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Rebel
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AC News

Post by Rebel »

Calgary service expanded to provide hourly flights year-round to Vancouver and Edmonton. Beginning July 3, we will be boosting our Calgary frequencies to offer hourly flights, 74 weekday departures and greater convenience for travellers to and from Vancouver and Edmonton year-round. Capitalizing on the flexibility created by our new Embraer regional jets, we are reallocating aircraft to solidify our position as the leading carrier in Calgary with the most daily non-stop flights, the greatest capacity, the only Executive Class service, Aeroplan and conveniently located, dedicated airport gates. “Air Canada and Air Canada Jazz already have the most flights of any carrier to and from Calgary. With these schedule enhancements, made possible by the recent addition of Embraer 175s and 190s to our fleet, we are responding to increasingly strong market demand. We are giving our business and leisure travellers unrivalled choice and flexibility when flying these busy routes or connecting with our extensive selection of other North American and international destinations,” said Ben Smith, Vice President, Network Planning. “For even greater convenience, passengers on these routes can use flight passes from our expanding family of multi-trip pass products, which give customers more freedom and options for travel while saving money.”

North America Passes, including the Canada West Pass specifically for western Canada, are available in sizes of 10 or 20 flight credits. Valid for a year, these passes include free changes or cancellations, free advance seat selection, free upgrades within 24 hours for Latitude level passes, and the ability to earn 100 per cent Aeroplan Status Miles.
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...
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Post by ... »

I believe in free enterprise and progressive competition.

This announcement is nothing but blatant bullying by muscling out the competition at its own substantial profit loss for an unknown time period to cripple an otherwise financially healthy competitor on their home turf.

In the same breath, I’m not impressed by what Westjet’s past maneuvers to gain market share.

However, Air Canada is on a mission to spread the message. At full health and all cylinders firing, it’s going to be a slaughter.

…and in the end…when all is said and done and Westjet is curled up in the fetal position in some remote corner of Alberta…and Air Canada is licking their wounds from battle…someone will have to pay for this war. That someone is the consumer.

If you travel a lot in the YYC area…do us all a favor, try to split your business between WJ & AC. Otherwise the outcome will result in a monopoly and high fare prices again, hence the collapse of free enterprise and progressive, fare, competition.

It’s going to be interesting to watch.
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Canus Chinookus
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Post by Canus Chinookus »

oh, my dear Birdog, you assume SOOOO much! :D
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Schlem
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Post by Schlem »

All that extra service but you still have to pay for a blanky when you're cold... :roll:
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tonysoprano
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Post by tonysoprano »

Bird.
I wouldn't worry about a full out slaughter. WJ are big boys now and I'm sure they can handle anything west of yyz. Healthy competition is good.
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Rebel
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Post by Rebel »

I am Birddog

Do you really believe the consumer gives a rat’s ass about either carrier? Let me assure you the consumer is only interested in traveling at the cheapest fare with the most convenience schedule and the freest goodies...

There is also an interesting article in the Globe titled “WestJet lays down the law on staff conduct Espionage is out; protecting data is in” by BRENT JANG. I suspect the new WJ code of ethics is the result of the up coming court case obviously hoping the court will take it into consideration.

No one can ever claim Canadian aviation isn’t interesting..
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...
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Post by ... »

Rebel wrote:I am Birddog

Do you really believe the consumer gives a rat’s ass about either carrier? Let me assure you the consumer is only interested in traveling at the cheapest fare with the most convenience schedule and the freest goodies...
Dearest Rebel,

After spending 16 months on a picket line during an aviation labour dispute...I know all too well that the consumer does not give a rats ass about anyone or anything except lower fares. Jetsgo proved that. People put themselves in harms way...even Transport seemed to turn a blind eye...or worse, too cowardly to make a move.

I just hate seeing the 'suits' put some of our own out of work with cut throat measures with agressive 'competition' campaigns.

