Friday, July 26, 2013

Price Fixing possibilities abound

What a load of crock !  We are supposed to be getting more choices to fly in a less expensive way!  Yeah right! The Canadian Business article below is full of how pretty soon we will be paying a lot less when we decide to use Canadian air carriers as we are gonna get two more airlines and that would mean more competition and better service, especially from Air Canada. Give me a break!  One of those "new" airlines will be an offshoot of WestJet and the other will be an offshoot of Air Canada. Is that what is called "competition" these days?   If only our Provincial as well as the Federal govt. would throw open the doors to competition,  we wouldn't be looking down south with envy in our hearts because everything in that country costs much, much, much, much less than what we have to pay up here.

Where are the billionaire Canadian entrepreneurs?  Can't these guys see that Canada's population is growing and we need more air transport, land transport, etc.  How about competing with the VIA rail too.  Their train fares are almost as  expensive as the airfares to get to same destinations.  When will Canada learn that when amenities and goods are priced within the reach of the common man,  those amenities and goods will be more widely used and the profit margin will in fact increase with the additional sales.

Joe Castaldo and Micah Luxen writing at Canadian Business:
....Almost everyone  has a tale about a frustrating flying disaster. But finally, there is a reason for optimism. New competition is coming to the Canadian market, with both WestJet and Air Canada recently launching subsidiaries: WestJet unveiled Encore in June to target smaller locations in Western Canada. A few days later, Air Canada rolled out Rouge, to service holiday destinations. Both are low-cost carriers, cheaper to operate than flagship lines, because hiring new staff allows the carriers to pay them less. Each new banner is starting small, but has ambitious expansion plans. Meanwhile, Toronto's Porter Airlines wants to boost competition even more by adding a slew of new jets and destinations in 2016, expanding from a regional player to a national one.

All of these developments mean consumers could benefit through more choice, increased flight frequency and even lower fares. Some carriers are boasting of reductions of up to 50% on certain routes. What's more, we could see a greater focus on customer service as airlines fight for passengers. These potential benefits come with at least one cost, however: your personal space. It's not just legroom you'll lose as carriers try to fit more passengers on their planes. One analyst who toured one of Encore's new planes was alarmed at the tiny, cramped, solitary washroom designed for all 78 passengers. "I'll just go at the airport," he says.
WestJet's Encore will likely have the most dramatic effect on the market. Its handful of Bombardier Q400 planes will target a few destinations initially, such as Fort St. John and Nanaimo in B.C. along with Saskatoon, but that's just the beginning. Encore will........

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