WestJet re-evaulting the East

invertedattitude · Post by **invertedattitude** » Wed Sep 06, 2006 5:52 pm

Rumors they are looking closely at the east since CanJets withdrawl... any solid info?

bmc · Post by **bmc** » Wed Sep 06, 2006 11:48 pm

Why would Westjet make Atlantic Canada work when so many others haven't? It all gets down to market size and yield. There's no magic.

wooden spoon · Post by **wooden spoon** » Thu Sep 07, 2006 8:59 am

because they have the route structure to support it as well as potential frequency to attract new x canjet customers.The business is there for sure.

bcflyer · Post by **bcflyer** » Thu Sep 07, 2006 12:40 pm

If the business is there, then why would CanJet stop flying? If there was overcapacity, then downsizing would have made more sense.

bmc · Post by **bmc** » Thu Sep 07, 2006 2:55 pm

bcflyer wrote:If the business is there, then why would CanJet stop flying? If there was overcapacity, then downsizing would have made more sense.

exactly

Troubleshot · Post by **Troubleshot** » Thu Sep 07, 2006 2:55 pm

I think maybe Ken Rowe feels he can make more money using CanJet's operating budget to get more military contracts, rather than ride the highs and lows of an airline. I'd say he just took the money and ran, from what I have heard CanJet were operating at a 80 % load factor give or take...not sure on yield but you have to figure their operating costs were quite a bit lower than WJ or AC so maybe they were doing OK.
I think downsizing and cancelling routes would have just hurt the rest of the route structure and caused weak loads.

bmc · Post by **bmc** » Thu Sep 07, 2006 3:00 pm

If he's averaging 80% LF and he can't make a go of it, what's the point?

Remember, it's not hard to fill an airplane. The challenge is to fill an airplane AND make money. It gets down to opportunity cost. If he can re-deploy equipment elsewhere and make more money, he's a smart guy.

YVR Dude · Post by **YVR Dude** » Fri Sep 08, 2006 1:52 am

Maybe he's just trying to do some union busting??

Blastor · Post by **Blastor** » Sat Sep 09, 2006 9:27 am

KAG · Post by **KAG** » Sat Sep 09, 2006 1:56 pm

YVR Dude wrote:Maybe he's just trying to do some union busting??

Yup.

tellyourkidstogetarealjob · Sat Sep 09, 2006 11:48 pm

Troubleshot wrote:I think maybe Ken Rowe feels he can make more money using CanJet's operating budget to get more military contracts, rather than ride the highs and lows of an airline.

If I remember rightly that was that logic CP used when they sold CP Air. The cash they pulled out of the airline they used to build two supertankers that provided a 12% annual return on their investment. The airline was providing a 2% return.

jjj · Post by **jjj** » Sun Sep 10, 2006 4:46 pm

I think Blastor is K.R.

jjj

tonysoprano · Post by **tonysoprano** » Sun Sep 10, 2006 5:27 pm