Oh well...what the phuque do I know about anything?
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RB-211
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Post by RB-211 »

AC is clearly trying to dig in to a quickly growing western market. Fact is the west is still WJ territory. With WJ likely linking up with the likes of Cathay, BA and AA in the very near future, it is not surprising AC is making an effort to grab market share. Once WJ is involved with OneWorld the game changes. Watch this space...............

Speaking of BA and CX. Why does AC not work on its international product where the real money is and take on someone its own size? Successful long haul programme = $$$$$$$$$$$$. When are they going to learn......
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tonysoprano
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Post by tonysoprano »

I just would like to remind all the kids here that AC was well established out west well before Bedoe became a cowboy from Britain. Even the well established CP proved to be no match in the end. Sorry. Apparantly it even made the news back in the day.
RB...
Concetrate on the overseas stuff? Yep we're doing that very well too. I invite any sceptics to read the latest Air Transport World magazine which has dedicated a few pages to the success of AC in these troubling times for airlines. It's pretty enlightening.
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Last edited by tonysoprano on Thu Mar 30, 2006 4:38 pm, edited 1 time in total.
RB-211
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Post by RB-211 »

What?
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tonysoprano
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Post by tonysoprano »

tonysoprano wrote:I just would like to remind all the kids here that AC was well established out west well before Bedoe became a cowboy from Britain. Even the well established CP proved to be no match in the end. Sorry. Apparantly it even made the news back in the day.
RB...
Concetrate on the overseas stuff? Yep we're doing that very well too. I invite any sceptics to read the latest Air Transport World magazine which has dedicated a few pages to the success of AC in these troubling times for airlines. It's pretty enlightening.
How's that?
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qwert
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Post by qwert »

What?
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Post by qwert »

What?
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Post by qwert »

What?
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North of You
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Post by North of You »

Who what??
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boeingboy
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Post by boeingboy »

Why does AC not work on its international product
Concetrate on the overseas stuff? Yep we're doing that very well too. I invite any sceptics to read the latest Air Transport World magazine which has dedicated a few pages to the success of AC in these troubling times for airlines. It's pretty enlightening.

Why don't they try to orginize their own house first. It amazes me they still can't settle the pilot senority thing after how many years???
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tonysoprano
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Post by tonysoprano »

That's not management's problem. That's a union problem. AC is doing fine financially and operationally. Judging by what you say, you don't work there and having no clue of what goes on at AC, it's probably just best not to offer an opinion.
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Post by cockpit_cowboy »

:?:
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gr8gazu
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Post by gr8gazu »

tonysoprano wrote:I just would like to remind all the kids here that AC was well established out west well before Bedoe became a cowboy from Britain. Even the well established CP proved to be no match in the end. Sorry. Apparantly it even made the news back in the day.
RB...
Actually, CP did very well against the Crown Corporation called Air Canada. Both airlines suffered through the very regulated industry it was at the time, but one had the pocketbook support of the Canadian people thus lacked financial accountability(AC in case you weren't around).

The amalgamation of several financially weak airlines formed Canadian Airlines which was owned by PWA corporation. The nail in the coffin was a weak economy and the untimely purchase of cash strapped Wardair.

Before you claim the financial succes of Air Canada, lets not forget the recent history of bankruptcy and restructuring, again a cost beared by the tax paying public and their creditors. Westjet has flourished in the post 9-11 world and has a realistic business model. Air Canada is not producing enormous profits even in the best of times here so the future will be interesting to watch.

Ticket wars have always been an Air Canada MO to weaken competitors and attempt to gain market share but they have always had detrimental long term effects on the industry. History will repeat itself as long as preditory pricing continues. Maybe we should reinstate the CTC and re-regulate the industry :?

