AC and regional flying?

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Re: AC and regional flying?

#26 Post by cv990 » Sat May 19, 2012 4:48 pm

It is a bit more complicated than that.. getting even one aircraft can be a real issue due to the constraints of the CPA with Air Canada. That CPA doesn't just deal with flying hours that we also deals specifically with the amount of aircraft that are allowed under the contract. We cannot just go get an aircraft and run it as we see fit. We have an option for an additional 15 Q400's; we need agreement under the CPA before we can get those aircraft. But as Jazz, the ideal would be to be able to get more aircraft OUTSIDE the CPA.. but where to fly them? We need to diversify somehow. Either we grow the flying or we grow the fleet. There isn't really the flying available right now, so the option is more aircraft.. the conversation goes like this:
Jazz: "we're getting more Q400's"
AC: "no you're not"
Jazz: "guess what? Yes we are"
AC: "you won't be allowed to use them on CPA work"
Jazz: "guess what? yes we will"
We need to get out of the constraints of this CPA, and we need to grow and replenish the fleet. What people need to understand, is that we have our hands completely tied behind our backs by Air Canada here. So getting an additional Q400 is actually a big move.. and opens the door to potentially more.

I can see the CPA going by the wayside after the smoke clears at Air Canada..we would then be operating under a codeshare instead..taking more at-risk flying. This isn't really a step outside the box for us, as we were doing all the at-risk flying for Air Canada for years as Air BC, Air Ontario, etc.

So one extra Q400 for now.
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Zip Tie
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Re: AC and regional flying?

#27 Post by Zip Tie » Sun May 20, 2012 6:02 am

Jazz would not be profitable operating outside the CPA using its current structure.Too many aircraft types and not having a sugar sweet deal from Air Canada would be the difference.Jazz is like a mini legacy carrier but this is the level of service that
Air Canada wanted.The resources required to keep that many aircraft types costs alot.Sayng that ,a bold move to operate on their own would only work with a huge operational change.
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Re: AC and regional flying?

#28 Post by The Hammer » Mon May 21, 2012 12:41 pm

AC didn't want the sweet deal Jazz recieved, ACE did so it could do the IPO for Jazz and make money for its investors ie Cerberus and GE, ie get rich quick scheme that Cerberus is known for. Same with AVEOS. Only Aeroplan is maybe a truly viable company as it stands as long as AC operates in some form. You can buy a toaster with Aeroplan points.

Jazz hasn't had a real marketing or sales department in many years now (small charter sales aside).

Looking at the US carriers that either tried to make it on their own, Independence Air former United CPA carrier now DOA, (Jazz operated a couple of their former a/c) or got shafted by their former owner (Continental Express, spun-off with sweet CPA (sounds familiar) then when CPA renewed having +100 ERJ's to find work for. Continental Express now Express Jet, had 300 ERJ's in Continental colors. The first time I saw a CRJ in Continental colors I had to walk up to the aircraft to make sure I was seeing a CRJ.

Just look south and back 10-15 years to see what will occur in Canada in 2012-2015.
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