Good Luck...

[c170b53]

Thanks gentlemen, that's the one.

[YYCcrew]

hhhhmmm, You know who would of been a great new CEO... Gordon Bethune, he fixed CO after 2 chapter 11's AND he cared about the company and its employee's... oh well wishful thinking.

[yycflyguy]

Looking after the employees, creating positive morale and creating a long term sustainable airline is right at the bottom of the "things to do" list.

[Squid]

[Rubberbiscuit]

From the Globe & Mail:

Anyway, Mr. Rovinescu's got his work cut out for him. In 2008, Air Canada's costs per available seat mile, outside fuel, was 12.4 cents. WestJet's was 8.3 cents.

That says it all. I don't see how Air Canada can ever be competitive/profitable on the domestic market in it's current state unfortunately. What does it cost AC to turn around a flight on average compered to WJ, in terms of grooming, ground handling, checking in etc? Must be much higher. So is the cost of training due to the wide variety of aircraft types and varying pay scales with the different types. Most European carriers pay the same regardless of type. Pay is based strictly on status and years of service. Eliminates a lot of the "chasing the buck". I am sure that is a tough sell for senior Captains on the widebodies, but maybe a necessity? Someone told me the domino effect of an upgrade at AC results in around $1 million in training costs. If true that makes it tough to compete against an airline that has one type and pay staff at the ground level of the operation alot less.

I have flown on AC quite a few times this winter and for the most part all flights have been full. Ticket prices are the same as WJ. How does one remain profitable while the other is sinking? Seem to me it boils down to operating cost.

[Realitychex]

I have flown on AC quite a few times this winter and for the most part all flights have been full. Ticket prices are the same as WJ. How does one remain profitable while the other is sinking? Seem to me it boils down to operating cost.

Seems to me your are absolutely correct.

[Jaques Strappe]

Seems to me that Westjet does not have an endless line up of over paid executives all syphoning money into dummie corporations and or Cayman bank accounts.

How much does the CEO of Westjet make? I doubt it even comes close to what has been "stolen" from Air Canada.

[yyz monkey]

How much does the CEO of Westjet make? I doubt it even comes close to what has been "stolen" from Air Canada.

$2.7mil all in: http://tinyurl.com/detfz8

[North Shore]

Perhaps a divestiture of routes/aircraft so that regional/national flying is done by the lower-cost subsidiary (Jazz) while the international flying is done by mainline?

ETA: Not that I wish any ill to any of the AC workers.

[WF9F]

And you think Jazz is the cheaper than Mainline to do the domestic flying? Let me guess which side of the fence your on???Seeing as we are now two seperate companies why not look to someone even cheaper than Jazz to do our feed? The CPA will certainly be opend up to lower it's inflated costs among other things they will try to axe.

[tailgunner]

Trust me North Shore, when CCAA hits again ALL options are on the table...
That being said, Jazz will be in a very precarious position. Don't forget that AC and Continental have agreed to work closely together. Continental express has lots of rj's and q400's etc, that are being flown far cheaper than any Jazz flight. Who's to say that AC doesn't have Continental express overnight 30 rj's at Pearson and fly all of the current transborder that Jazz is presently doing. It is a scary thought. Jazz pays their pilots more than what they do down in the States by 40- 45 % . There are no 100 000 dollar Dash captains employed by US feeder airlines. Georgian / CMA/ are also quite capable of flying the turbo prop routes that Jazz currently operates. CMA already operates 328'S that are evry bit as complex etc. as an old clapped out Dash 8.
Secondly, Jazz has 16 aircraft worth any money....The 705's. The other Jazz aircraft are essentially high timed/ high cycled aircraft that are not worth much...So the question is, how will Jazz be able to afford a fleet renewal. Q400's are a long way off. It may be far cheaper for AC to get Porter onside as a feeder as well.
Trust me. I do not wish to see this happen to Jazz, but before we all go throwing rocks in glass houses, I think a little realization that we are ALL in this together. NO whip sawing, no out - sourcing. OUT.

[Jaques Strappe]

I am sure you have all seen this one too. But if not...........

[North Shore]

As I stated:

Not that I wish any ill to any of the AC workers.

I perhaps should have specifically added JAZZ to that as well, although my intent did include them. I don't have any particular axe to grind, as I don't work for an airline, although, FWIW, I strongly agree with the sentiment expressed by Jacques. I was simply thinking out loud about what I thought would be a good way of lowering costs at AC, given my perception that JAZZ was a lower-wage affiliate.

As the thread title says: Good Luck!

[swervin]

Actually most US carriers are paying between 95-105 an hour for an RJ 200 captain. Horizon is paying $125 an hour for an RJ 700 Captain. Figure in a 25% currency exchange and those guys are making approx. $125 to $150 an hour. Figure in their tax breaks, writeoffs, etc. and they are making an equivalent of approx $175k a year Canadian for flying an RJ. Just the facts.

[tonysoprano]

I have flown on AC quite a few times this winter and for the most part all flights have been full. Ticket prices are the same as WJ. How does one remain profitable while the other is sinking? Seem to me it boils down to operating cost.

Seems to me your are absolutely correct.

You're right. But it's not just operating costs. Seems to me WJ did not have a fuel hedging problem and a currency conversion problem in 2008. We can go on and on about cost structure. WJ is simply not exposed to the same obstacles as AC. Yes, some of AC's problems are self inflicted, ie bad management, but others are due to the nature of flying that is done. So long as they stick with their model, WJ won't have to worry about the Euro, highly paid Flt Attendants, CSAs, CPA agreements, ground workers, Government Agreements etc. The revenue brought in by AC is enormous. All we need is someone who can do the right thing with it. Watch Cal work his magic, employees go through hell and in the end a leaner company prime to be taken over by a Star Alliance member or another airline trying to dismantle the Star Alliance. AC is vulnerable right now and no doubt the cowboys are enjoying the square dance. Enjoy it while it lasts.