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Montréal-Trudeau consolidates its position as an international hub

46 messages dans ce sujet

3 minutes ago, ERJ-Boy said:

It's not really a tough conversation... Increased competition reduces airfares and improves the synergies between cities. That's great. 

However, the gulf states subsidize their airlines, which is unfair in this free market. 

Air Canada has a good product, and a solid base of loyal customers. I don't see a reason why they wouldn't be successful, even with open skies agreements with other countries (except the above mentionned gulf states)

would you want a foreign country "dumping" their products in Canada, when Canada produces the exact same product at fair market rates, with fair labour wages etc. It would bankrupt our exports.

Change your perspective, air deals are the same as international trade agreements

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No they're not... air fares are much different than regular, commodity prices... The demand is much more elastic, and people are incredibly price sensitive... 

It's much easier to upsell when it only cost a couple of dollars more for locally grown products. It's much more difficult to attract customers if your product is several hundred dollars more... 

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3 minutes ago, ERJ-Boy said:

No they're not... air fares are much different than regular, commodity prices... The demand is much more elastic, and people are incredibly price sensitive... 

It's much easier to upsell when it only cost a couple of dollars more for locally grown products. It's much more difficult to attract customers if your product is several hundred dollars more... 

Non-sense. Air travel is a commodity. People will travel WOW Air to Paris via Iceland just to save $50. 

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Which is exactly what I'm saying... The demand is so elastic and price sensitivity is huge for air travel. 

Food is not though... Which is why it's much easier for people to buy local food products than it would be for air travel...

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Wouldn't you rather as a Canadian have fair and balanced air deal that benefit Canadian carriers that create jobs and economic opportunities in the home country?

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The issue of whether a specific airline is providing unfair competition on international routes has to be resolved at an international level; not by a National government. A Canadian airline has lots of natural advantages, unavailable to airlines from other national carriers, which would also have to be taken into consideration.  (educated workforce, long-standing brand, natural national market...which is inapplicable in most Gulf States, built-in customer base due to large distances and dispersed population, several major cities to draw from, cheap electricity, etc.) Most of these are unavailable for a carrier from a Gulf Sate or from many other parts of the world. So they will bring their own value added advantages and, when necessary,  it will be up to international authorities to determine whether or not they have an unfair advantage. For example, is it really unfair for a government to provide subsidies? Sometimes yes, sometimes no.

If AC authorities are not defending their turf and are not presenting arguments to the Canadian government as why a certain airline is providing, in their view, unfair competition, then they are not being responsible to their shareholders. The Canadian government however, has a double-barrelled interest; yes, to protect important jobs in the airline sector, but also to ensure that Canadian consumers have the best possible choices. In the current protectionist environment, it is the consumer who loses out.    

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