CanadaEH Posted March 13, 2015 Share Posted March 13, 2015 Transat cutting costs as it seeks to restore profit after weak quarterROSS MAROWITSMONTREAL — THE CANADIAN PRESSLast updated Thursday, Mar. 12 2015, 2:26 PM EDTAir Transat president andCEO Jean-Marc Eustache speaks to shareholders at the company's annual meeting Thursday, March 12, 2015 in Montreal. (Ryan Remiorz/THE CANADIAN PRESS)Tour operator Transat A.T. Inc. will create hubs in Toronto and Montreal, add seats to some transatlantic flights and look to increase revenue from ancillary fees as it seeks to boost profit amid heightened competition and a lower Canadian dollar.The owner of Air Transat is aiming to find $100-million of cost savings and margin improvements over the next three years.Among other things, Transat will add 30 seats on three Airbus A330 wide-body jets dedicated to routes to London and Paris.Transat will also fly routes from Vancouver, Quebec City and Halifax to hubs in Toronto and Montreal for service to select European destinations this summer.“When it comes profitability, there is still work to be done,” CEO Jean-Marc Eustache told shareholders after releasing a larger than expected loss in the first quarter.On the Toronto Stock Exchange, Transat’s shares were down 53 cents at $6.17 in afternoon trading.Savings from lower fuel prices have been more than offset by a drop in the loonie, which increases costs especially for hotel rooms priced in U.S. dollars.Transat said it will seek to boost ancillary revenue by 22 per cent to $60-million in 2017, mainly by installing new software that will allow passengers to pay for advanced seat selection. However, there is no plan to introduce baggage fees to existing charges for on-board food and duty-free purchases and new cargo services.The strategic plan was more “aggressive” than anticipated by analysts, said Benoît Poirier of Desjardins Securities Inc.Eustache said Transat will also look at new markets in South America, Africa and Asia over the medium term.While he’s not concerned about an eventual opening of Cuba to American travellers, Eustache said lower oil prices will reduce the number of south-bound Canadian travellers from Alberta and Newfoundland and Labrador.Transat’s plan was unveiled Thursday as the company issued disappointing results and warned its key winter season will be down from last year.Transat said it lost $64.3-million or $1.66 per share in the first quarter, compared with a loss of $25.6-million of 67 cents per share a year earlier.Excluding one-time items such as fuel-hedging contracts, the adjusted loss was $32.4-million or 84 cents per diluted share, compared with a loss of 67 cents forecast by analysts.Revenue for the three months ended Jan. 31 fell 6.9 per cent to $788.6-million as the number of travellers declined 8.1 per cent and revenue from subleasing aircraft fell. Link to comment Share on other sites More sharing options...
mrlupin Posted March 13, 2015 Share Posted March 13, 2015 30 extra seats??This race to high density conversions doesn't cease to amaze me...At a time when the average north American is anything but "slim", most carriers are decreasing seat pitch and in some cases width...Why stop at 30 extra? Transat will be going from 345 to 375 seats. Philippines is operating at 414 seat A330-300... Link to comment Share on other sites More sharing options...
st27 Posted March 13, 2015 Share Posted March 13, 2015 "Philippines is operating at 414 seat A330-300"... Interesting..the AOM limitation in AC's 330-300's is 375, currently configured for 265, but that is subject to an increase. Link to comment Share on other sites More sharing options...
Gumbi Posted March 13, 2015 Share Posted March 13, 2015 I wouldn't want to disappoint you Rich, but I guess I'm not a real Québécois since I don't eat poutine, but I do value respect! Link to comment Share on other sites More sharing options...
CanadaEH Posted March 13, 2015 Author Share Posted March 13, 2015 Be more respectful to Transat? Wow thin skinned crowd this morning. .... Link to comment Share on other sites More sharing options...
rudder Posted March 13, 2015 Share Posted March 13, 2015 Sunwing Travel Group is winning the winter battle (growth AND profit) and sooner rather than later AC (Rouge) will have densed up 330's running against AT on prime summer routes across the Atlantic.It will be tough for AT to fight a battle on 2 fronts and improve the bottom line. Link to comment Share on other sites More sharing options...
acsidestick Posted March 13, 2015 Share Posted March 13, 2015 When at SSV, our Airbus FCOMs showed a maximum of 440 for the A333. During the winter months (North/South operations) ours was equipped with 387 seats. In summer months (trans-Atlantic operations) we had 361 seats.Before Gumbi gets spews his poutine , could the kind admin folks please edit the title of the threat to be more respectful of Air Transat?Right off the Airbus website, the 330-300 is certified for 440 seats. If you look at a picture of AC seat map, nearly half the cabin length is used by the 37 J Class Pods. Link to comment Share on other sites More sharing options...
Guest Posted March 13, 2015 Share Posted March 13, 2015 Title edited per request. Link to comment Share on other sites More sharing options...
internet Posted March 13, 2015 Share Posted March 13, 2015 Right off the Airbus website, the 330-300 is certified for 440 seats. If you look at a picture of AC seat map, nearly half the cabin length is used by the 37 J Class Pods.So if anyone ever wonders why J class is "so expensive"... A lot of real estate per passenger. Link to comment Share on other sites More sharing options...
Guest Posted March 13, 2015 Share Posted March 13, 2015 So if anyone ever wonders why J class is "so expensive"... A lot of real estate per passenger.it is so expensive because the public (guest/ passengers) will pay the price. In the business world there is still some prestige in flying first class or in it's absence, business class. Also of course a lot of businesses believe they have an valued investment in their executives and believe they should arrive at their meetings in fine fettle rather than being exhausted after several hours in steerage . Link to comment Share on other sites More sharing options...
Guest Posted March 14, 2015 Share Posted March 14, 2015 There's always these gems Link to comment Share on other sites More sharing options...
Seeker Posted March 14, 2015 Share Posted March 14, 2015 I can guarantee that if it ever comes to that I'll be taking the train (or staying home.) Link to comment Share on other sites More sharing options...
Innuendo Posted March 14, 2015 Share Posted March 14, 2015 That looks AWFUL. If you dropped anything you could not pick it up until the row was empty. Good luck.This is truly cattle car class. Link to comment Share on other sites More sharing options...
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