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No Fair


Guest BillyBigToe

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Guest BillyBigToe

O.K. I’ve had it. That damn airline is trying to drive all competition out of business. No fair!!! We all agree you can’t sell tickets below cost or you’re acting anti-competitively. It is clearly an attack on other airlines, no other reason. We should put a stop to this unCanadian method of pricing.

Not only is their upper management a bunch of scoundrels, but every last line worker must also be in on it. I say we banish them all to Resolute Bay. How dare they try to undersell our prices and take away our guests? If they can’t sell their seats and make a profit they shouldn’t be allowed to stay in business. They should just send up the white flag and direct anything left over our way. Why can’t they see that we have a RIGHT to our guests, as well as theirs?

Air Canada????,,, NO.

HMY Airlines, YVR-YYZ $149.00

http://www.hmyairways.com/

WestJet Airlines, YVR-YHZ $189.00

http://westjet.com/

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Those are great looking fares. I wonder if HMY oversells any of its flights.

If they do then perhaps HMY is gambling on a few mis-connects - note the last line of:

HMY Airways Fare Conditions

* There is no minimum or maximum stay required.

* There is no Saturday, or any other day, minimum stay required.

* Advertised fares do not include taxes. Applicable taxes will be added to both fares and services. The following taxes may be added; airport improvement fees (AIF), Goods and Service Tax (GST), Nav Canada, Fuel Surcharges and Security taxes (ATSC).

* All HMY Airways fares are quoted on a one- way basis and subject to change without notice. Seats at the lowest fare are limited and may not be available on all flights.

* There are no “blackout dates” on any HMY Airways fare.

* Full payment is required at time of booking.

* Tickets are valid for one year from date of purchase. Tickets are non-refundable, non-transferable and non re-routable.

* Changes to a flight itinerary will be permitted up to 2 days prior to departure. A $25 (incl. GST) change fee will be charged per person, for each flight change - per direction, plus any difference in fare. No refund will be given on downgrades.

* No changes to a flight itinerary will be permitted within 2 days of each flight departure.

* Name changes are not permitted.

* All changes allowed above must be made through the HMY Airways reservations office toll free at 1-866-868-6789 or if in the Greater Vancouver area, 604-630-2000.

* Passengers who miss a flight, or flights, will forfeit the fare paid.

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Guest Patrick Bergen

I appreciate the sarcasm in your comments. There have been a few arguments made about this issue:

1) If AC is competing on routes by discounting then they are being predatory and are trying to drive the likes of WJ out of business.

2) Common sense would be just to charge fares that will allow a profit and pay the wages of AC employees.

The reality of the situation is that the low cost carriers could survive a prolonged fare war better than AC due to the infrastructure that is in place at AC. WJ and JetsGo do not have all of the equipment and employee training required to fly overseas etc. Either everyone are scoundrels or no one are scoundrels.

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I guess you can listen in on the conference call and we'll see if WestJet is selling below cost. My guess is though, it will be a profit.

As for HMY, private like Jetsgo and Canjet so only the owners really know.

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Guest BillyBigToe

There is no doubt, WestJet makes money. Do you believe they make money selling a seat from Vancouver to Halifax for $200.00?

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Based on the numbers I've seen, yes.

Not much but yes, at or above cost. There is no fortress or Hamburger Hill to defend. If it doesn't work, a la YTH, YSB, and YAM, we admit our faults and move on. The point is profit share, not market share (for WJ). I suspect some other carriers might be trying to hold on at a loss to see how much ground a restructured AC will give up.

This is going to be the big challenge for Air Canada. It would seem the infastructure is not set up to make money. When they match the cost they lose yet when they try to lower the costs too quickly the system weakens (retraining, lack of crews, morale etc...). I think they will emerge a stronger, better run airline but it will be quite a ride to get there. I would also guess that present operations under court protection are not a realistic vision of future operations. Maybe they'll be more like a JAL or Qantas operation, or maybe more like Continental 3.

Speaking of which, the CO folks I spoke with wish they'd dealt with all the pain and got it right the first time instead of having to revisit Chapter 11 three times.

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Guest BillyBigToe

So I guess if they can make money at

$200.00 for a future booking, they are doing real well when someone pays $680.00 for a seat within the next few day.

Get real, $200.00 a seat will not generate a profit. Of course I understand that overall they make money, but not at $200.00 for six hours of travel.

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