Bye Bye Zoom

[golden hawk]

http://www.rbcroyalbank.com/cards/zoom-notice.html

[Rowdy]

XS, I think you're a bit off on the whole idea of raising the costs of driving equating to people stopping the commute and working locally. Maybe 10 or 15 out of 10,000 people might make that choice. Same goes for the airlines. I mean.. Gas pries have tripled in the last couple of short years.. yet everyone around here is still commuting AND doing it in unefficient SUV's and trucks. As the prices go up.. so does the bitching.. but we're still paying the higher costs! My uneducated (but well payed) friend from high school said it best "I like driving my nice new Jacked up Hemi Ram to work and I'll keep paying for fuel till they run out of it.. it's a neccesary evil in my mind"

Again.. I'm sorry to all those downstream that got burnt! I have a couple of good friends that were FA's and a couple of the drivers and know some ground staff.. that sucks hard for those folk. Or as Birddog mentioned think about the other affected people.. the hotels that lost the business, the airport cabbies, the ground handlers etc etc. It puts the hurt on everyone.

[xsbank]

Hey Rowdy

Sooner or later your friend with the "jacked-up" truck will have to decide between gas and eating, or gas and beer. If the costs keep rising, a lot of us will think that way. I work across the country from my family because I can fly back and forth a couple of times a year and I could earn more here at my present, better, more interesting job. If I can no longer afford to fly, I will quit my job here, move back to be closer to the coast and make less money but will avoid airfares. Its all a matter of choice, or as the economists say, "maximising your utility."

Then the airlines will likely lose me for good.

[Four1oh]

how about 'gas or hooker'? I assume no one thought of that horrific scenario!!1

[Panama Jack]

It was only a few years ago that I would have taken up anybody on a bet on any amount of money that Air Canada wasn't going to make it til the end of the year. These were the days when the corporation's toes were dangling precariously over the edge of the cliff.

What do you make with the likes of United or even Delta airlines these days? I agree with others' observations that Air Transat is a different animal, but it is only as strong as the industry which is overall weak (at least in North America). Having said that, I was surprised that Zoom had lasted as long as they did when I saw their Boeing 767 at the gate earlier last month in Vancouver ready to push for London.

As for Westjet, it is a rare Canadian success story.

[...]

I agree with others' observations that Air Transat is a different animal, but it is only as strong as the industry which is overall weak (at least in North America).


As for Westjet, it is a rare Canadian success story.

I know you already know this PJ...however for the sake of the new kids reading...I'm also going to make it simple reading for the masses;

Transat is horizontally integrated. Zoom was vertically. Groupe Transat feeds off of the next sister company to the left or right, front and back. However any one sister company in Groupe Transat will never be in a position to threaten the Groupe from failure like a house of cards should one single company fall short of its fiscal targets.

AirTransat Airlines is just a necessary vehicle operated at cost and not expected to turn a profit...however is not expected to be in the red either. It is there to be used by the Tour Operating machine (Already owned by the Groupe). Brilliant concept...not used enough in this industry.

And one more thing about the success of Groupe Transat...it stays out of the way of Air Canada by focussing on "packages" with its sister tour operators. AND those sun destination resorts ARE OWNED BY Groupe Transat. Yes they own many resorts thus closing the loop on the consumer. It's an all Transat experience.

Canada 3000 thought they could go head to head with Air Canada after they bought Royal Airlines. Sked runs were not in Canada 3000 portfolio of experience. I don't know what they thought they were doing.

As for WestJet's incredible luck in timing taking advantage when Air Canada was down assuming the massive debt brought on by Canadi<n airlines, and a mini fight with Canada 3000. Clive was at the right place at the right time with the right plan at a specific moment...There is no magic in his wand...just well calculated luck. A luxury that Canada 3000 didn't have...timing.

[Rem]

Something I read on a sign outside the Fishbowl in Timmins once:

LUCK is when opportunity meets preparedness.

Going by that definition, IABD is right.