Financial post: Air Canada Cargo and Cargojet war
Moderators: North Shore, sky's the limit, sepia, Sulako
Certainly hope someone in CANADIAN aviation gets something... If ACE gets something it'd be a good boost for the guys there.
I don't really think they'll end up with the good end of the stick on this one, but that's only my opinion. Simply based on being unsure about the DC10 on trans-pacific ops, but who knows, might be the right aircraft.
IMHO, what will end up happening is AC will continue to operate the MD11 on the current route structure (YYZ-ANC-PVG-ANC-YYZ). The cabotage request was only trying to help their bottom line and really had nothing to do with trying to service the ever so lucrative YYC-PVG market (insert saracasm here). Any YYC product will either headhaul to YVR or backhaul to YYZ to make the necessary connections. I don't think the DC10 will factor in here unless another carrier decides to wetlease it and make a go out of China.
Remember, the Canadian product heading to Asia (beyond seafood from YHZ and YVR) is the square root of zero, hope to get enough revenue out of it to cover the pilot per diems in PVG for a few days (more sarcasm - it's a bit more than that, but nothing that will cover the westbound operating costs)... The opportunity is all in the PVG return to north america.
I don't really think they'll end up with the good end of the stick on this one, but that's only my opinion. Simply based on being unsure about the DC10 on trans-pacific ops, but who knows, might be the right aircraft.
IMHO, what will end up happening is AC will continue to operate the MD11 on the current route structure (YYZ-ANC-PVG-ANC-YYZ). The cabotage request was only trying to help their bottom line and really had nothing to do with trying to service the ever so lucrative YYC-PVG market (insert saracasm here). Any YYC product will either headhaul to YVR or backhaul to YYZ to make the necessary connections. I don't think the DC10 will factor in here unless another carrier decides to wetlease it and make a go out of China.
Remember, the Canadian product heading to Asia (beyond seafood from YHZ and YVR) is the square root of zero, hope to get enough revenue out of it to cover the pilot per diems in PVG for a few days (more sarcasm - it's a bit more than that, but nothing that will cover the westbound operating costs)... The opportunity is all in the PVG return to north america.
Cargodog is 100% correct.
AC's only reason for this latest move is they see Cargojet as a threat - and anyone who is a threat, they try to squash. AC wants no competition because they know they will eventually end up with the short end of the stick.
The domestic market is so saturated with carriers that ther is no call for a widebody service that simply stays domestic. Domestic stops.......yea - but a final destination down south or overseas would be nessecary.
ABC - thanks for your opinions, but leave the business aspects to those who know what they are doing.
AC's only reason for this latest move is they see Cargojet as a threat - and anyone who is a threat, they try to squash. AC wants no competition because they know they will eventually end up with the short end of the stick.
The domestic market is so saturated with carriers that ther is no call for a widebody service that simply stays domestic. Domestic stops.......yea - but a final destination down south or overseas would be nessecary.
ABC - thanks for your opinions, but leave the business aspects to those who know what they are doing.
