AC should have 100 aircraft

[dagger]

Air Canada has certainly been shifting its emphasis from North America to international. You only have to look at the new routes recently inaugurated or planned: Lima, Bogota, Havana, San Juan, Caracas, New Delhi. An extra flight to Sao Paulo. More is coming. You can't inaugurate 50 new overseas markets all at once. The shift has to be gradual, and because it is it isn't readily noticeable yet. Interestingly, many of these new destinations are being served with Airbus narrowbodies being pulled from the domestic market. And some 767 flying is being moved to the international market this summer. AC has double daily service from Montreal to London and Frankfurt. The A340-500s are another part of this equation, and if it were me (and I could convince ACPA) I would have another 6-8 of these to serve new markets like Johannesbourg, Bombay and Dubai.

So the shift is occurring, only it's not happening in a way that is readily appreciated. But over time, it will become obvious.

Same thing with the labor force. Layoffs continue. Back in June 03, the company said the work force reductions would continue until 2005 at least, and we know of more layoffs in the IAM and especially the CAW. Lower unit labor costs (wages) are one part of the equation, but if you cut the CAW group down from 10,000 (in 2000) to 2,500 (in 2005) because passengers are self-booking or using kiosks (that will soon dispense baggage tags and process changes to reservations), you achieve enormous aggregate labor cost savings. So here too, you are looking for a dramatic change and don't see one, but if you look back at where AC was two years ago, you will see huge change, with more huge change to come.

Another big reduction in aggregate costs will be achieved when the Embraers come in starting in late 2005 because they will permit the airline to downgauge - or upgauge from a CRJ on flights over 90 minutes - and probably sell off a lot of older Airbus narrowbodies. The fuel and labor savings alone will be substantial, even if the airline doesn't alter one iota of its current North American schedule.

[Guest greener]

VERY good Patrick!

[Guest greener]

Quote from Dagger:

"Jacques, it's that analysts shouldn't be playing both sides of the street like you are. Octagon is no doubt shilling for Jetsgo work and future Westjet work. There is no doubt a Cornucopia of profit to be made off LCCs if AC goes under. Therefore your commentary, whether accurate or not, is both unseemingly and unethical. Even with a disclosure."

Yes Dagger, that about sums up my feelings about Mr. K's opinion. It's one thing to blast away here, but to do it on national media which can dramatically affect future bookings is borderline.... you fill in the word.

Cheers,

Steve

[Guest neo]

As with the folks at Enron et al, you learn a good lesson about shame: some people have none. They're quite happy to behave in the most unethical way possible if it lines their own pockets. If they're caught, it's deny, deny, deny.

I'd recommend that Air Canada have at least one more communication with Mr. Kavafian. I hope the company's lawyers are drafting it right now.

[Guest manwest]

*where the customer would be clearly better served* can you qualify that for me, better served in long check in line ups where a checkin agency closed to have their break with 300 people in line, a ramp agent or 25% of them don;t show up for work, the plane is loaded late, or frustrating pilots because no one is there to marshall the plane into the gate, or be treated rudely by a flight attendant because they asked for a glass of water or the full can of coke??????

If you come into our office and ask for Air Canada you get an honest AC quote along with JetsGo, WestJet or Canjet depending on the route, then you decide who you want to fly with, oh you may ask if the low fare on AC the *tango fare* gives full aeroplan points or advance seat selection and I tell you no, you can still pick whoever you want. All our fares quoted include all taxes and fees including our *service* fee.

[LongTimer V]

What are the likes of Richie doing right now?

It seems keeping the membership in the dark is still the norm.The time for wheelin and dealin are over,lets go with "The Plan" and if at the end of day we survive,all the better,but dragging this out serves NO purpose

[Guest AME]

manwest

I do understand your preference for booking commisionable flights, but the examples you've given while do exsist from time to time are not the norm, at least not in my experience.

When was the AC FAM trip you took?? and did you start your journey with an open mind or did you go to the airport expecting things to go bad??

Brett

ps: Since service charges are necessary because of the demise of commisions, do you prorate your service charges for booking airlines that still pay them??

[Guest Valoisguy]

Who are you suggesting ACTS could not compete against with "onerous labour agreements". Perhaps it is difficult on airframe heavy maintenance, but not in other ares such as components and engines

[dozerboy]

There you go with your delusions of grandeur again Jackie.

