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Aeroplan & Air Canada: Discount leader?


Guest ex-SkyGeek

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Guest ex-SkyGeek

From another forum:

"The Union agreements between AC and ZIP restrict Zip to 20 Airplanes. This agreement may change as the Company may see this as an opportunity to increase the ZIP fleet, thereby keeping people employed at lower payscales. This may also be the time that AC uses the CCAA application to go after WJ. Who knows?"

Couldn't agree with you more. Through CCAA I'm sure we'll see mainline domestic operations all but cease, while the discount models (Tango and Zip) see tremendous growth under some form of merger. Remember, Air Canada is trying to use Force Majeure on union contracts in order for the Company to survive.

If they are successful in their endeavours, labour costs would be down dramatically, mainline employees will flood what ever becomes of Tango and Zip, and in-line with what Milton publically announced he had hoped for (about 3 weeks ago).

We will now see Air Canada becomes what we were; reliable, affordable, [discount] air travel - but with Aeroplan. That will be their sinker to keep all the business travellers they haven't already lost to WestJet.

And if that's what it takes to keep Air Canada going then so be it. As I've stated before, like it or lump it (and lucky for them), we still need their services for the time being, especially their extensive international and trans-border network.

I wouldn't worry too much about WestJet. It seems they can hold their own against Air Canada; although, it may be a different ball game now if Air Canada is allowed to become a discounter too.

What an interesting few months ahead!

Jason

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