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Old 16th May 2010, 02:51
  #70 (permalink)  
Wxgeek
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1 How will regular service by EK affect Canadian jobs in an adverse way..ie how will jobs be LOST
If EK poaches transatlantic/transpacific traffic from Canadian carriers. (For ex: YYC/YVR/YYZ-FRA/LHR-India) (another ex:YVR-YSSY) frequencies will decrease if loads lighten up. Less frequency = less good paying Canadian pilot jobs. Those good paying pilot jobs will be replaced by contract ramp jobs from EK. No thanks.

2 How " " " " be bad for the Canadian economy
Read answer 1. If 1 set of pilots get laid off that is $300k/year of front end crew wages that disappear. These two pilots probably spend 90%+ of their wages in Canada in taxes and personal spending each year. And this is replaced by a pair of ramp jobs at $40K each? This is good somehow? For who? How does this benefit Canada? I'd rather keep the good paying jobs in Canada thanks very much.

3 How is increased competition bad for Air Canada when the free market is all about competition
If there is a mutual benefit for the competition and a level field competition is fine. What benefit will Canadian carriers get flying passengers THRU Dubai? Because that is what we are really talking about. Only a small fraction of Canada-Dubai traffic stop in Dubai. A majority connects onwards. We both know that but only one of us is saying it. As it stands now the India traffic connects thru Europe. Not ideal but at least there is an opportunity for expansion should a Canadian carrier decide to fly into India and an Indian carrier into Canada. The same opportunity does not exist for a Canadian carrier flying into Dubai. The destination traffic from Canada to Dubai too light to warrant starting a route. EK gets to poach Canada-Europe-India traffic and Canadian carrier get exactly what benefit? I see none.

The "Why would EK dominate if Air Canada offers better service??" argument
People are very price concious, so whoever offers an acceptable product at the best price will probably get the business. EK can undercut a Canadian carrier whenever it wants. AC's profits are hit and miss, EKs are consistently good. EK has access to capital AC can only dream of. Although I don't think EK would not do as well with the same tax load as AC but thats another story. AC is outgunned and I think the Canadian Government knows this. It would be easy for EK to dominate based on their better economic situation. The Canadian government really doesn't want to reduce the tax load on Canadian carriers so it must offer them some protection from poachers like EK. There just isn't enough economic benefit flowing to Canada to allow EK anything more IMO