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Air Canada Soars, Westjet takes a predictable nosedive

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2 minutes ago, DEFCON said:

A little mean spirited perhaps?

 

Yes, sounded to me like the reporter has some sort of past grievance that is affecting his writing.

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So biased

Air Canada now outperforms all of its North American major-airline peers on the key metric of revenue per employee, at $688,000 to WestJet’s $392,000.”

 

This is is a key metric? 

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3 hours ago, internet said:

This is is a key metric? 

It is a metric that stock analysts like to use.

There are hundreds of metrics that need to be looked at to determine the health of an airline.  There is no one figure that tells the whole story.

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7 hours ago, internet said:

So biased

Air Canada now outperforms all of its North American major-airline peers on the key metric of revenue per employee, at $688,000 to WestJet’s $392,000.”

 

This is is a key metric? 

I'm not sure it's a "key" metric either but I definitely remember bean, and other Westjetters, throwing around comparisons of the numbers of employees at Westjet vs AC - basically saving that AC was bloated and inefficient and Westjet was lean and mean.  To be honest AC was bloated and inefficient. I think I remember bean mentioning "employees per ASM."

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It's really a useless metric if you use it to compare one airline vs another. For instance, some airlines outsource some of their maintenance eg. heavy checks, engine overhauls etc. while other airlines will do that work in-house. Then some airlines outsource their ramp or passenger handling, while others do it all themselves. It's only useful if you compare the same airline doing the same things period A vs period B. There are no really good metrics to compare airlines ... even RASM and CASM are affected by Average Stage Length (think manpower required to fly long haul international vs short haul domestic) so the only metrics that really count are RASM vs CASM in the same airline. I will guarantee you Porter's CASM is sky high vs AC or WJ, but their RASM will also probably blow AC or WJ away. Airlines with First Class, Executive Class, Lounges, Frequent Flyer programs etc. will all probably have higher CASMs vs those who don't, but then, hopefully, their RASM will be much higher as well.

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I just learned that the Russians charge NASA $81,000,000 per seat to deliver an astronaut to the ISS.  The contract ends in April, but what are the RASM and CASM on that flight? :)

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