Air Canada as a Discount Carrier

[Guest Patrick Bergen]

There seems to have been much discussion of late in regards to the comparison of Air Canada and Westjet and other discount carriers. It has been noted that the airline companies that are doing well are these same discount carriers. The fact that Air Canada does not operate like these carriers has been the quick reason given for its current state.

If one looks at the companies that are restructuring at present the list includes most of the international carriers.

An airline simply cannot service an Asian city from North America with a single fleet type. A company would also require check in agents trained in the requirements of international travel. On the ground, aircraft loading equipment and crew would need to be able to service the large aircraft type. In the air, the airline would require an ETOPS program as required as well as regulatory approval for the destinations. In the barn, maintenance would need to be familiar with more types of aircraft and the costs would be exponentially higher for large aircraft out of service.

It is all of this infrastructure that is in place at Air Canada and other companies like United. The same ramp crew, check in agent, equipment, dispatch and operations group, and maintenance personell are used for the shorthaul domestic routes as the overseas ones. It is this same infrastucture that has to compete head to head with discount carriers in the new post September 11 market and why it is being divided into operational groups (Zip, Jazz, Technical).

Air Canada has definitely not been lily white over the last few years. Westjet should also be admired for the excellent progress it has made in the marketplace. While Air Canada could learn some things from Westjet its sucess will not come from becoming Westjet.