transportation hub, to be dominated to the degree that Porter dominates Billy Bishop airport. The arrangement serves no one but shareholders of a privately held corporation, who, last time they made their numbers known, and even after repeatedly making public claims to the contrary, proved their consistent inability to operate a profitable business, even with an 85% share of the market.
The last verifiable data in 1Q 2010 indicated that Porter's average fare, excluding taxes, was $175.64 over an average flight length of 350 miles. During the same quarter, WestJet's average fare ex taxes was $155.43 over 963 miles. Porter lost $5.9m that quarter. WJ made $13.8m that quarter. See Porter's SEDAR filings and WJ's 1Q 2010 report. It's all there in black and white.
Porter have had seven sheltered years to establish themselves at YTZ. That's plenty long enough. It's time the training wheels were removed and the mollycoddling ended. Canadians demand competitive air service and the resultant low fares. Porter's own fare data clearly proves they haven't delivered. Their monopoly has resulted in a consumer rip off of scandalous proportions. The average WJ flight is 3 times as long as an average Porter flight and WJ's average fare is still LESS than Porters.
If no one else wants to operate at YTZ, that's fine. As it stands, no one seems particularly interested in YXX or YHM, but that could change tomorrow and there's nothing WJ could, or would do about it.
However, if there are airlines that want to provide a competitive service at YTZ and drive fares lower for consumers, then they should be allowed a reasonable allotment slots to be able to do so, together with access to gate facilities at rates consistent with those at other other airports of similar size.
And for the record, WestJet publicly mused on more than one occasion about obtaining slots at LGA and SNA and more recently, they suggested they'd be interested in slots at DCA.
As much as Porter would like to believe its all a big conspiracy to muddy the waters, everything WestJet has done regarding this file is entirely consistent with its MO over the past 17+ years.
WestJet now has a fleet type that can operate into YTZ and has made it clear that fleet type will make an appearance in Central Canada in 2014. Furthermore, there is discussion of the runway being lengthened and jets being permitted there. That will give WJ, and others, the ability to operate jets out of the airport.
WJ is not afraid of competition, having gone head to head with dozens of far larger competitors over their history.
Porter, on the other hand, who are entering their 7th year, still remain deathly afraid of ever having to face any real head to head competitor. They will stop at nothing to ensure their anti-competitive defacto monopoly and high fares remain in place in perpetuity. With this in place, Porter's shareholders hope profits will result, and with profits, an exit strategy, selling their holdings at a substantial profit.
Follow the money. That's what this is all about. The rest is window dressing.
