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Milton says,,,,,


Kip Powick

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Part of the text of a speech given by Milton, and passed on to me...FYI

.......Through their commercial actions, Westjet is clearly targeting Jetsgo and Canjet, and one need not look any further than their aggressive pricing and expansion into the Maritimes where Canjet had been trying to develop a home market niche. Clearly, the biggest threat to Jetsgo and Canjet is Westjet’s actions which are fighting these new carriers inch by inch, dollar for dollar and route by route. No one should be confused by a wolf in sheep’s clothing...........

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Aggressive growth? Sure.

Aggressive pricing? Sure.

Anti-competitive growth? No.

Anti-competitive pricing? No.

Westjet has aggressively grown, there's no doubt about it. Has Westjet been charging prices at which it can afford to charge? You bet. Has Westjet been offering fares on-par with Canjet? You bet.

Milton calls Westjet's expansion into the maritimes as "targeting" Canjet. What does he call Zip's birth and expansion into western Canada then? Healthy? Fair? Competitive? PROFITABLE?

Clearly, the biggest threat to Jetsgo and Canjet is Westjet’s actions which are fighting these new carriers inch by inch, dollar for dollar and route by route.

And the biggest threat to all three of the above carriers is Air Canada. Air Canada has been fighting Westjet, Jetsgo, and Canjet for years inch by inch, and not even dollar for dollar - by charging LESS than the competition on specific routes. $69 fares from Calgary to Toronto? $30 walk-up fares from Abbostford to Calgary? $12 fares from Toronto to Ottawa?

Abbotsford to Calgary? Calgary to Victoria? Calgary to London (YXU)? All routes offered exclusively by Westjet for a while until Zip came along. Like I said, I'd expect more statements like this to come out as Westjet expands. Heck, you could even take out the word 'Westjet' and insert 'Air Canada' and the statement would almost make perfectly good sense.

Milton's right - no one should be confused by a wolf in sheeps clothing.

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After a further reading in a thread down below, I found this:

Air Canada chief executive Robert Milton said yesterday his airline intends to match the fares offered by domestic competitors but focus much of its growth on international markets.

In an internal newsletter to employees, Milton said the recent suggestion that Air Canada is attempting to cripple rivals by selling seats way below cost is "not only-self serving but also entirely false."

Clive Beddoe, chief executive of Calgary-based discounter WestJet Airlines Ltd., made the assertions Monday.

"The fact is that Air Canada intends to be fully competitive and match fares initiated by our competitors - a perfectly legitimate business response in a highly competitive environment," Milton wrote. "As we focus much of our growth on international markets such as Delhi, Buenos Aires and Santiago, we have also reduced capacity in the domestic market."

Milton said Air Canada is the only Canadian airline that has cut its domestic capacity.

Analysts warned this summer of the negative effects Air Canada's pricing would have on other airlines. At one point, for example, Air Canada was offering one-way fares between Toronto and Ottawa for $12.

Milton has forgotten the biggest issue when it comes to making points - FACTS.

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"Milton said Air Canada is the only Canadian airline that has cut its domestic capacity."

... Duh... Well geewhiz, was there any others left that could have? Does he expect a hero cookie for that bit of brilliance?

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