http://www.theglobea...article2345393/ When initially reported , the press tended to focus on WestJet vs Porter. I think this is probably more relevent...
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Chorus Vs Westjet
Started by
airt
, Feb 21 2012 04:10 PM
1 reply to this topic
#2
rudder
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Posted 22 February 2012 - 07:06 AM
Of course CHR is concerned about Westjet Regional. CHR stands to see a reduction in minimum annual hourly guarantees and therefore revenues under the AC CPA in 2016 if the AC share of the domestic market shrinks as compared to a benchmark established in 2008/2009. 40 WJ Q400's are going to put a serious dent in AC domestic market share. The only question that remains is whether AC partners with CHR to develop a preemptive competitive response or simply lets the chips fall in 2013 and deal with the fallout after the fact. It may simply come down to whether AC is willing to negotiate rather than dictate and how deep their relationship is with Russ Payson and Skyregional. CHR is likely more than willing to park the additional debt load associated with incremental Q400's on its own balance sheet. Are AC/SKY willing to do the same? It certainly sounded like CHR was willing to compromise based on comments made by the CEO on the CHR Q4/YE2011 conference call.
