AC announces non stop Calgary to Hawaii

[yycflyguy]

Whiteguy, you did hear about the 1 billion dollar loan AC secured with the government... right? That's what he's talking about.

Negative ghost rider. AC secured 1 billion in club loans from SEVERAL lenders. The Canadian government's loan (at an interest rate just under that of a loan shark) is $250 million ($100 million directly from the government and another $150 through Export Development Canada). The biggest contribution to AC's piss poor management came on the backs of the employees who are forgiving pension shortfall payments for 21 months... hopefully, the markets improve in that time frame and AC wont be facing any pension shortfall.

oops, yeah you're right, my bad. Still though, that money is only a loan if it get's paid back. I am concerned that the money will be squandered with no plan for repayment. The reason I say that is will AC be able to make the payments on 12.5% interest?

I believe the government gets paid back first. As for the exorbitant rate, well, I guess the employees will be asked for concessions to cover it.

I think the real question will be the pension payments ever be resumed. We'll have to see if they can even take care of their own people first before us taxpayers will ever see a dime of our money repaid especially at 12.5% interest. Don't think half empty 767s to Hawaii will do it.

Our load factor is still over 82%. Half empty won't be the problem. Leisure travellers using their points for travel to the islands will produce low yields but from an AC employee point of view, I like that they are willing to fight for some of the previous market. Game on!

[Brick Head]

I recall one of the legacy airlines last operated Calgary - Honolulu the winter of 2000 outbound on Friday, Saturday and Sunday with a 19:15 departure and a 23:15 arrival, and Sat, Sun and Monday with a 1:15am departure and 10:35am arrival. They also operated Toronto-Honolulu daily, a 10 hour sector, with an 18:25 departure and 23:25 arrival, and a 1:00am departure and 14:53 arrival. I believe both experiments lasted a season before they were reconsolidated to Vancouver.

The route dynamics of HLN were vastly different then. YYZ-HNL, YYC-HNL, and YVR - HNL all fed HNL- SYD and HNL - MEL. The route structure ran one 747/340 YVR-HNL-SYD. 911 and SARS hit. SYD and MEL fell off the map. The route feed was then consolidated to YVR and MEL dropped..

CAIL the predecessor to the route had the same issues with the route as Auzzie traffic ebbed and flowed. Since then other carriers have run the route with varying results. None had feed into YYC though.

Today their is no such structure as SYD is flown direct and as such a very large gauge aircraft YVR-HNL no longer required. Leaving capacity to be dispersed to other locals inbound to HNL. There is also no other traffic on the route as in past years. AC has deciding to run the route completely on the merits of the route rather than potential feed to other routes. That is a first for YYC- HNL and AC or CAIL.

Have to see how the route does and how much capacity adjustment takes place out of YVR as a result. Looks like a good move to me.

[YVR Dude]

WJ has seen a number of airlines with cheap fares try Alberta - Hawaii non-stop over the past few years. Transat tried it last year, Harmony did it out of Kelowna, Edmonton and Calgary for a few seasons. Both had cheap fares and reasonable flight times. Neither did well.

Just a quick thought...

Although obviously HMY a whole was not successful, the story I heard (from a good source) is that the YYC-Hawaii routes were always a strong point in their route network, in both load factor and in yields. My understanding is that HMY planned to do Hawaii right from the start - delaying initially only until they received their ETOPS. I believe AC didn't serve it at the time and WJ couldn't reach with their 37's.

Harmony did just fine on these routes...in fact, OGG was full with business class, but HNL seemed to fill the back and not much for the business class..definitely two different types of people travelling to the islands..Edmonton was weak because of the departure times, Kelowna was received well, and of course Calgary was good..One thing that still bothers me is the range that will be flown..we flew this route averaging 6.5 to 7.5 hours...at .80

You guys will be slower, trying to cover the same range, you'll need fuel for the trip, ETOP's fuel + running the APU for the sector...and all doing this with less pax...not sure how this would be profitable, but hey..what do I know?

[North Shore]

The reason I say that is will AC be able to make the payments on 12.5% interest?

12.5% WTF?!! What moron says yes to a loan at 12.5, when the prime rate is, what, .5%? Mind, I guess that that rate is given to the BoC's 'Best' customers.

[JestWet]

.

[Rotten Apple #1]

when the prime rate is, what, .5%?

Nope. It's 2.25%. The BoC's overnight lending rate is currently 0.5%.

[Stoptheworld]

12.5% WTF?!! What moron says yes to a loan at 12.5, when the prime rate is, what, .5%? Mind, I guess that that rate is given to the BoC's 'Best' customers.

A moron that has no other choice.

That kind of interest rate is far beyond junk rating in these times and reflects the level of risk that the lenders perceive. i.e. Very, Very, High!

[tonysoprano]

Relax soldiers. The actual payments are going to be 30 mil each quarter. Quite manageable in my view. I know, I know.......

[Old fella]

Anything with 5++ hrs flying time, covering a distance over lots of water is going to be "big planes" vs. "little planes". Quaff a few beers enroute, listen to a few tunes, watch the moving map display, have a snack. Get up stretch your legs, go for a stroll down one the 2 aisles to get the circulation moving again in your arse. Drop in to one of the two cans back end to piss out the half jug of western beer (not as good as Keith’s red though). Go for a stroll on the other isle and drop into the can (mid ships) to piss out the other half jug you forgot was there. Back to the seat, look out at the ocean below, read another chapter in the book. The middle aged lady a few years younger but with some grey and a pleasant smile “how’s your coffee doing there”. A top up would be great” thanks for that, old dear”. “Your welcome, sweets” was the reply.

Starting down now, that 5.45 enroute was quick so it seems, comforts of the” big plane” I suppose. Mind started wandering about, teal tail colored airplane down south last springs vacation close to the same time in the air, had to line up down back to disgorge the usual intake. Crossed my legs several times, to many old people taking a leak same time. Silently cursing …… old fella, ya got stop the pre flight intake in YHZ especially with “little airplanes”, gonna piss my clothes, gonna happen!!!!

[The Raven]

Don't forget having a choice of excellent movies, documentaries, dramas, history channels, science channels, sitcoms, music, etc. on a large screen all the way to your destination on one airline. Old Fella, you can even pause the entertainment while you take your bathroom break.

Sure beats watching Oprah, The View, Wheel of Fortune, etc. (on a tiny screen) to the coast and then nothing for 4 hours on the other airline.

[whiteguy]

Looking at all the flights for December and the HNL flights are mostly full with 20 or less seats open. The OGG flights are the same but some are full and even a couple over sold.

[balfour]

Looking at all the flights for December and the HNL flights are mostly full with 20 or less seats open. The OGG flights are the same but some are full and even a couple over sold.

......with employees

[whiteguy]

Looking at all the flights for December and the HNL flights are mostly full with 20 or less seats open. The OGG flights are the same but some are full and even a couple over sold.

......with employees

Not many getting on the Maui's!