[Guest manwest]

Brett I have never been on an AC Fam trip, there are not a lot fam trips offered nowadays too much of a cost factor.

I will relate my last AC flight for you, my friend and I were going to HNL on aeroplan points, as we were boarding a nice friendly gate agent tell me I can sit in 15C insted of B as the flight was not full, so I thanked her and sat in 15C. Waiting to depart someone boards and I am in her seat, no problem I offer to move to 15B, she says not to worry *the loads were light today*, she moved and sat further back. After take off its drink and light snacks, a sandwich or something like that, my friends gets his tray, as the people across the aisle did, the f.a says to me in a condescending tone *we may not have a meal for you*, I was taken back by her tone. I said its ok if you've run out its not a problem, I will just have a drink. The f.a then asks me if I am pax Smith, I say no I am not, she then asks if I work for AC I say no I do not, bottom line I was in AC employees seat that I was told I could sit in, Ac employee is further back, I was just astounded that a F.A would treat another who she thought was a AC staff member that way. The flight back was non eventful, so thats my last AC experience.

Yes we prorate our service fees based on commission earned or whether we use a wholesaler fare or size of family travelling.

[Don Hudson]

Dagger;

Re your comment regarding J. Kavafian, "Your [Kafavian] self-interest is so compelling here, that it takes an awful lot of nerve to post here and pretend that your opinion is unaffected by your involvement with AC's competitors."

Exactly. Mr. Kafavian's credibility is zero on this issue. He pronounces, protests and self-promotes. But everyone knows why.

We at AC know what our problems are, how serious they are and how precarious the outcome is. For Kafavian to post as he has and title his posts as he has clearly demonstrates his interest. He's no analyst, that's for sure.

[proview]

" The next time your doing a interview please mention that the government can do their part for the survival of Air Canda,,ie Air Canada Act,French in the air,you know so all of Canada' airlines are on the same footing "

I hear this all the time. Now, I am from the West, and as a group we seem to yield to no one in the virulence of our opinions about official bilingualism, but is it reasonable to claim that Transat and Jetsgo have an unfair advantage over Air Canada because they do not have to speak French?

[Guest M. McRae]

All Canadian Aircarriers must do their passengers briefings in both official languages. Those who do not have bi-lingual staff meet the letter of the law by using a recording. However in additions AirCanada is required to provide all services to the passengers in both official languages (ground and air) in the same manner as required of a "Federal Institution". Other carriers are required (as tenants at an airport) to provide counter services "upon request" in French or English. So in a nut shell, AirCanada has to have bilingual staff on duty at all times and must staff their aircraft with bilingual staff, other aircarriers do not have to adhere to the same standard and their cost of staffing can be less (no duplication of staff to provide service in both French and English, training etc etc).

If you visit the following site, you will note that AirCanada is listed as being required to be bilingual but none of the other Canadian Airlines are so designated.

http://www.tbs-sct.gc.ca/burolis/advanced-avancee_e.asp

Office of the Commissioner of Official Languages site is found at:

http://www.ocol-clo.gc.ca/

[Guest M. McRae]

All Canadian Aircarriers must do their passenger briefings in both official languages. Those who do not have bi-lingual staff meet the letter of the law by using a recording. However in addition AirCanada is required to provide all services to their passengers in both official languages (ground and air) in the same manner as required of a "Federal Institution". Other carriers are required (as tenants at an airport) to provide counter services "upon request" in French or English at the airport. So in a nut shell, AirCanada has to have bilingual staff on duty at all times and must staff their aircraft with bilingual staff, other air carriers do not have to adhere to the same standard and their cost of staffing can be less (no duplication of staff to provide service in both French and English, training etc etc).

If you visit the following site, you will note that AirCanada is listed as being required to be bilingual but none of the other Canadian Airlines are so designated.

http://www.tbs-sct.gc.ca/burolis/advanced-avancee_e.asp

Office of the Commissioner of Official Languages site is found at:

http://www.ocol-clo.gc.ca/

Hosted by Web Hosting Canada

[proview]

errr... Yes. I am sorry I was not clear. I meant that as Transat and Jetsgo are largely "francophone" organizations to start with, they presumably do all those things anyway regardless of their official status.