I'll take the "cowboy from Britain" as a businessman any day over the clown in Montreal. No, I have no affiliation with either other than the fact that one has squandered my tax money and weakend the industry since it's inception.
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arewethereyet
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Post by arewethereyet »

How easy we forget. Doesnt Westjet fly to Hawaii? Seems to me that the world is now fair ground. Poor Westjet has a bit-a competition on their so called home turf. I think Air Canada also flew out of Calgary before the better part of Westjet was running down its fathers leg!
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Post by tonysoprano »

gr8gazu.
If I recall, the former Canadian got quite a bit of governrment "assistance" as well to keep it open for business untill it couldn't do it anymore so they got AC pump money in it and save the thousands of jobs. AC had been a free enterprise since 1988, well before the real battle began and was not privy to tax payer money from that point. Between 1988 (?) and 2001 the two competed fiercely and if I recall, Canadian got some governrment money which AC was not priveledged to have, probably because it never came close to the brink. I suggest that if Canadian had stuck to running an airline instead of buying up airlines it might still be around today.
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Post by 55+ »

tonysoprano wrote:gr8gazu.
If I recall, the former Canadian got quite a bit of governrment "assistance" as well to keep it open for business untill it couldn't do it anymore so they got AC pump money in it and save the thousands of jobs. AC had been a free enterprise since 1988, well before the real battle began and was not privy to tax payer money from that point. Between 1988 (?) and 2001 the two competed fiercely and if I recall, Canadian got some governrment money which AC was not priveledged to have, probably because it never came close to the brink. I suggest that if Canadian had stuck to running an airline instead of buying up airlines it might still be around today.
I believe you have it right.......... :wink:
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gr8gazu
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Post by gr8gazu »

TS, Insert the words "Air Canada" everywhere you used "Canadian" in your arguement. That is also true. The funds allocated to Canadian were a pittens compared to those forked out to AC. It was "too little, too late" and at the time was referred to as an equity payment with aknowledgement that the former AC policies had place Canadian at a fiscal disadvantage.

Either way, both companies have failed, as a case for the commercial viability and success of AC cannot be made.
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Post by gelbisch »

OK OK... I know it's petty to point such things out... but, "pittens"?????

:lol:
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Post by ecamaction320 »

Please, please, please read the following:

THOSE ARE THE FACTS........nothing else matters!!!!


Setting the financial record straight
BY FRED GASPAR
When Air Canada was privatized, did the federal government forgive the airline’s debt? It’s a rumour that persists,
even though the facts show otherwise. Below is a summary of Air Canada’s financial history with the federal government
– to set the record straight.

1937 – 1988:
A Crown Corporation
? From its inception in 1937 as Trans-Canada Airlines to 1962, Air Canada received government subsidies totaling $25.6 million. These subsidies were provided to cover shortfalls in the company’s operating surplus account.
? During those same years, the airline generated operating surpluses of $11.2 million, all of which were returned to the government. ? From 1963 to 1988 the company returned $105.7 million to the federal government in the form of dividends and retained earnings.? Over the course of history as a crown corporation, Air Canada received a total of $679 million
in loans and equity from the federal government. However, it returned to the government $1.02 billion – or$341 million more than it received – in dividends, interest and capital repayment. ? In addition, as part of a 1974 election promise the
federal government paid the capital cost for a new hangar in Winnipeg (approximately $14 million) and operating costs until Air Canada put it into full production. ? The federal government also chose to convert $324 million of outstanding loans into
equity in 1978. This money was repaid in full as part of the privatization process. Immediately prior to the first public equity offer in October of 1988 the federal government decided to strengthen Air Canada’s balance sheet – in order to heighten the attractiveness of the IPO to would-be investors – by issuing $246 million worth of treasury shares (offered at $8/share). Nine months later, in July 1989, the government sold its 41 million shares at $12 each, completing
Air Canada’s privatization and raising $493 million for the Government of Canada. That money not only repaid the government’s
1978 equity investment in Air Canada, but also provided the government with an additional $164 million.

1989-present:
A Publicly-Traded Company After privatization was completed in July 1989, Air Canada had an outstanding unsecured
loan from the federal government of approximately $300 million. Many commentators in the past have assumed that
federal loans constituted a form of support in that Air Canada would have accessed preferential rates for financing secured by crown assets - in fact the loans were entirely unsecured and paid at market rates. That amount was fully repaid, with interest by 1993. Since privatization, Air Canada – unlike many of its past direct competitors – has not received any significant federal financial assistance.
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