Kip Powick Posted March 6, 2003 Share Posted March 6, 2003 http://www.globeandmail.com/servlet/story/RTGAM.20030306.wbxairc0306/BNStory/Business/ Link to comment Share on other sites More sharing options...
Airband Posted March 6, 2003 Share Posted March 6, 2003 Clive will have a live 1hr interview on ROBTV tonight @ 1800E. Will be archived at the following site for subsequent replay: http://www.robtv.com/channels/hubs/pastprograms_highlights_thu.html Link to comment Share on other sites More sharing options...
Guest TBird One Posted March 6, 2003 Share Posted March 6, 2003 It's interesting, the tribunal claims that nearly half of AC domestic flights are "predatory". AC is losing money at a record pace. I am no economist or accountant but this seems a reasonable assumption that if you are charging below your costs, you will lose money. So, in my mind, this is clearly a case of predation. While indeed AC would wish to protect its market through reasonable fares (ie- covering your costs plus a margin) in the meantime if someone comes in with lower fares and can still make money, that means that the new entrant has essentially invented a new mousetrap. The market has changed and AC cannot act swiftly enough to adjust their costs to be competitive. Link to comment Share on other sites More sharing options...
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