Agreed. However I am not so certain of the timing.Obbie wrote:The unions are not going to be able to do a single thing to stop what is about to happen.
This is a fundamental industry reconfiguration and the wheels are already in motion.
Jazz management got it started by being stupid during contract negotiations and
caused mainline to panic. The bubble was popped at that point and the wheels were
set in motion.
We will look like the US in 5 years.
If the Jazz CPA is solid until 2020 then so is your WAWCON. Air Canada expressed repeatedly during negotiations with ACPA the need to up gauge the Jazz fleet to make it more cost competitive. More seats flown faster at basically the same cost. 705's and q400's. Hence why TA1 had up to 60 705's exclusively to Jazz. Albeit those negots are now 1-3 years past tense and AIr Canada removed the exclusivity of 705's to Jazz during arbitration.
However, when the CPA eventually does come up for tender? Jazz will have to compete with everyone. Not just companies like SR, GA, Pasco, Hawkair, Voyageur ect ect. But also companies like Skywest and Republic for trans boarder.
Again "IF" your CPA is solid until 2020 Air Canada needs to refleet Jazz. They can't wait 6 more years with encore on the doorstep. What happens after that will largely depend on the ability of Jazz management and Jazz employees to find the cost savings required to compete with the above.
If the Jazz CPA is not solid past 2016? All bets are off. 3 years ago that was still a long way off. Not any longer.
As near as I can tell no one really understands the potential impact of the reference to 2016 and domestic market share loss within the CPA. I can tell you ACPA believes the CPA is solid until 2020 simply because Air Canada repeatedly talked about the need to up gauge Jazz's fleet in negots. I suspect your ALPA reps would be the most informed.
I personally heard Calin say at the last town hall when asked about former subsiduaries. He stated no one is immune from the cost transformation program. Not us at AC or our vendors. If someone is not cost competitive we will find someone else who is.
All this to say. Yes your likely right. But the timing?